In a significant move to bolster cross-border electricity exports, Indonesia and Singapore have inked several memoranda of understanding (MoUs) during the annual leaders’ retreat held in Jakarta. The agreement between Indonesian President Prabowo Subianto and Singaporean Prime Minister Lawrence Wong marks a pivotal step in enhancing energy cooperation between the two nations.
Central to these agreements is Indonesia’s sovereign wealth fund, Danantara, which has partnered with Singapore-based companies Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections. These partnerships are set to facilitate the development of electricity trade, ensuring a streamlined process for future negotiations and project implementations. A roadmap was also established between Danantara and the Singaporean government to guide this collaboration.
Singapore views this initiative as a crucial advancement in fortifying the ASEAN Power Grid, emphasizing Indonesia’s abundant renewable energy resources. Highlighting this cooperation is a joint venture between Sembcorp, Indonesia’s INA sovereign fund, and the renewable energy firm SESNA. Together, they plan to develop a $210 million solar power facility in Central Sulawesi, which will have a capacity of 200 megawatts and include an 80 megawatt-hour battery storage system.
While Indonesia continues to negotiate electricity pricing, Singapore has set ambitious goals for its energy imports. The city-state aims to import 6 gigawatts of low-carbon electricity by 2035, with approximately 3.4 gigawatts expected to be sourced from Indonesia. This collaboration is anticipated to significantly contribute to Singapore’s sustainable energy objectives while optimizing Indonesia’s renewable energy potential.