The agreement was marked by the signing of a memorandum of understanding (MoU) between Minister of Energy and Mineral Resources, Bahlil Lahadalia, and Singapore’s Second Minister for Trade and Industry, Tan See Leng.
Clean electricity, or carbon-free electricity, refers to electricity without high voltage spikes and drops. It causes less electrical pollution.
“Today is a very historic day after a long process that shows the commitment of Indonesia and Singapore in collaborating on green energy,” Lahadalia said after the MoU signing in Jakarta on Friday.
The agreement on the clean electricity export was reached after tough negotiations, as Lahadalia repeatedly objected to Indonesia exporting clean electricity to Singapore without receiving any reciprocal benefits.
The issue was resolved after Singapore agreed to help develop sustainable industrial zones in the Riau Islands, particularly in Bintan, Batam, and Karimun.
“I emphasized that we must carry out a cooperation that is mutually beneficial (for both countries). As we send electricity to Singapore, now, as part of the negotiations result, Singapore and Indonesia will work together to build industrial zones,” Lahadalia informed.
In addition to electricity exports and industrial zone development, Lahadalia and Leng agreed to explore cooperation on carbon capture and storage (CCS).
“Indonesia has the capacity for CCS, one of the largest in the world, even the largest in Asia-Pacific, because we have former oil wells and gas wells,” Lahadalia explained.
The agreement could result in US$30 billion to US$50 billion in investment in solar panel generators and US$2.7 billion in the manufacture of solar panels and batteries.
The agreement has the potential to open 418 thousand new jobs in manufacturing, construction, operations, as well as maintenance of solar panels and batteries.
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Translator: Putu Indah Savitri, Yashinta Difa
Editor: Primayanti
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