Spore-Indonesia Green Deals Must Deliver Real Gains for Lasting Success

Translating political will into transparent action key to setting the tone across Asean

- Arlina Arshad

JAKARTA – The recently concluded Leaders' Retreat has opened a fresh chapter in bilateral ties between Singapore and Indonesia, with climate action and the green economy at the heart of their future cooperation.

Singapore Prime Minister Lawrence Wong and Indonesian President Prabowo Subianto hailed new initiatives focused on sustainable industrial zones, cross-border electricity trade, and carbon capture and storage as a milestone in sustainable energy cooperation.

However, analysts cautioned that lasting success would depend on both nations moving beyond transactional arrangements to deliver equitable and long-term benefits.

The first agreement centers on developing industrial zones, likely in Batam, Bintan, or Karimun islands near Singapore, that will host green manufacturing powered by renewable energy and regulated by environmental standards aligned with international norms.

The second formalizes cross-border electricity trade, supporting Singapore's goal of importing up to six gigawatts of low-carbon electricity—about 30 per cent of its power needs—by 2035. The energy, expected to come from solar or wind farms in Sumatra or Kalimantan, will be transmitted via undersea cables.

The third initiative enables carbon capture and storage (CCS), allowing emissions from Singapore's refineries and industrial facilities to be transported and stored in depleted oil and gas fields in Indonesia. This could position Indonesia as a regional hub for carbon storage.

Analysts described the green partnership as a natural fit. Singapore, though limited in land and natural resources, brings capital and technological know-how. Indonesia, by contrast, is rich in ecological assets—from rainforests and minerals to solar and hydropower potential—that are key to the global energy transition.