The agreements were signed during the visit of Singapore's Minister for Energy and Science and Technology, Dr. Tan See Leng, and Indonesia's Minister of Energy and Mineral Resources, Dr. Bahlil Lahadalia, to Jakarta on June 13. Dr. Tan emphasized that the agreements were not merely symbolic, stating, “This reflects our commitment to turning our ideas into action and doing so through close partnership and mutual trust.”
Noting that the agreements offer “win-win opportunities” for both sides amid global climate challenges and economic uncertainty, Tan said these collaborations will promote innovation, open up new growth areas, and aim to sustainably grow both economies.
Dr. Tan said that green projects will bring significant capital investments and foreign exchange revenues, while also increasing annual tax revenues. He emphasized that electricity exports will strengthen Indonesia's renewable energy production and supply chains.
Carbon capture and storage cooperation
One of the agreements covers cooperation in the field of carbon capture and storage (CCS). The parties will establish a joint working group to evaluate a legally binding bilateral agreement to facilitate the implementation of the project. Dr. Tan noted that this step could both create employment and generate new investment opportunities for Indonesia.
Noting that the expansion of CCS in the region could be a pioneering move for Asia, Tan said that Southeast Asia has a carbon dioxide storage potential of approximately 133 gigatons, and that Singapore's 2 million ton per year project will contribute to Indonesia's goal of becoming a regional CCS hub.
A sustainable industrial zone will be established in the BBK region
The third agreement aims to develop a sustainable industrial zone (SIZ) in the Bintan, Batam, and Karimun (BBK) regions near Singapore. A joint task force will identify potential sectors in these regions to shape the direction of investments.
Dr. Tan said, “This is the result of our years-long partnership to attract investment to BBK,” adding that the collaboration will accelerate industrial activities in Indonesia.
The Singapore Ministry of Trade and Industry (MTI) emphasized that the agreements have the potential to attract green investments to Indonesia by providing regulatory clarity.
“We must go together” message
Dr. Tan concluded his remarks by saying, “If we want to go far, we must go together. Singapore is committed to working with Indonesia and other partners to achieve our net-zero target.”
Indonesian Minister Bahlil, meanwhile, described the agreements as a “historic moment,” emphasizing that green energy cooperation is indispensable for global competitiveness. “True cooperation is not just about providing electricity, but also about working together to build industrial zones,” he said.
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