During a recent leaders’ retreat in Jakarta, Indonesia and Singapore took a significant step forward in enhancing their cross-border energy collaboration by signing several new memoranda of understanding (MoUs). The agreements were concluded between Indonesia’s President Prabowo Subianto and Singapore’s Prime Minister Lawrence Wong, focusing on advancing electricity exports between the two nations. Central to these agreements is Indonesia’s sovereign wealth fund, Danantara, which has entered partnerships with Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections. These partnerships are poised to play a pivotal role in fostering the development of electricity trade between the countries.
One of the key outcomes of these MoUs is a roadmap established between Danantara and the Singaporean government. This roadmap is designed to guide the future trajectory of negotiations and the implementation of related projects, ensuring a structured and strategic approach to realizing these cross-border energy objectives. Singapore has underscored the importance of this initiative as a crucial advancement in bolstering the ASEAN Power Grid, recognizing Indonesia’s substantial renewable energy capabilities as a valuable asset in this collaborative effort.
Among the initiatives outlined is a $210 million solar power project slated for development in Central Sulawesi. This project will be a joint endeavor involving Sembcorp, Indonesia’s INA sovereign fund, and the renewable energy company SESNA. The project is set to include 200 megawatts of solar capacity alongside an 80 megawatt-hour battery storage system, marking a significant investment in sustainable energy infrastructure.
While the groundwork for these projects is being laid, Indonesia continues to negotiate the terms of electricity pricing before the commencement of exports. In line with its energy goals, Singapore aims to import 6 gigawatts of low-carbon electricity by 2035, with an anticipated 3.4 gigawatts sourced from Indonesia. This ambition highlights Singapore’s commitment to diversifying its energy sources and reducing its carbon footprint.