Singapore, Indonesia sign three MOUs for energy trade, decarbonisation, sustainability collaboration
They reflect the countries’ resolve to pursue impactful low-carbon and sustainability-focused initiatives, says Dr Tan See Leng
[SINGAPORE] Singapore and Indonesia on Friday (Jun 13) signed three memorandums of understanding (MOUs) on cross-border electricity trade, carbon capture and storage, and a sustainable industrial zone.
Singapore’s Minister-in-charge of Energy and Science and Technology Tan See Leng and Indonesia’s Minister for Energy and Mineral Resources Bahlil Lahadalia signed the agreements during the former’s visit to Jakarta.
The MOUs mark a shared commitment “to create win-win partnerships to enable clean energy transition, facilitate industrial decarbonisation and generate investments into the development of sustainability-related activities”, said the Ministry of Trade and Industry (MTI) in a statement.
The electricity trade MOU builds on previous collaboration between the two countries. MTI and Indonesia’s Ministry of Energy and Mineral Resources (ESDM) aim to facilitate the policies, regulatory frameworks and business arrangements needed to implement such cross-border trade within the next year.
A joint working group set up under the carbon capture and storage MOU will study components of a legally binding government-to-government agreement in this area. Such an agreement will be necessary for the implementation of cross-border carbon capture and storage projects, noted MTI.
Finally, under the MOU for a sustainable industrial zone, a joint task force established by MTI and ESDM will study the development of potential industries within the zone in Bintan, Batam and Karimun. This agreement reflects the countries’ recognition of the importance of providing regulatory certainty for renewable energy projects, which will in turn create spin-off investments in Indonesia, said MTI.
Calling the MOUs a “significant milestone” in Singapore’s continued partnership with Indonesia under President Prabowo Subianto’s administration, Dr Tan said: “The MOUs reflect both countries’ resolve to pursue impactful low-carbon and sustainability-focused initiatives.”
Prabowo is slated to visit Singapore on Jun 16 to attend a leaders’ retreat, where he is expected to meet Prime Minister Lawrence Wong and President Tharman Shanmugaratnam.
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