Singapore and Indonesia Sign MOUs for Closer Cooperation in Renewable Energy and Digital Economy

On 16 March 2023, it was announced that Singapore and Indonesia will work more closely in the areas of renewable energy and digital economy and both countries have entered Memoranda of Understandings ("MOUs") in this regard.

Renewable Energy

Both countries signed an MOU on Renewable Energy Cooperation, under which both countries will develop a cooperative institutional framework to facilitate investments in the development of renewable energy manufacturing industries in Indonesia and cross-border electricity trading projects between Indonesia and Singapore, including:

1. Facilitating investments to develop upstream and downstream renewable energy manufacturing industries and capabilities in Indonesia, building on investments for electricity export projects to Singapore;
2. Supporting the development of solar farms and Battery Energy Storage Systems (BESS) to supply renewable energy into Indonesia and for energy export;
3. Promoting investments to attract industries using renewable energy into Green Corridors in Indonesia; and
4. Facilitating commercial arrangements and creating frameworks and transmission infrastructure for cross-border electricity trading between both countries, which would create capital inflows into Indonesia.

This MOU builds on the Energy Cooperation between Indonesia and Singapore that was signed last year, and the MOU on Climate Change and Sustainability signed in March 2022.

Digital Economy

Singapore and Indonesia also signed an MOU on Singapore-Indonesia Tech:X Programme, which establishes the Tech: X Programme. This Programme is aimed at, among others, growing young tech talent and developing the tech ecosystems in both countries. More details on the Tech:X Programme will be released in due course. Various partnership documents relating to the digital economy, including healthtech and edtech, were also signed between Singapore and Indonesia companies.

The MOUs represent the strong belief that Indonesia and Singapore have in the deep synergies and strategic and economic value of renewable energy and digital economy initiatives between the two countries.