Indonesia and Singapore Sign Landmark Green Energy Export Deal

JAKARTA, investortrust.id — Indonesia has signed three landmark memoranda of understanding with Singapore, opening the door for the export of clean electricity and deeper cooperation in low-carbon technologies and green industrial development.

The agreements were signed on Friday, June 13, 2025, in Jakarta by Minister of Energy and Mineral Resources Bahlil Lahadalia and Singapore’s Minister for Manpower and Second Minister for Trade and Industry Tan See Leng.

“I believe today marks a historic milestone in the long journey of building a strong partnership between the governments of Singapore and Indonesia in the green energy sector,” Bahlil said during the signing ceremony at the Ministry of Energy and Mineral Resources in Jakarta.

Three Pillars of Cooperation

The cooperation between Indonesia and Singapore centers on three key areas. First, the two countries agreed to facilitate cross-border electricity trade and strengthen interconnection between their power grids, a step aimed at boosting regional energy resilience.

Second, they committed to advancing renewable and low-carbon energy technologies, with a focus on improving energy efficiency and conservation practices. Third, the partnership includes the development of a joint sustainable industrial zone in the Riau Islands and a cross-border carbon capture and storage (CCS) initiative, which reflects both nations’ shared commitment to long-term emissions reduction.

“These three pillars—clean energy trade, cross-border carbon storage, and joint green industrial zones—are the backbone of our cooperation,” Bahlil said, emphasizing the transformative potential of the partnership.

Regional Growth and Shared Benefits

The former investment minister underscored the importance of a mutually beneficial framework.

“This collaboration is about lifting both countries,” he said. “We are neighbors in Southeast Asia and should support one another. Singapore is our kindred nation.”

He added that under the agreement, Singapore will not only import electricity but will also work with Indonesia to build a shared green industrial area in the Riau Islands—a move he described as a step toward equitable progress.

Strategic Significance

The deal aligns with Singapore’s need to diversify its energy sources and reduce carbon emissions, while offering Indonesia an opportunity to monetize its renewable energy potential and create jobs domestically.

Bahlil previously stated that the green electricity export plan could generate up to 418,000 new jobs in Indonesia, as the country ramps up investment in renewable generation and supporting infrastructure.