Indonesia's Minister of Energy and Mineral Resources and Singapore's Second Minister for Trade and Industry signed a Memorandum of Understanding (MoU) on low-carbon energy cooperation and cross-border electricity interconnection between Indonesia and Singapore at the Ministry of Energy and Mineral Resources office on Friday, September 8th. The signing of the MoU, addresses cooperation in electricity trade with a low carbon focus. This is also a continuation of the ASEAN Meeting in Bali, and it will enhance interconnectivity in ASEAN.
Furthermore, the areas of cooperation agreed upon in the MoU include the development of commercial low-carbon energy projects, including interconnections for cross-border electricity trade between Indonesia and Singapore, as approved by the governments of Indonesia and Singapore; the exchange of information on policies and regulatory approvals and frameworks to enable commercial cross-border electricity trade projects; facilitating the development of cross-border electricity trade projects, including carbon credits in accordance with respective regulations; other areas of cooperation to be mutually decided upon by the Parties.
This MoU will be valid for five years and can be extended for another five years. This energy-related MoU complements a previous MoU signed between the Ministry of Energy and Mineral Resources of Indonesia and Singapore's Ministry of Trade and Industry (MTI) on January 21, 2022. The areas of cooperation covered by the previous MoU include the development of low-carbon energy technologies (solar PV, hydrogen, and CCS/CCUS); the development of regional electricity networks, cross-border interconnections, and energy trade; project financing facilitation; and human resource development related to energy. The execution of the MoU related to power interconnection is still awaiting a request from Singapore, which will then be consolidated with PT. PLN (Persero) for transmission management and PLN will be responsible for transmission management to ensure a streamlined process.
