In a significant move to boost cross-border electricity exports, Indonesia and Singapore have inked a series of memoranda of understanding (MoUs) during their annual leaders’ retreat in Jakarta. This meeting between President Prabowo Subianto and Prime Minister Lawrence Wong resulted in partnerships involving Indonesia’s sovereign wealth fund, Danantara, with Singapore-based entities Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections. These collaborations aim to enhance electricity trade between the two nations, with a roadmap agreed upon to guide future negotiations and project rollouts.
The initiative has been hailed by Singapore as a critical advancement in fortifying the ASEAN Power Grid. The agreement underscores Indonesia’s substantial renewable energy capacity, which is set to play a pivotal role in this cross-border collaboration. Part of the cooperation involves Sembcorp teaming up with Indonesia’s INA sovereign fund and the renewable energy firm SESNA to develop a $210 million solar power project in Central Sulawesi. This project is designed to deliver 200 megawatts of solar capacity alongside an 80 megawatt-hour battery storage system.
As these initiatives progress, Indonesia continues to negotiate electricity pricing, a crucial step before the exports can commence. Singapore has set an ambitious target to import 6 gigawatts of low-carbon electricity by 2035, a significant portion of which—approximately 3.4 gigawatts—is expected to be sourced from Indonesia. This endeavor represents a strategic effort by Singapore to diversify its energy sources while tapping into the extensive renewable resources of its neighbor.
The memoranda mark a milestone in regional energy cooperation, reflecting a shared vision for sustainable energy development within Southeast Asia. By leveraging Indonesia’s renewable energy potential, the two countries aim to contribute to a greener regional energy landscape while strengthening economic ties through mutual investment and infrastructural development.