Singapore and Indonesia are taking bold steps together to shape the future of green industry in Southeast Asia. The two countries have officially signed a Memorandum of Understanding (MoU) to develop a Sustainable Green Industrial Zone in the Riau Islands Province, a project that is expected to attract significant investment, create jobs, and lead a low-carbon economic transformation.
The MoU was signed by Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, and Singapore’s Minister for Manpower and Second Minister for Trade and Industry, Tan See Leng. The signing took place in Singapore on Monday, June 16, 2025, and was witnessed by Indonesian President Prabowo Subianto and Singapore’s Prime Minister Lawrence Wong.
Bahlil emphasized that this partnership aligns with President Prabowo’s vision to establish mutually beneficial cooperation in the clean energy sector. “Following the President’s directive to build win-win cooperation, we have asked the Singapore government to seriously consider developing an industrial zone aimed at downstreaming based on renewable energy,” Bahlil explained on Tuesday, June 17, 2025.
The green industrial zone is designed with a complete and integrated ecosystem. Its energy supply will rely on cross-border electricity trading using clean energy sources. To maintain low carbon emissions, the project will also apply Carbon Capture and Storage (CCS) technology, which will be further detailed in a separate MoU focused on that sector.
Bahlil underlined that the collaboration will open new markets for Indonesia’s solar and geothermal energy. He also pointed out that CCS technology offers crucial solutions for industries that are difficult to decarbonize.
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The green industrial zone in Kepri is expected to become a leading model for low-carbon economic development in Indonesia. The project aims to create thousands of new jobs and accelerate the transfer of advanced technologies.
“The added value we will build is that the solar panel industry will be established in Indonesia. Even the cable industry will also be developed here,” Bahlil confirmed, noting that the downstreaming process is a mandatory part of the cooperation.
Bahlil expressed strong confidence that the project is ready to move forward. “This industrial zone will be jointly developed in Karimun and Bintan to ensure proximity to Singapore. The total investment beyond this project is already around USD 10 billion, and most importantly, we already have prospective investors,” he said.
The agreement signed in Singapore marks the peak of intensive technical discussions between both countries. It also forms part of high-level bilateral meetings, including the Leaders’ Retreat, which highlights Indonesia’s priority to attract investment in the green energy sector, especially in the green industrial zone in Riau Islands.
