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RI-Singapore Cooperate To Build CCS Facilities To Green Industry

The government through the Ministry of Energy and Mineral Resources (ESDM) signed a memorandum of understanding with Singapore to develop environmentally friendly energy. ESDM Minister Bahlil Lahadalia said the signing of the MoU is expected to provide benefits for both countries and be a model for cooperation between other countries. "Today is a very historic day in a long process to show the commitment between the Singapore and Indonesian governments in cooperating on green energy," Bahlil said in his statement, Friday (6/13/2025). In particular, he continued, cooperation in clean energy electricity trade, carbon facilities, capture storage (CCS), to the development of green industrial areas in the Riau Islands. 

Indonesia and Singapore are working together through three MoUs, namely on sustainable industrial zones or SIZs, cross-border electricity interconnection and trade, renewable and low-carbon energy technology, energy efficiency and conservation and cross-border CCS MoU. 

According to Bahlil, the agreement reflects the determination to meet energy needs and achieve climate targets. "We send electricity to Singapore, now in the negotiation process. Later, the Singapore government together with Indonesia will build an industrial area," Bahlil explained. One of the highlighted collaborations is the sustainable industrial zone, which will encourage the development of green industrial areas, especially in Batam, Bintan, and Karimun, Riau Islands. The industrial area was built to attract renewable energy investment and support cross-border electricity trade. 

As an initial step, the formation of the SIZ taskforce was carried out with the Ministry of Energy and Mineral Resources as co-chair to ensure the realization of the scope of low-carbon and sustainable industries and supported by infrastructure and investment climate. The scope of the SIZ industry is low-carbon energy and battery storage, sustainable industry, supporting industry, logistics and other relevant sectors. This MoU is a strategic step to strengthen cooperation in the electricity sector. The cooperation is motivated by Singapore's desire to obtain a clean electricity supply from Indonesia, which will support the green industry in both countries. Another is reducing carbon emissions through the use of renewable energy. Meanwhile, the MoU on cross-border carbon capture and storage was carried out considering that Indonesia has abundant carbon storage potential in geological formations that have expired. 

Singapore needs a cross-border carbon storage option due to its geographical limitations. The cooperation will be the legal and technical basis for cross-border CO2 capture, transportation and storage based on international carbon accounting rules. 

Tag: Bahlil Lahadalia ESDM Green Industry Singapore