In March, the Governments of Indonesia and Singapore signed a Memorandum of Understanding (MOU) on Renewable Energy Cooperation. The MOU seeks to establish a cooperative institutional framework that will bolster Indonesia’s renewable energy manufacturing industries and capabilities, including solar photovoltaics (PV) and Battery Energy Storage Systems (BESS). These projects will supply Indonesia with renewable energy for domestic use and for energy export, including when viable, hydrogen and ammonia.
Additionally, the MOU will facilitate commercial arrangements and develop transmission infrastructure to allow cross-border green electricity trade between Indonesia and Singapore. Both signatories are reviewing promising commercial proposals under the MOU. One of the agreed projects is to utilize Green Corridors, which includes industrial hubs and smart cities in Indonesia’s Riau Islands. The Green Corridor is estimated to draw US$50 billion of foreign direct investments on green industry.
Members of the Sustainable Energy Association of Singapore (SEAS), which include carbon exchanges, renewable power producers, infrastructure companies and battery makers, signed the MOU at the 2023 Leaders’ Retreat to work on the Green Corridor project. This MOU builds on previous MOU on Energy Cooperation and MOU on Climate Change and Sustainability inked in March 2022. Similar MOUs include Vietnam and Singapore’s MOU on Green-Digital Economic Partnership which was signed in February of this year.
