JAKARTA: Singapore and Indonesia have inked three key agreements to strengthen cooperation in clean energy and sustainable development, in a “win-win partnership” that marks a significant milestone in their green partnership.
The Memoranda of Understanding (MoUs) were inked on June 13 during a visit to Jakarta by Singapore’s Minister-in-charge of Energy and Science and Technology, Dr Tan See Leng, and Indonesia’s Minister for Energy and Mineral Resources, Dr Bahlil Lahadalia.
Describing the agreements as a step forward in the two countries’ shared vision for a low-carbon and resilient future, Dr Tan said the deals were mutually beneficial.
“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,” he said in a speech.
The agreements, Dr Tan added, “offer win-win opportunities” amid global climate challenges and economic uncertainty. They aim to grow and decarbonise both countries’ economies in a sustainable way, spur innovation and unlock new growth areas.
“These are a concrete step to anchor long-term cooperation,” he said.
One of the cornerstone agreements targets cross-border electricity trade (CBET). This builds on earlier energy cooperation frameworks and aims to develop the necessary policies, regulatory mechanisms and commercial terms within a year.
Dr Tan noted that the projects under this initiative could attract significant capital investment, boost foreign exchange earnings, and increase annual tax revenue.
He added that electricity exports would also accelerate the growth of Indonesia’s renewable energy manufacturing sector and enhance its broader supply chain, creating jobs and drawing long-term investment.
“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,” he said, referring to the initiative to connect energy systems across South-east Asia.
Another agreement focuses on collaboration in carbon capture and storage (CCS). A joint working group will be formed to explore a legally binding bilateral agreement to facilitate project implementation.
Calling CCS “necessary for the decarbonisation of hard-to-abate economic activities” in both countries, Dr Tan said such a move could create a major new business opportunity for Indonesia while creating jobs and attracting investments.
“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,” he said. - The Straits Times/ANN
