During the annual leaders’ retreat in Jakarta, Indonesia and Singapore have signed multiple memoranda of understanding (MoUs) to facilitate the export of electricity across their borders. The agreements were forged between President Prabowo Subianto of Indonesia and Singapore’s Prime Minister Lawrence Wong. These new partnerships involve Indonesia’s sovereign wealth fund, Danantara, collaborating with Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections to bolster electricity trade between the nations.
As part of these agreements, Danantara has also laid out a roadmap with the Singaporean government to guide future negotiations and project implementation. This initiative is seen by Singapore as a crucial step toward enhancing the ASEAN Power Grid, while also emphasizing the considerable renewable energy resources available in Indonesia. The agreements include a significant project involving Sembcorp, Indonesia’s INA sovereign fund, and renewable energy company SESNA, which will collectively develop a $210 million solar power project in Central Sulawesi. This project will feature 200 megawatts of solar capacity along with an 80 megawatt-hour battery storage system.
Negotiations on electricity pricing are still ongoing in Indonesia before the commencement of exports. Singapore has set a target to import 6 gigawatts of low-carbon electricity by the year 2035, with an estimated 3.4 gigawatts expected to be sourced from Indonesia. This move highlights Singapore’s commitment to securing sustainable energy sources and reducing its carbon footprint through regional cooperation.
The recent agreements underscore the deepening economic ties between Indonesia and Singapore, particularly in the realm of energy cooperation. By tapping into Indonesia’s renewable energy capabilities, Singapore aims to diversify its energy sources, thereby enhancing energy security and sustainability. This collaboration is expected to contribute significantly to regional energy integration, supporting the broader vision of a connected and resilient ASEAN Power Grid.