Agreements aim to boost clean energy trade, carbon capture and sustainable industrial development

JAKARTA, On 13 June 2025 Singapore and Indonesia have signed three Memoranda of Understanding (MOUs) to advance cross-border cooperation in clean energy and sustainability. The MOUs, covering Cross-Border Electricity Trade (CBET), Carbon Capture and Storage (CCS), and the development of a Sustainable Industrial Zone (SIZ), were signed in Jakarta by Singapore’s Minister in-charge of Energy and Science & Technology, Dr Tan See Leng, and Indonesia’s Minister for Energy and Mineral Resources, Dr Bahlil Lahadalia.

The signing marks a key step in strengthening bilateral efforts toward decarbonisation and green growth. Under the CBET MOU, both governments will work to establish the policies, frameworks, and business arrangements required to facilitate clean electricity trade between the two countries within the next 12 months.

The CCS MOU outlines plans to form a joint working group to develop a legally binding government-to-government agreement. This will provide the legal foundation for future cross-border CCS projects to be launched.

Meanwhile, the SIZ MOU will see the formation of a joint taskforce to explore green industrial development in Bintan, Batam, and Karimun (BBK). The MOU reflects both countries’ recognition of the importance of providing regulatory certainty for renewable energy projects, which will in turn create spin-off investments in Indonesia.

Minister Tan See Leng highlighted the importance of the partnership, stating, “This marks a significant milestone in our continued collaboration with Indonesia  under the Prabowo administration. The MOUs reflect both countries’ resolve to pursue impactful low-carbon and sustainability-focused initiatives. These win-win partnerships will support both countries in achieving a resilient and lowcarbon energy future, and generate new investments into green activities, while we do our part for global climate action.”

Further updates on implementation and project milestones will be provided by Singapore’s Ministry of Trade and Industry (MTI) in due course.

Source: MTI