On June 13, 2025, Minister of Energy and Mineral Resources Bahlil Lahadalia and Singapore's Minister of Manpower and Second Minister for Trade and Industry Tan See Leng signed a Memorandum of Understanding. The cooperation between the two countries under the MoU covers Sustainable Industrial Zones, Cross-Border Electricity Interconnection and Trade, Renewable and Low-Carbon Energy Technology, Energy Efficiency and Conservation, and Cross-Border Carbon Capture and Storage Cooperation. The plan for cross-border green electricity trade of 3.4 gigawatts (GW) by 2035 has a potential investment of USD 30-50 billion for the construction of solar panel power plants, as well as a potential USD 2.7 billion for the construction of solar panel manufacturing and battery energy storage systems. The additional potential foreign exchange earnings per year from this cooperation amount to USD 4-6 billion, along with the potential for an additional 418,000 new jobs.
Bahlil has stated that Indonesia will begin exporting green electricity to Singapore. In return, Singapore is expected to develop a renewable energy-based industrial zone in Indonesia, initially planned to be built in the Riau Islands. Additionally, during discussions between Minister Bahlil and Singapore, plans for the development of a renewable energy-based industrial zone and cooperation on carbon capture and storage were discussed. This collaboration aims to ensure the reliable supply of electricity in Singapore and to facilitate the development of industrial zones for downstream processing in Indonesia.
