Indonesia, Singapore Partner on Green Industrial Zone in Riau Islands

6 hours ago 3

A view of solar panels that partially provide electrical power to the Grand Mosque of Istiqlal in Jakarta, March 26, 2024. REUTERS/Willy Kurniawan

TEMPO.CO, Jakarta - Indonesia and Singapore have agreed to collaborate on the development of an integrated Green Industrial Zone in the Riau Islands. Indonesian Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia and Singaporean Minister of Energy and Science & Technology of Singapore Tan See Leng signed an MoU on the Sustainable Industrial Zone at the ESDM Ministry office in Jakarta on Friday, June 13, 2025.

Bahlil said that this collaboration aligns with President Prabowo Subianto's order to foster mutually beneficial cooperation in the clean energy sub-sector. "We have asked the Singaporean government to seriously consider the development of industrial areas aimed at downstreaming based on new renewable energy," Bahlil said in Singapore on Monday, June 16, 2025, as quoted from the official statement.

The Green Industrial Zone is planned for Karimun and Bintan in the Riau Islands, locations chosen for their strategic proximity to Singapore. "The total investment, excluding other factors, is around US$10 billion. And most importantly, there are prospective investors," Bahlil added.

The government, he went on, hopes that the development of this Green Industrial Zone will serve as a model for low-carbon economic development, creating thousands of new jobs and driving advanced technology transfer. Consequently, downstreaming programs are an absolute requirement within this cooperation.

"The added value we will create is that the solar panel industry will be in Indonesia. Even for the cables, they will also be manufactured in Indonesia," Bahlil stated.

Furthermore, the Chairperson of the Golkar Party claimed that the development of these industrial areas in the Riau Islands is designed with a comprehensive ecosystem. Bahlil affirmed that energy supply will be guaranteed through cross-border clean energy-based electricity trade. To maintain low emissions, Carbon Capture and Storage (CCS) technology will also be implemented through a separate MoU in that field.

"This agreement opens up new market opportunities for national solar and geothermal energy, while CCS technology will provide a solution for industries that find it difficult to decarbonize," he concluded.

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