Indonesia’s newly established sovereign wealth fund, Danantara, is planning to take part in a major renewable energy partnership with Singapore. The large-scale project is focused on solar power generation and cross-border electricity transmission, with an estimated investment of around US$30 billion.
The announcement was made by Pandu Sjahrir during the Fitch Ratings Annual Indonesia Conference held in Jakarta. He highlighted that global and regional investors are showing strong interest in green energy projects, especially those involving large-scale infrastructure and long-term sustainability. According to him, the initiative will include the development of vast solar farms and a subsea transmission network that will connect Indonesia and Singapore.
The proposed solar installations are expected to be among the largest in the ASEAN region. However, the project is not only aimed at exporting electricity. Danantara plans to ensure that the investment also benefits Indonesia’s domestic energy sector. This includes building transmission infrastructure within the country and promoting the development of a local solar manufacturing industry. By encouraging domestic production of solar panels and related equipment, the government aims to create employment opportunities and support industrial growth.
The project is also aligned with the broader national agenda under Prabowo Subianto, which focuses on energy security, sustainable economic growth, and strengthening downstream industries. It builds on earlier discussions and commitments made during the Indonesia Sustainability Forum, where clean energy development was highlighted as a key priority.
Despite the strong momentum, several aspects of the project are still under discussion. Technical details, financing structures, and cooperation frameworks are yet to be finalized. Some private companies have already entered preliminary agreements with Singaporean authorities, and Danantara is now looking to position itself as a strategic partner within these plans. Its role is expected to help align private sector investments with Indonesia’s long-term energy and economic goals.
If completed, the Indonesia-Singapore electricity link could become a landmark project in Southeast Asia’s clean energy transition. It is seen as a step toward building a regional power grid that allows countries to share renewable energy resources more efficiently. For Indonesia, the project represents not only an opportunity to export clean electricity but also a strategic move to strengthen its role in the global green economy while deepening cooperation with Singapore.
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