Singapore to Invest USD 9.2 billion in Renewable Energy and Logistics in Indonesia

Feb 2022

In January 2022, Singapore and Indonesia signed an MOU on Bilateral Partnership on Green and Circular Economy Development, and an MOU on Energy Cooperation. With these MOUs in place, Singapore will be investing USD 9.2 billion to support green investment and build a logistics port hub in Indonesia. The money will fund renewable energy projects in Batam, Riau Islands province, and in Sumba island and West Manggarai in East Nusa Tenggara province, as well as the development of a logistics hub in Jakarta’s Tanjung Priok port, the country’s largest and busiest seaport.

The two countries also hope to enhance their cooperation in the provision of low-carbon energy, through the facilitation of cross-border electricity trading and financing of low-carbon energy infrastructure.

The Indonesian government remains steadfast in its priorities for investment in the renewable energy sector to support green economy progress and sustainable development. At the same time, Singapore has also targeted to import approximately 30% of low-carbon electricity by 2035, with Indonesia possibly being one of its suppliers.

In line with this, in October 2021, two Singaporean companies have signed joint development agreements (JDA) with Indonesian businesses for the purchase of solar energy. The first JDA was between Sembcorp Industries, PT PLN Batam and PT Trisurya (Suryagen), while the second JDA was between Medco Power Indonesia, Pacific Light Power (PLP), and Gallant Venture.

(Source: The Straits Times)

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