Indonesia and Singapore sign MOUs to advance sustainability, cross-border energy trade, and carbon management

23 June 2025

On 13 June 2025, the Indonesia Ministry of Energy and Mineral Resources (“MEMR”) announced that the Governments of Indonesia and Singapore have signed the following memoranda of understanding (“MOUs”):

• Sustainable Industrial Zones (“SIZ”);
• Cross-Border Electricity Interconnection and Trading, Renewable and Low-Carbon Energy Technologies, and Energy Efficiency and Conservation (“Cross-Border Electricity Trade”); and
• Cross-Border Cooperation in Carbon Capture and Storage (“Cross-Border CCS”).

The SIZ MOU encourages the development of green industrial areas, particularly in the Batam, Bintan, and Karimun regions of Indonesia’s Riau Islands. These zones are intended to attract investment in new and renewable energy and support cross-border electricity trade. The scope of the MOU includes low-carbon energy, battery storage, sustainable industries, supporting industries, logistics, and other relevant sectors.

The Cross-Border Electricity Trade MOU is driven by Singapore’s interest in sourcing clean electricity from Indonesia. This MOU supports the green industry in both countries and contributes significantly to reducing carbon emissions through the use of renewable energy.

The Cross-Border CCS MOU recognises Indonesia’s abundant carbon storage potential in geological formations that have reached the end of their operational life. This MOU will also aid Singapore by providing cross-border carbon storage options. It sets out the legal and technical framework for cross-border carbon capture, transport, and storage, based on international carbon accounting rules.

The conclusion of these MOUs demonstrates Indonesia and Singapore’s strong commitment to meeting the energy needs and achieving the climate goals of both countries, while also promoting shared prosperity and regional sustainability. The MOUs provide mutual benefits and are expected to serve as a model for other regional cooperation initiatives.

On 16 June 2025, Singapore and Indonesia underscored their ongoing cooperation with a Milestone Ceremony for Project Development. The ceremony represented the countries’ shared commitment to implement the MOUs.

Reference materials

The MEMR press release on the conclusion of the MOUs is available in Indonesian on its website www.esdm.go.id by clicking here.

A press release issued by the Indonesia Ministry of State Secretariat on the Milestone Ceremony is available on its website www.setneg.go.id by clicking here.