During a recent leadership summit held in Jakarta, Indonesia and Singapore reached a significant milestone by signing multiple memoranda of understanding (MoUs) aimed at enhancing cross-border electricity trade. The agreements were made during discussions between Indonesian President Prabowo Subianto and Singaporean Prime Minister Lawrence Wong. Central to this initiative is Indonesia’s sovereign wealth fund, Danantara, which has entered into collaborations with Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections, setting the stage for a robust electricity trade framework between the two nations.
Danantara has also charted a roadmap with the Singaporean government, which will serve as a guiding document for future negotiations and the rollout of projects under this initiative. This collaboration represents a strategic move to bolster the ASEAN Power Grid, as noted by Singapore, while also tapping into Indonesia’s abundant renewable energy resources. In line with these efforts, Sembcorp, Indonesia’s INA sovereign fund, and the renewable energy company SESNA have committed to developing a substantial $210 million solar power project in Central Sulawesi. This project is set to include 200 megawatts of solar capacity and an accompanying 80 megawatt-hour battery storage system.
As the plans move forward, Indonesia is currently focused on finalizing electricity pricing agreements before the commencement of exports. This development is crucial as part of Singapore’s broader strategy to import 6 gigawatts of low-carbon electricity by 2035. Notably, Singapore anticipates that approximately 3.4 gigawatts of this electricity will be sourced from Indonesia, underscoring the significance of these bilateral agreements.
