Jakarta, Indonesia Sentinel — Indonesia has officially entered into a strategic energy partnership with Singapore to strengthen cooperation in the green energy sector.
The agreement was formalized through a Memorandum of Understanding (MoU) signed by Indonesia’s Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, and Singapore’s Minister for Manpower and Second Minister for Trade and Industry, Tan See Leng.
The ceremony took place in Singapore on Monday, June 16, 2025, and was witnessed by Indonesian President Prabowo Subianto and Singaporean Prime Minister Lawrence Wong.
Bahlil stated that the energy partnership aligns with President Prabowo’s directive to prioritize green industrial development. “We have urged the Singaporean government to seriously consider investing in industrial zones focused on renewable energy-based downstream processing,” he said, as reported by Antara on Tuesday.
The cooperation is outlined in three key MoUs:
- MoU on the Development of Sustainable Industrial Zones (SIZ);
- MoU on Cross-Border Electricity Interconnection and Trade, Renewable and Low-Carbon Energy Technologies, and Energy Efficiency and Conservation;
- MoU on Cross-Border Carbon Capture and Storage (CCS) Collaboration.
A major element of the partnership includes the development of an integrated green industrial zone in Indonesia’s Riau Islands, specifically in Karimun and Bintan, areas strategically located near Singapore. The initial investment is estimated at $10 billion.
Bahlil emphasized that the industrial zone will be built with a comprehensive ecosystem that integrates clean energy infrastructure, cross-border electricity interconnection, and CCS technology. Clean energy will be supplied through cross-border electricity trade, while CCS systems will be used to maintain low emissions.
The Indonesian government hopes the project will serve as a model for low-carbon economic development, promoting advanced technology transfer and generating thousands of new jobs. Bahlil added that the collaboration also opens up new markets for Indonesia’s solar and geothermal energy industries.
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Earlier on Monday, President Prabowo and Prime Minister Wong jointly inaugurated the Renewable Energy Interconnectors Milestone Ceremony at Singapore’s Parliament House, marking a significant step forward in sustainable energy collaboration between the two nations.
“Our work in the green economy strengthens an already robust and diverse economic relationship,” PM Wong said. He expressed strong optimism for the future of bilateral energy cooperation.
Through this partnership, Indonesia and Singapore are demonstrating a concrete commitment to tackling climate change, while paving the way for new investments in sustainable industrial development, cross-border electricity trade, and low-carbon energy infrastructure.
(Raidi/Agung)
