Indonesia and Singapore have taken a significant step forward in their energy collaboration by signing a series of memoranda of understanding (MoUs) aimed at enhancing cross-border electricity exports. The agreements were finalized during a meeting in Jakarta between Indonesia’s President Prabowo Subianto and Singapore’s Prime Minister Lawrence Wong. Central to these agreements is the involvement of Indonesia’s sovereign wealth fund, Danantara, which is partnering with Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections. These partnerships are poised to facilitate the development of electricity trade between the two nations.
In addition to these partnerships, Danantara has also formulated a roadmap with the Singaporean government. This roadmap is expected to guide future negotiations and the implementation of projects, underscoring the commitment of both nations to enhance their energy cooperation. The initiative is seen as a critical move towards bolstering the ASEAN Power Grid, with Singapore recognizing Indonesia’s vast potential in renewable energy as a cornerstone of this effort.
A key component of this cooperation is a planned $210 million solar power project in Central Sulawesi. This venture will be a joint effort involving Sembcorp, Indonesia’s INA sovereign fund, and the renewable energy company SESNA. The project is slated to feature 200 megawatts of solar capacity and an 80 megawatt-hour battery storage system, furthering both countries’ renewable energy goals.
While these agreements lay the groundwork for future energy trade, Indonesia is actively engaged in ongoing negotiations regarding electricity pricing before exports can commence. Singapore has set an ambitious target to import 6 gigawatts of low-carbon electricity by 2035, with approximately 3.4 gigawatts anticipated to be sourced from Indonesia. This strategic move underscores Singapore’s commitment to reducing its carbon footprint and enhancing energy security through regional collaboration.