SINGAPORE/JAKARTA (Bernama): Indonesia’s plan to develop a green industrial zone in the Riau Islands linked to clean electricity cooperation with Singapore is nearing finalisation, said Energy and Mineral Resources Minister Bahlil Lahadalia.
He said the project, located in the Batam, Bintan, and Karimun (BBK) area, is expected to attract high-technology industries and support Indonesia’s ambition to become a key player in the regional green energy supply chain.
The update was raised during Bahlil’s meeting with Singapore’s Manpower Minister and Minister-in-charge of Energy and Science & Technology, Dr Tan See Leng, in Tokyo, Japan, on Sunday, where the two sides discussed cooperation on clean energy and cross-border electricity trade.
"I have received reports that the industrial zone is almost finalised. Later we will develop it in the Riau Islands region.
"I am currently getting more details. Once completed, then I think this is one of the progresses in the preparations,” he was quoted as saying in a statement issued by the ministry on Sunday.
According to Indonesia’s Energy and Mineral Resources Ministry, plans to export clean electricity from Indonesia to Singapore are intended not merely as energy trade, but also as a way to attract high-technology industrial investment.
The ministry said that the government aims to leverage the availability of green energy to encourage global companies to establish production facilities and technology centres in the BBK area, allowing the region to develop into a new green industrial hub.
In welcoming the progress of the discussions, Tan said that technical negotiations between the two sides had advanced well, the statement said.
During the meeting, the two ministers also discussed plans to develop sustainable industrial zones in the BBK area, while ensuring that domestic electricity demand remains a priority before any exports.
Bahlil said Indonesia is also preparing to collaborate with Singapore on low-carbon technologies such as carbon capture and storage (CCS).
"Regarding CCS, the regulations have already been prepared. That is something we can collaborate on,” he said.
Bahlil added that Indonesia has offered electricity exports sourced from solar power plants, in line with a broader programme to develop 100 gigawatts (GW) of electricity capacity to meet domestic demand and potentially supply neighbouring countries.
He acknowledged, however, that green energy remains more expensive than fossil-based energy.
The two ministers agreed that the cooperation reflects growing energy leadership in ASEAN, with pilot projects expected to begin soon in the BBK area, signalling the implementation of three memoranda of understanding previously signed between the two countries.
-- BERNAMA
