TEMPO.CO, Jakarta - The recent agreement between Indonesia and Singapore concerning renewable energy development is projected to generate 418,000 jobs and attract investments totaling up to US$50 billion. This Memorandum of Understanding (MoU) was formally signed on Friday, June 13, 2025, by Indonesian 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 agreement includes the export of 3.4 gigawatts (GW) of clean electricity to Singapore by 2035, the establishment of sustainable industrial zones in Bintan, Batam, and Karimun, and cooperation in carbon capture and storage (CCS).
Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR), stated that this project presents opportunities for workforce absorption within Indonesia's renewable energy sector. "The production of modern solar cells and modules is automated and robot-driven, so it (job creation) is not substantial. But, the existence of such an industry will trigger a supply chain and supporting industries, thereby generating more jobs," Fabby explained to Antara in Jakarta on Saturday.
He further noted that the certainty of demand stemming from this project will stimulate the domestic solar module, battery, and related supporting industries.
Fabby also highlighted the additional foreign exchange benefits for Indonesia from exporting green electricity to Singapore. "The most obvious benefit is the ability to secure investments in renewable energy generation and earn foreign exchange as we sell green electricity to Singapore for 20 years from the start of operations," he said.
According to him, this initiative also contributes to Indonesia's renewable energy mix targets of 23 percent by 2030 and 46 percent by 2045. "But the 23 percent target does not solely depend on this agreement. As far as I know, an additional 3.2 GW (AC) / 17 GWp (DC) and 35.7 GWh of Battery Energy Storage Systems (BESS) will be gradually integrated between 2028 and 2032," Fabby clarified.
He welcomed the cooperation as a positive step towards strengthening the development of renewable energy and the national green industry. "With the MoU signed yesterday, and considering Minister Bahlil's previous statements, this can be a beneficial agreement," he concluded.
The projected investments include US$30-50 billion for solar panel construction and US$2.7 billion for solar panel and battery manufacturing.
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