Indonesia and Singapore have agreed to build an integrated Green Industrial Zone in the Riau Islands Province (Kepri). The agreement was symbolically confirmed through a Memorandum of Understanding (MoU) regarding the Sustainable Industrial Zone. The MoU was signed by the Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia and the Minister of Energy and Science & Technology of Singapore Tan See Leng. President Prabowo Subianto and Singaporean Prime Minister Lawrence Wong witnessed the signing of the MoU in Singapore. "We have asked the Singapore government to seriously consider the development of an industrial area aimed at downstreaming based on new and renewable energy," Bahlil said on Tuesday (6/17/2025). The energy supply in this green industrial area will be guaranteed through cross-border electricity trade based on clean energy.
In addition, to keep emissions low, Carbon Capture and Storage (CCS) technology will be implemented through a separate MoU in this field. CCS technology is said to provide a solution for industries that have difficulty decarbonizing. The development of a green industrial area in the Riau Islands is expected to be a model for developing a low-carbon economy. In addition, this area is expected to be able to create thousands of new jobs and encourage the transfer of advanced technology. Bahlil said the downstream program is an absolute requirement in this cooperation. The main component manufacturing industry such as solar panels and cables will certainly be established in Indonesia as part of the agreement. "The added value that we will build is that the solar panel industry will be in Indonesia. Even for cables, it will also be built in Indonesia," said Bahlil. Bahlil said this industrial area will be built together in Karimun and Bintan to be close to Singapore. The total investment outside of that is already around USD 10 billion and most importantly, the prospective investors are already there," said Bahlil. Previously, Bahlil and Tan See Leng had signed three MoUs related to the development of environmentally friendly energy.
