Singapore and Indonesia have signed three significant Memoranda of Understanding (MoUs) aimed at deepening cooperation in clean energy and sustainable development.
The agreements, signed in Jakarta during a working visit by Singapore’s Minister for Trade and Industry (Energy and Science & Technology), Dr. Tan See Leng, and Indonesia’s Minister for Energy and Mineral Resources, Dr. Bahlil Lahadalia, cover cross-border electricity trade, carbon capture and storage, and the development of a sustainable industrial zone.
These agreements signal both countries’ commitment to forging long-term, mutually beneficial partnerships that support the transition to low-carbon energy, industrial decarbonisation, and increased green investment.
The Cross-Border Electricity Trade (CBET) MoU builds on previous energy collaborations and aims to establish the necessary policies, regulations, and business structures within the next 12 months to facilitate the trade of renewable electricity between the two nations.
The second MoU focuses on Carbon Capture and Storage (CCS). Under this agreement, Singapore and Indonesia will form a joint working group to explore the key elements of a legally binding government-to-government agreement that would enable the safe and effective implementation of cross-border CCS projects.
The third MoU outlines plans for a Sustainable Industrial Zone (SIZ) in Bintan, Batam, and Karimun.
A joint task force will be set up to assess the potential for developing renewable energy-linked industries in these regions. The agreement underscores the importance of regulatory clarity in attracting investments and driving sustainable growth in Indonesia.
Dr. Tan See Leng described the signing as a major milestone in the ongoing partnership with Indonesia under President Prabowo’s administration.
He emphasized that the initiatives reflect both countries’ determination to pursue impactful, climate-focused collaboration.
According to Dr. Tan, the partnerships will help Singapore and Indonesia build a resilient, low-carbon energy future while also contributing to global climate action and generating new investment opportunities in the green economy.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
