The agreement was announced following a bilateral meeting between President Prabowo Subianto and Singaporean Prime Minister Lawrence Wong at the Parliament House, Singapore, on Monday.
“What we are doing today is a long series of communications and negotiations between the two countries in order to build mutually beneficial cooperation,” Energy and Mineral Resources Minister Bahlil Lahadalia informed.
According to Lahadalia, Singapore has expressed its willingness to import clean electricity from Indonesia as well as explore cooperation in carbon capture and storage (CCS).
“However, emphasizing that the cooperation must be mutually beneficial, I asked the Singaporean government to consider developing an industrial area whose goal is for us to start downstreaming of renewable energy,” he said.
The cooperation was included in a memorandum of understanding (MoU) signed by Minister Lahadalia and Singapore’s Second Minister for Trade and Industry, Tan See Leng, on June 13, 2025.
The initial investment to carry out the cooperation is estimated to reach US$10 billion, not including the additional value of the development of the industrial area.
The industrial area is planned to be built in the Karimun, Bintan, and Batam special economic zone (SEZ), which lies directly adjacent to Singapore.
Lahadalia said that prospective investors have been prepared, and the legality of the project has also been examined by the Law and Human Rights Ministry.
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Translator: Andi Firdaus, Yashinta Difa
Editor: Arie Novarina
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