In a move to bolster cross-border electricity trade, Indonesia and Singapore have inked several new memoranda of understanding. These agreements, finalized during the annual leaders’ retreat in Jakarta, were attended by Indonesian President Prabowo Subianto and Singaporean Prime Minister Lawrence Wong. The collaboration focuses on electricity exports and involves significant players, including Indonesia’s sovereign wealth fund, Danantara.
Danantara has partnered with Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections to facilitate the development of electricity trade between the two nations. Furthermore, an agreement was reached with the Singaporean government to establish a roadmap that will guide future negotiations and project execution. This initiative is seen by Singapore as a crucial step in enhancing the ASEAN Power Grid, emphasizing Indonesia’s considerable renewable energy capabilities.
Part of the agreement includes a collaborative venture between Sembcorp, Indonesia’s INA sovereign fund, and renewable energy company SESNA. Together, they plan to develop a solar power project in Central Sulawesi, valued at $210 million. This project is set to feature 200 megawatts of solar capacity along with an 80 megawatt-hour battery storage system, underscoring the commitment to renewable energy solutions.
As these developments unfold, Indonesia is still in discussions regarding the pricing of electricity before commencing exports. Meanwhile, Singapore has outlined its intention to import 6 gigawatts of low-carbon electricity by 2035, with a significant portion, approximately 3.4 gigawatts, anticipated to be sourced from Indonesia. This strategic partnership highlights a shared vision for a sustainable energy future in the region.