REPUBLIKA.CO.ID, JAKARTA — Indonesia and Singapore have committed to a joint investment exceeding 10 billion US dollars, or approximately Rp162.7 trillion (at an exchange rate of Rp16,270 per US dollar), to advance environmentally friendly energy initiatives. The collaboration, formalized through the signing of three Memorandums of Understanding (MoUs), covers the development of a solar panel supply chain, patenting of carbon capture and storage (CCS) technology, and the creation of green industrial zones.
“The signing of these three MoUs between Indonesia and Singapore today will bring mutual benefits to both countries. The estimated investment required to implement this cooperation exceeds 10 billion US dollars,” said Minister of Investment Bahlil Lahadalia, following the MoU signing ceremony at the Coordinating Ministry for Economic Affairs office on Friday (13/6/2025), as quoted on Sunday (15/6/2025).
Bahlil emphasized that the scale of investment reflects both governments’ strong commitment to placing clean energy at the forefront of policy and business strategies in Southeast Asia.
In an official statement, the Ministry of Energy and Mineral Resources (ESDM) outlined the investment's division into three strategic focus areas. First is the large-scale development of solar panel infrastructure. Second is the investment in CCS facilities, positioning both nations as regional leaders in decarbonization technology. Third is the establishment of a green industrial estate integrating manufacturing, technology, and logistics supply chains under strict low-carbon emission standards.
“This investment injection is projected to be able to create a new economic ecosystem,” Bahlil added. “Tens of thousands of jobs will be created, from the manufacturing phase of panels and BESS (Battery Energy Storage System), to operations and maintenance.”
On the fiscal front, the Indonesian government anticipates a boost of up to 6 billion US dollars annually in foreign exchange, alongside hundreds of millions in state tax revenues.
To ensure implementation, both countries have formed the Cross-Border Renewable Energy Task Force (EBT), jointly led by Indonesia’s Minister of Energy and Mineral Resources and Singapore’s Minister for Trade and Industry. This joint body will be responsible for crafting the action plan, including technical frameworks, financing mechanisms, and governance models to ensure the long-term sustainability of the green industrial initiatives.
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