During a recent leaders’ retreat in Jakarta, Indonesia and Singapore have formalized several memoranda of understanding (MoUs) aimed at boosting cross-border electricity exports. The agreements were signed between Indonesia’s President Prabowo Subianto and Singapore’s Prime Minister Lawrence Wong, signaling a strengthened collaboration in energy trade between the two nations.
The MoUs involve Indonesia’s sovereign wealth fund, Danantara, which has entered into partnerships with entities such as Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections. These partnerships are designed to facilitate the development of electricity trade, with a specific focus on leveraging Indonesia’s significant renewable energy resources. Additionally, Danantara has established a roadmap with the Singapore government to guide ongoing negotiations and future project execution.
Singapore has emphasized that this initiative is a vital step in enhancing the ASEAN Power Grid, a regional energy integration effort. The agreements underscore Indonesia’s substantial renewable energy capabilities, which are central to the collaboration. In a notable project under this cooperation, Sembcorp, along with Indonesia’s INA sovereign fund and renewable energy firm SESNA, will develop a solar power project worth $210 million in Central Sulawesi. This project is set to include 200 megawatts of solar power capacity and an accompanying 80 megawatt-hour battery storage system.
Before the electricity exports commence, Indonesia is focused on finalizing negotiations regarding electricity pricing. Singapore, on its part, has set a target to import 6 gigawatts of low-carbon electricity by 2035, with approximately 3.4 gigawatts anticipated to be sourced from Indonesia. This strategic move not only aims to secure a sustainable energy supply for Singapore but also aligns with broader regional efforts to transition to low-carbon energy solutions.