Indonesia and Singapore focus on investment in solar PV and BESS

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Coordinating Minister for Maritime Affairs and Investment (Menko Marves) Luhut Binsar Pandjaitan signed a bilateral memorandum of understanding (MoU) with Singapore's Senior Minister and Coordinator of National Security Teo Chee Hean on renewable energy cooperation at the Indonesia-Singapore Leaders' Retreat in Singapore on Thursday (16/3/2023). (photo: Coordinating Ministry for Maritime Affairs and Investment)

Batam, gokepri – Indonesia and Singapore have signed an agreement on renewable energy collaboration aimed at boosting the development of renewable energy industries in Indonesia and strengthening energy ties between the two countries.

In a bid to meet the growing demand for renewable energy in Southeast Asia, Indonesia and Singapore have stepped up their collaboration on renewable energy. The latest agreement, signed during the Indonesia-Singapore Leaders’ Retreat in Singapore on Thursday, marks the third energy-related MoU between the two countries. The previous agreements, signed in 2020 and 2022, focused on energy cooperation and climate change and sustainability.

The latest MoU aims to facilitate investment in renewable energy manufacturing in Indonesia, including solar PV and Battery Energy Storage System (BESS). The investment will be used for electricity export projects to Singapore and the development of solar farms and BESS facilities in Indonesia.

The MoU was signed by Indonesian Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, and Singapore’s Senior Minister, Teo Chee Hean. According to Luhut, the collaboration will help Indonesia to develop its renewable energy industry and promote sustainable development.

“Through this renewable energy collaboration, both countries will facilitate investment for the development of renewable energy manufacturing in Indonesia,” said Luhut. “Cross-border electricity trade projects will also be conducted between Indonesia and Singapore.”

The collaboration aims to develop renewable energy manufacturing capabilities in Indonesia, from upstream to downstream, and facilitate the development of commercial frameworks and transmission infrastructure for cross-border electricity trade between the two countries. This will encourage capital inflows into Indonesia and promote the development of the renewable energy industry.

The MoU also aims to develop solar farms and BESS facilities to supply renewable energy to Indonesia and for export. The development of these facilities is expected to support the development of the Green Corridor in the Riau Islands and other potential areas in Indonesia.

The Indonesian and Singaporean governments are currently evaluating potential commercial proposals that meet the requirements of both countries. The chosen proposal will be announced in due time, but both governments remain open to receiving new proposals that meet their shared needs.

The renewable energy collaboration between Indonesia and Singapore is expected to bring many benefits, including the development of the renewable energy industry, the promotion of sustainable development, and the strengthening of energy ties between the two countries. With the increasing demand for renewable energy in Southeast Asia, this collaboration is a step in the right direction.

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