In a significant development for regional energy collaboration, Indonesia and Singapore have entered into new memoranda of understanding aimed at boosting cross-border electricity exports. This initiative was formalized during the annual leaders’ retreat in Jakarta, featuring discussions between Indonesian President Prabowo Subianto and Singaporean Prime Minister Lawrence Wong.
The agreements prominently feature Indonesia’s sovereign wealth fund, Danantara, which has teamed up with Singaporean entities such as Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections. These partnerships are designed to facilitate the development of electricity trade between the two nations. In addition, Danantara and the Singaporean government have outlined a roadmap to guide ongoing negotiations and the implementation of future projects.
Singapore has emphasized the importance of this initiative as a crucial step toward strengthening the ASEAN Power Grid. The country also underscored Indonesia’s abundant renewable energy resources as a key asset in this partnership. A notable project under this cooperation involves Sembcorp, Indonesia’s INA sovereign fund, and renewable energy company SESNA, who will jointly develop a solar power project valued at $210 million in Central Sulawesi. This project will include 200 megawatts of solar capacity and an 80 megawatt-hour battery storage system.
While these agreements mark a promising start, Indonesia is still in the process of negotiating electricity pricing before the export process officially begins. On the other hand, Singapore has set a target to import 6 gigawatts of low-carbon electricity by 2035, with an estimated 3.4 gigawatts expected to be sourced from Indonesia. This collaborative effort highlights the increasing focus on sustainable energy solutions within the region.
