Jakarta (ANTARA) - Indonesia is ready to export 2 gigawatts of clean, low-carbon electricity to Singapore with the signing of a memorandum of understanding (MoU) between Indonesian and Singaporean companies.
The MoU signing was witnessed by the deputy for infrastructure and transportation coordination at the Coordinating Ministry for Maritime Affairs and Investment, Rachmat Kaimuddin, and Singaporean Deputy Minister of Trade and Industry, Tan See Leng, at the Indonesia Sustainability Forum in Jakarta on Friday.
"We hope that this collaboration will bring opportunities for Indonesia to become a major player as a global hub for the solar photovoltaic (PV) industry and provide more alternatives for the solar PV supply chain in the world," Kaimuddin said.
Singapore will import 4 gigawatts of low-carbon electricity by 2035 — 50 percent of which will come from Indonesia, he informed.
According to him, the cooperation between Indonesia and Singapore involves a framework for enabling commercial projects to develop carbon energy and cross-border electricity trade and interconnection between the two countries.
Deputy Minister Leng said that the MoU is proof of a long-term and comprehensive partnership.
"Such projects involve quite large investments and will strengthen trade relations between Indonesia and Singapore," Leng noted.
The Indonesian companies that will be involved in the low-carbon electricity export are the Pacific Medco Solar Energy consortium, PT Adaro Clean Energy Indonesia, and PT Energi Baru TBS.
The Singaporean companies are Seraphim Solar System, Long Solar Technology, IDN Solar, Sungrow, and PT Huawei Tech Investment.
Collectively, the companies have proposed to install around 11 gigawatts of solar PV capacity and 21 gigawatts of battery energy storage in Indonesia.
In March 2023, the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, signed a bilateral MoU with Singapore's Senior Minister and Coordinating Minister for National Security, Teo Chee Hean, on renewable energy cooperation.
The two countries will support investment for the development of renewable energy manufacturing capabilities from upstream to downstream in Indonesia, including solar PV and battery energy storage systems (BESS), and the utilization of investment for electricity export projects to Singapore.
They will also support the development of solar farms and BESS to supply renewable energy to Indonesia and for energy exports.
The development will also include green electricity export destinations as well as hydrogen and ammonia using solar panels and BESS built in Indonesia.
Indonesia and Singapore are working together to support commercial arrangements and develop the infrastructure framework and transmission to support inter-border electricity trade between them, which will encourage capital flows to Indonesia.
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