In a significant move to boost cross-border electricity exports, Indonesia and Singapore have inked a series of new memoranda of understanding (MoUs) during the annual leaders’ retreat in Jakarta. The agreements, reached between Indonesian President Prabowo Subianto and Singaporean Prime Minister Lawrence Wong, are set to enhance electricity trade between the two nations. Central to these developments is Indonesia’s sovereign wealth fund, Danantara, which has entered into collaborations with Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections.
The partnerships aim to support the development of electricity trade, with Danantara also establishing a roadmap with the Singaporean government to facilitate future negotiations and project execution. This initiative is seen as a pivotal step toward reinforcing the ASEAN Power Grid, showcasing Indonesia’s immense renewable energy potential. Highlighting this collaboration, Sembcorp, together with Indonesia’s INA sovereign fund and renewable energy company SESNA, is set to embark on a $210 million solar power project in Central Sulawesi. This ambitious project will boast 200 megawatts of solar capacity coupled with an 80 megawatt-hour battery storage system.
As preparations advance, Indonesia is actively negotiating electricity pricing ahead of initiating exports. This endeavor aligns with Singapore’s broader energy strategy, which aims to import 6 gigawatts of low-carbon electricity by 2035. A substantial portion of this, approximately 3.4 gigawatts, is anticipated to be sourced from Indonesia, underscoring the significance of the bilateral agreements reached during the retreat.
These developments mark a notable achievement in the regional energy landscape, as both nations look to leverage their strengths to foster sustainable energy solutions. By tapping into Indonesia’s renewable resources, Singapore hopes to make significant strides toward its environmental goals, setting a precedent for future cross-border energy collaborations within the ASEAN region.