By Romel S. Gurky
Indonesia and Singapore have signed a series of strategic agreements to jointly develop a green industrial zone in the Riau Islands (Kepri), marking a significant step toward regional clean energy cooperation and sustainable industrialization.
The agreements, finalized during President Prabowo Subianto’s official visit to Singapore on Monday and witnessed by Singaporean Prime Minister Lawrence Wong, include three Memoranda of Understanding (MoUs) on: cross-border electricity trade, carbon capture and storage (CCS), and the development of a Sustainable Industrial Zone (SIZ) in the Batam, Bintan, and Karimun (BBK) area.
Indonesian Minister of Energy and Mineral Resources Bahlil Lahadalia said the SIZ would be powered entirely by clean energy and serve as a model for low-carbon industrial development. Crucially, Bahlil confirmed that the zone will not only host electricity exports but also domestic manufacturing facilities for solar panels and cables.
“The added value we are building includes solar panel and cable manufacturing industries that will be located in Indonesia,” Bahlil said. “This is in line with the President’s directive to ensure that international cooperation delivers mutual benefits, including jobs and technology transfer.”
Read also: Indonesia to export 3.4 GW of clean energy to Singapore by 2035
The integrated industrial development will draw on renewable energy sources and incorporate carbon capture and storage solutions to support hard-to-abate industries. The zone is expected to attract an initial investment of around US$10 billion and create thousands of jobs in Kepri.
To support the development, both countries have agreed to form joint task forces. These will focus on regulatory frameworks and infrastructure requirements for clean energy exports and CCS deployment, with a goal of finalizing implementation strategies within 12 months.
“This is a major milestone in our continued partnership with Indonesia under the Prabowo administration,” said Dr. Tan See Leng, Singapore’s Minister for Energy and Science & Technology. “These win-win partnerships will support both countries in achieving a resilient and low-carbon energy future and spur new investments in green activities.”
The green industrial zone is expected to serve as a regional hub for clean energy production, component manufacturing, and carbon mitigation technologies—aligning with Indonesia’s broader energy transition roadmap and Singapore’s decarbonization goals.
Editing by Alexander Ginting
