Jakarta – In an ambitious collaborative move, Indonesia and Singapore are officially committing investments worth more than USD 10 billion to accelerate the transition to clean energy, according to the Ministry of Energy and Mineral Resources (MEMR), on Monday, 16 June. This large investment is focused on three main projects: the construction of large-scale solar panels, the development of Carbon Capture and Storage (CCS) technology, and the establishment of an integrated green industrial area.
The three agreements were outlined in the signing of a Memorandum of Understanding (MoU) between the two countries, which was carried out at the Indonesian Ministry of Energy and Mineral Resources Office on Friday, 13 June, witnessed by Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia and Singapore’s Minister of Trade and Industry Gan Kim Yong.
Bahlil said the signing of the three MoUs will bring long-term benefits to both countries. “The investment value is estimated at more than USD 10 billion, which shows that the issue of clean energy is now a meeting point between diplomacy and economics.”
In this investment scheme, funds are divided into three strategic steps. Firstly, the installation of solar panels. Solar power infrastructure will be developed massively to supply domestic demand and export clean electricity to Singapore through a cross-border interconnection network.
Secondly, CCS (carbon capture and storage) facilities will be strategically positioned, making Indonesia-Singapore a regional pioneer in carbon emission reduction technology for the heavy industry sector.
Third, green industrial zones. A low-carbon standard industrial estate will be built in the Riau Islands, bringing together manufacturing facilities, logistics chains and digital infrastructure to support a sustainable economy.
Bahlil added that the project has the potential to create tens of thousands of jobs, ranging from solar panel and Battery Energy Storage System (BESS) manufacturing, to operationalisation and maintenance.
“In terms of the economy, additional foreign exchange is estimated to reach USD 6 billion per year. This does not include state revenue from the taxation sector, which could be worth hundreds of millions of dollars,” he said.
A special team formed by the two countries
To ensure the project runs smoothly and on time, the two countries have formed a Cross-Border Renewable Energy Task Force (NRE task force). The task force is led by Indonesia’s Minister of Energy and Mineral Resources and Singapore’s Minister of Trade and Industry.
The task force will oversee the technical development plan, project financing scheme, and supervision of sustainable green industrial estate governance.
This move by Indonesia and Singapore marks a new chapter in energy cooperation in Southeast Asia, with a strong commitment to a just, sustainable, and globally competitive energy transition.
“This is not just an investment, but a symbol that two ASEAN countries are capable of being the locomotives of change towards a low-carbon future,” Bahlil concluded. (Hartatik)
Banner photo: President Prabowo Subianto and Prime Minister Lawrence Wong witnessed the MoU signing by Minister of Energy and Mineral Resources Bahlil Lahadalia and Singapore’s Minister of Research and Technology Tan See Leng, on Monday, 16 June, in Singapore. (Source: Press, Media and Information Bureau of the President’s Secretariat/BPMI)
