On June 13, 2025, Indonesia and Singapore signed a landmark set of three Memoranda of Understanding (MoUs) aimed at strengthening bilateral cooperation in renewable energy development, carbon capture and storage (CCS), and the creation of a Sustainable Industrial Zone (SIZ). The MoUs were signed by Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, and Singapore’s Minister for Manpower and Second Minister for Trade and Industry, Tan See Leng, at the Ministry of Energy and Mineral Resources in Jakarta.
The first MoU focuses on establishing a Sustainable Industrial Zone across Batam, Bintan, and Karimun in Indonesia’s Riau Islands Province. This initiative will serve as a regional hub for clean energy manufacturing, logistics, and battery storage, supported by simplified regulations, cross-sectoral support, and investment-friendly policies.
The second MoU covers cross-border electricity trade and interconnection. Singapore plans to import up to 3.4 GW of renewable electricity from Indonesia, supported by the development of large-scale solar and Battery Energy Storage System (BESS) infrastructure. The deal requires substantial investment in 18.7 GW of solar capacity and 35.7 GWh of battery storage, unlocking a clean energy corridor between the two nations.
The third MoU is dedicated to cross-border Carbon Capture and Storage (CCS). With Singapore facing limited storage capacity and Indonesia possessing abundant geological formations from retired oil and gas wells, both countries see this as a key solution for industrial decarbonization. The CCS agreement will serve as Southeast Asia’s first cross-border carbon management framework.
These three MoUs represent a shared commitment to regional energy security, emissions reduction, and economic synergy, with total projected investments ranging from USD30–50 billion. The collaboration is also expected to boost local employment, increase state revenue, and position Southeast Asia as a global leader in clean industrial transformation.
At Energy Academy Indonesia (ECADIN), our mission is to create a greener future by accelerating energy transition and promoting just sustainable growth. We’re proud to support initiatives that prioritize regional cooperation, technology innovation, and green infrastructure. ECADIN continues to engage in research, advocacy, and knowledge-sharing that aligns with strategic MoUs like this, contributing to a more resilient and low-carbon Southeast Asian future.
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