Indonesia and Singapore have taken a major step toward strengthening their economic partnership by launching new joint initiatives focused on renewable energy and digital infrastructure. The agreements were announced following the 16th Singapore-Indonesia Six Bilateral Economic Working Groups Ministerial Meeting held in Jakarta. The collaboration aims to support sustainable development, attract investment, and enhance regional economic growth.
One of the most significant developments is a large-scale solar power project planned at the Indonesia Morowali Industrial Park in Central Sulawesi. The project is being developed through a partnership between Singapore-based Sembcorp Utilities, Indonesian renewable energy company PT Sumber Energi Surya Nusantara, and the Indonesia Investment Authority. With an estimated investment of around USD 210 million, equivalent to approximately IDR 3.5 trillion, the project is expected to become one of Indonesia’s largest utility-scale solar installations.
The facility will have a solar generation capacity of 200 megawatts and will be supported by an 80 megawatt-hour battery energy storage system. The project is scheduled to begin operations in early 2027. Once completed, it will provide a stable and reliable source of clean electricity to industrial operations within the Morowali Industrial Park, helping industries reduce their dependence on conventional energy sources while supporting Indonesia’s renewable energy goals.
Alongside renewable energy cooperation, both countries are also increasing efforts to develop digital infrastructure, particularly in the Sumatra and Riau Islands region. The governments have agreed to conduct a joint study to explore opportunities for transforming the Batam, Bintan, and Karimun area into a major digital hub. The study will identify potential areas for growth and support future investments in technology infrastructure.
The initiative is supported by ongoing expansions in the data center sector. In Batam, the Nongsa Special Economic Zone continues to attract investments, while companies such as DayOne and PT Equator Gate System are developing new data center projects. Meanwhile, DCI Indonesia is expanding its operations in Bintan to meet rising demand for cloud computing and artificial intelligence services. Authorities are also exploring ways to integrate Singapore, Johor, and Riau into a connected regional network of data centers.
The cooperation extends beyond solar and digital projects. In North Sumatra, Singapore-based CRecTech has signed a memorandum of understanding with a renewable energy subsidiary of Indonesia’s state-owned energy company Pertamina. The agreement focuses on developing Indonesia’s first biogas-to-bio-methanol pilot plant. These initiatives highlight Singapore’s continued role as a leading investor in Indonesia while supporting clean energy development, digital transformation, supply chain resilience, and long-term economic growth across the region.
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