Jakarta – Singapore-based energy giant Sembcorp Industries and Aster Chemicals and Energy are investing billions of dollars in infrastructure and industrial estates in Indonesia. The strategic partnership between the joint venture of PT Chandra Asri Pacific Tbk (TPIA) and Glencore (Aster) and Sembcorp begins with an energy and utility supply contract worth more than SGD 650 million (Rp 8.27 trillion).
“This is not just an energy cooperation, but a strategic step towards building a sustainable industrial and energy ecosystem in Southeast Asia, including Indonesia,” said Erwin Ciputra, Group CEO of Aster, in an official statement on Wednesday, 14 May.
Indonesia on the infrastructure expansion radar
Not only Singapore, also both parties signed a memorandum of understanding (MoU) to explore various projects in the ASEAN region, with Indonesia as one of the main targets. Under the MoU, the cooperation to be explored includes the development of co-generation projects and utilities for the Aster facility, regional gas procurement between countries, joint investment in infrastructure projects, and the development of industrial estates in strategic areas of Indonesia.
These opportunities are considered strategic in line with Indonesia’s increasing demand for energy and infrastructure, especially in the manufacturing sector and green industrial estates.
Aster and Sembcorp stated that the collaboration was born from the region’s need to accelerate the energy transition and strengthen supply security. Koh Chiap Khiong, President & CEO of Gas and Related Services at Sembcorp Industries, said the project is part of their long-term Southeast Asian strategy.
“We are committed to delivering gas and power solutions that are resilient, sustainable and support the growth of key industries in the region,” Koh said.
He emphasised that co-generation and utility projects with Aster will help reduce emissions and improve energy efficiency, which are key to industrial competitiveness amid global environmental demands.
Aster’s integrated chemical complexes in Bukom Island and Jurong, Singapore, will be the initial locations for implementing the energy supply cooperation. However, through the development of industrial and energy support infrastructure, the spillover effect is expected to extend to other regions, including Indonesia.
“We want to shape the future of more responsible energy and environmental management through innovation and long-term partnerships,” added Erwin Ciputra.
By combining the financial and technological strengths of Aster and Sembcorp, Indonesia has the opportunity to become the next centre for green industry development in Southeast Asia. (Hartatik)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
