"Following the president's directive to build mutually beneficial cooperation, we have requested the Singaporean government to seriously consider developing an industrial zone aimed at downstreaming based on renewable energy," Bahlil noted in a statement to ANTARA from Jakarta on Tuesday.
The development of the integrated green industrial zone in the Riau Islands has become part of a strategic cooperation agreed upon by Indonesia and Singapore.
This commitment was symbolically formalized with the signing of a memorandum of understanding (MoU) on the Sustainable Industrial Zone by Indonesia's Minister Bahlil Lahadalia and Singapore's Minister for Energy and Science & Technology Tan See Leng, witnessed by President of the Republic of Indonesia Prabowo Subianto and Prime Minister of Singapore Lawrence Wong in Singapore on Monday (June 16, 2025).
The industrial zone is designed with a comprehensive ecosystem. Cross-border clean energy electricity trading will ensure a reliable energy supply.
Furthermore, a separate MoU in this field will implement carbon capture and storage (CCS) technology to maintain low emissions.
According to Bahlil, this agreement opens new markets for national solar and geothermal energy sectors.
Meanwhile, CCS technology will provide a solution for industries that face decarbonization challenges.
Bahlil stated that the government expects the development of the green industrial zone in the Riau Islands to serve as a model for low-carbon economic development that can create thousands of new jobs and drive the transfer of advanced technology.
Bahlil elaborated that downstreaming is an essential requirement for this cooperation.
He confirmed that as part of the agreement, industries producing key components, such as solar panels and cables, will be established in Indonesia.
"We will establish the solar panel industry in Indonesia, adding value to the agreement. Even the cables will be built in Indonesia," Bahlil remarked.
He expressed optimism that this project will run smoothly, as it has been meticulously prepared.
The industrial zone will be built in Karimun and Bintan, strategically close to Singapore.
"The total investment in this project alone is already around 10 billion USD, and the important thing is that potential investors are already identified," Bahlil remarked.
The signing ceremony in Singapore was the culmination of intensive technical discussions between the two countries' teams.
This agenda was also part of high-level bilateral meetings, including a leaders' retreat, emphasizing Indonesia's priority on realizing investments in the green energy sector.
Minister Bahlil and Minister Tan earlier inked three MoUs related to the development of environmentally friendly energy between the two countries, which took place on Friday (June 13, 2025) at the Ministry of Energy and Mineral Resources office in Jakarta.
These energy cooperation agreements are detailed in three MoUs: the Sustainable Industrial Zone (SIZ) MoU, the Cross-Border Electricity Interconnection and Trading, Renewable and Low Carbon Energy Technologies, and Energy Efficiency and Conservation MoU; and the Cross-Border Carbon Capture and Storage Cooperation MoU.
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Translator: Putu, Azis Kurmala
Editor: Primayanti
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