Indonesia and Singapore have taken a significant step towards enhancing their bilateral energy cooperation by signing multiple memoranda of understanding (MoUs) aimed at facilitating cross-border electricity exports. This development emerged from the annual leaders’ retreat in Jakarta, where Indonesian President Prabowo Subianto and Singaporean Prime Minister Lawrence Wong convened to discuss strategic partnerships.
The newly inked agreements prominently feature Indonesia’s sovereign wealth fund, Danantara, entering collaborations with several Singaporean entities, including Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections. These partnerships are designed to bolster the development of electricity trade between the two nations. Additionally, Danantara and the Singaporean government have laid out a roadmap to streamline future negotiations and project implementations, indicating a long-term commitment to this endeavor.
Singapore views this initiative as a crucial move towards fortifying the ASEAN Power Grid, emphasizing the untapped potential of Indonesia’s renewable energy resources. One of the notable projects under this collaboration involves Sembcorp, the Indonesia Investment Authority (INA), and renewable energy firm SESNA. Together, they plan to develop a $210 million solar power project in Central Sulawesi, which will feature a 200-megawatt solar capacity and an 80 megawatt-hour battery storage system. This project underscores the focus on sustainable energy solutions.
As the collaboration progresses, Indonesia is currently engaged in talks regarding electricity pricing before the commencement of exports. Meanwhile, Singapore has set ambitious plans to import 6 gigawatts of low-carbon electricity by 2035, with an estimated 3.4 gigawatts anticipated to be sourced from Indonesia. This aligns with Singapore’s broader strategy to transition towards more sustainable energy sources and reduce its carbon footprint.