Singapore, Indonesia seek closer energy and sustainability cooperation to power up green ties

[JAKARTA] Singapore and Indonesia will do more together in energy and sustainability, with carbon credits, renewable energy and cross-border electricity projects highlighted as areas for future cooperation.

By working together, both countries can create new opportunities and strengthen regional resilience, Singapore’s Prime Minister Lawrence Wong said on Monday (Jul 6), after the annual Singapore-Indonesia Leaders’ Retreat in Jakarta.

Speaking at a joint press conference with Indonesian President Prabowo Subianto at Jakarta’s State Palace, PM Wong said energy and sustainability will be an area of future cooperation.

Separately, both countries also signed a new memorandum of understanding on carbon credits collaboration under Article 6 of the Paris Agreement during Monday’s retreat.

Under the agreement, Singapore and Indonesia will exchange information and technical expertise on carbon markets, and work towards an implementation agreement under Article 6.

Article 6 allows countries to cooperate voluntarily to meet their climate targets, including through the transfer of carbon credits generated from emissions-reduction projects.

“Tremendous potential” in renewable energy

Recent developments in the Middle East have also highlighted the importance of energy security and diversification, PM Wong said.

“Indonesia has tremendous potential in renewable energy, and Singapore would like to partner Indonesia in unlocking this potential,” he said.

To that end, the two countries are jointly constructing one of Indonesia’s largest solar projects in Morowali, he noted. Located in Central Sulawesi, Morowali is home to the Indonesia Morowali Industrial Park, a major industrial hub known for nickel-related industries and other energy-intensive activities.

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On Monday, agreements were also signed between Indonesia’s sovereign investment agency Danantara and Keppel Electric, Sembcorp Industries and Singapore Energy Interconnections.

“This will unlock a clean supply of electricity to power industries there,” PM Wong said. “We believe such a project is a win-win for both countries, and it will also be an important building block for a wider Asean Power Grid that will strengthen energy security across our region.”

The Asean Power Grid is a regional initiative to connect electricity systems across South-east Asia and promote multilateral power trade.

Confident in Indonesia’s future

The Leaders’ Retreat is the highest-level platform for Singapore and Indonesia to review bilateral ties and chart the direction of cooperation. Monday’s meeting was the second retreat between PM Wong and Prabowo, after the Indonesian leader’s state visit to Singapore in June 2025.

The Singapore delegation to Jakarta included Deputy Prime Minister Gan Kim Yong, Defence Minister Chan Chun Sing, Foreign Minister Vivian Balakrishnan, Social and Family Development Minister Masagos Zulkifli and Manpower Minister Tan See Leng.

Indonesian ministers who attended Monday’s retreat included Coordinating Minister for Economic Affairs Airlangga Hartarto, Foreign Minister Sugiono, Defence Minister Sjafrie Sjamsoeddin, and Energy and Mineral Resources Minister Bahlil Lahadalia.

PM Wong said the retreat was “a unique feature” of the Singapore-Indonesia relationship, and reflects the “special relationship” and “close ties” between the two nations.

The prime minister also expressed Singapore’s confidence in Indonesia’s long-term future.

“Singapore has every confidence in Indonesia’s future,” he said. “We want Indonesia to succeed because our futures are closely linked.”

Commercial links

That confidence is reflected in Singapore’s actions, PM Wong said, as Singapore has been “investing consistently in Indonesia over many years”.

“These investments are more than capital flows,” PM Wong said. “They create businesses, downstream industries, digital infrastructure opportunities and good jobs for Indonesians.”

He pointed to a flagship collaboration as an example of continued investor interest – the Kendal Industrial Park, or KIP, which will celebrate its 10th anniversary in November.

Launched in 2016, KIP is a joint venture between Sembcorp and Indonesian developer Jababeka. Bolstered by its Special Economic Zone status, the park has attracted 139 tenants, secured around US$11 billion in investments and created close to 77,000 jobs as at March. Its export value, meanwhile, has reached US$820 million.

PM Wong said the park has reached full capacity and will now expand by another 1,000 hectares.

In concluding his remarks, the prime minister said Singapore and Indonesia are trusted partners with a “shared stake” in each other’s success.

“Our partnership is deep, it’s forward-looking, and full of potential,” he said. “Together, we can create more opportunities than either of us could achieve alone.”

Next year, Singapore and Indonesia will celebrate 60 years of diplomatic ties.

Said PM Wong: “We also want to prepare ourselves to work closely with you and your team to mark this milestone, and to take Singapore-Indonesia ties to even greater heights.”