Jakarta – A strategic cooperation instrument between Indonesia and Singapore formalised the development of a Green Industrial Zone in Riau Islands Province (Kepri), combining clean energy, downstream technology, and Carbon Capture and Storage (CCS), according to the Ministry of Energy and Mineral Resources (MEMR) on Tuesday, June 17.
This commitment was marked by the signing of a Memorandum of Understanding (MoU) by Minister of Energy and Mineral Resources Bahlil Lahadalia and Singapore’s Minister of Research and Technology Tan See Leng, witnessed by President Prabowo Subianto and Prime Minister Lawrence Wong on Monday, 16 June, in Singapore.
Minister Bahlil emphasised that this initiative was motivated by the president’s direct instruction for Indonesia to establish “win-win” cooperation, especially in the development of the clean energy sector. “We are encouraging the downstreaming of the renewable energy industry, and Singapore has responded positively,” Bahlil said.
Under the SIZ (Sustainable Industrial Zone) MoU, industrial solar panels and power cables will be produced in the Riau Islands region, while the electricity generated will be connected through a cross-border interconnection with Singapore.
Low-carbon solutions for heavy industry
The agreement also includes a cross-border CCS MoU specifically facilitated in this green industrial park. Bahlil mentioned that this will be a solution for industries that are difficult to decarbonise, while maintaining low emission standards in industrial areas.
CCS technology will be implemented through technical cooperation between the two countries, while opening up opportunities for local industries to adopt the low-carbon technology.
Bahlil revealed that the initial investment in the two main islands, Bintan and Karimun, has reached USD 10 billion, with potential investors from both home and abroad already identified.
“The region is becoming a real model of a low-carbon economy, creating thousands of jobs, encouraging the transfer of advanced technology, and growing the added value of local industries,” Bahlil said.
The MoU signing in Singapore was the culmination of weeks of technical discussions. It was part of a bilateral Leaders’ Retreat that emphasised both countries’ priorities in green investment.
During the previous meeting in Jakarta on Friday, 13 June, three MoUs were signed, including the Sustainable Industrial Zone (SIZ) in the Riau Islands, Clean Electricity Interconnection and Trade, and Cross-border CCS Collaboration.
With this MoU, the solar panel and cable industry in the Riau Islands will be directly integrated into the national grid and exported to Singapore. CCS technology will be installed at a strategic, heavy industrial site, which will serve as a national benchmark.
The following steps include the development of an implementation roadmap, licensing, and pre-operational trials to ensure that the construction of the area is completed on time and following ecological standards. (Hartatik)
Banner photo: President Prabowo Subianto inaugurates the launch of the Renewable Energy Interconnectors Milestone Ceremony initiative at Parliament House, Singapore, Monday (16/6). (Source: Press, Media and Information Bureau, Presidential Office/BPMI)
