Singapore and Indonesia Forge Green Energy Pact to Power Southeast Asia's Clean Future

• Cross-border power trade to boost ASEAN grid and Indonesia's renewables.
• Singapore and Indonesia pioneer Asia's first cross-border carbon capture project.
• BBK region to host Sustainable Industrial Zone for green investments.

In a significant move towards decarbonization of the economy in Southeast Asia, Singapore and Indonesia have launched three strategic agreements that are focused on clean energy, carbon capture, and green industrialization. These memoranda of understanding were inked during a high-level visit by the Singapore Minister-in-charge of Energy and Science and Technology, Dr Tan See Leng, and the Indonesia Minister for Energy and Mineral Resources, Dr Bahlil Lahadalia.

The landmark agreements aim to further the common regional vision of low-carbon and resilient future. “Today’s signing ceremony is not just symbolic. It is a true reflection of both our shared resolve to translate our ideas into actions and to do so in close partnership and mutual trust,” Dr Tan stated.

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Among the major agreements, there is a milestone agreement on cross-border power trade which will open the path to a more integrated ASEAN Power Grid. Not only will it bring energy connectivity in the region, but also it will spur the growth of renewable energy production in Indonesia that will bring employment and long-term investments “Together, Singapore and Indonesia, we are also laying the foundation for a more connected Asean Power Grid and a more secure and sustainable energy future,” Dr Tan added.

A second agreement is on carbon capture and storage (CCS), making Indonesia and Singapore the first movers of cross-border CCS in Asia. “It is not a new technology, but if Indonesia and Singapore can succeed in making this cross-border CCS a reality, we will be among the first countries in Asia to do so,” said Dr Tan.

The third agreement is the establishment of a Sustainable Industrial Zone in the Bintan, Batam and Karimun (BBK) area, which is meant to attract green investments and upscale clean industrial actions.