Indonesia Commits to Supplying 2 GW of Green Electricity to Singapore


Indonesia has taken a significant step by officially committing to supply Singapore with “green electricity,” a pivotal development encapsulated in a Memorandum of Understanding (MoU) inked between Indonesia’s Ministry of Energy and Mineral Resources (ESDM) and Singapore’s Ministry for Trade and Industry.

This momentous agreement has been duly confirmed by the Indonesian government, as proclaimed through the Coordinating Ministry for Maritime Affairs and Investment, known as Kemenko Marves.

Underlining this achievement is Rachmat Kaimuddin, the Deputy Coordinator for Transportation and Infrastructure at Kemenko Marves, who has unveiled that Singapore’s electricity demand is anticipated to reach a staggering 4 Gigawatts (GW). Notably, the agreement designates Indonesia as the primary source, vowing to supply at least 50% of this substantial electricity requirement, which equates to a formidable 2 GW.

Kaimuddin elaborated on this endeavor during the Indonesia Sustainability Forum (ISF) Press Conference held at the prestigious Park Hyatt in Jakarta on September 8, 2023. He shared insights into Singapore’s ambitious vision, projecting their procurement of 4 GW AC of green electricity generated from solar power.

This translates to six times the gigawatt peak capacity, with Indonesia already securing approval for an allocation of approximately 50% of this colossal requirement.

Furthermore, Kaimuddin envisaged the commencement of electricity exports from Indonesia to Singapore to take place within the timeframe of 2026 to 2027. This forward-looking perspective sets the stage for a substantial leap in cross-border energy collaboration.

The origins of this groundbreaking electricity trade pact trace back to the formal signing of the MoU between Indonesia’s Minister of Energy and Mineral Resources, Arifin Tasrif, and Singapore’s Second Minister for Trade and Industry, Tan See Leng. The momentous occasion unfolded at the offices of the Ministry of Energy and Mineral Resources on September 8, 2023.

The MoU encapsulates a comprehensive range of agreements, all geared towards fostering low-carbon energy cooperation and facilitating cross-border electrical interconnection between the two nations.

This development is not isolated but is a part of the broader ASEAN Meeting’s momentum, held previously in Bali. It is poised to elevate connectivity levels within the ASEAN community and beyond.

While there is a strong indication that Singapore’s electricity requirement from Indonesia may potentially amount to 2 GW, as noted by Dadan Kusdiana, the Secretary-General of the Ministry of Energy and Mineral Resources, there is no absolute certainty regarding the precise figures at this juncture. Dadan emphasized the need for formal confirmation, especially concerning the mechanisms of procurement and investment.

Importantly, the agreed-upon MoU carries a significant temporal dimension. It is slated to remain in effect for an initial period of five years, with provisions for possible extensions into the subsequent five-year periods.

This temporal flexibility reflects the long-term commitment both nations are making towards this pivotal energy partnership, signaling a new era of sustainable cooperation in the energy sector.

In essence, this landmark agreement is a testament to Indonesia’s burgeoning role as a key player in the regional energy landscape and signals a mutual commitment to green and sustainable energy practices, which will undoubtedly have far-reaching implications for both nations and the broader ASEAN community.