The Governments of Indonesia and Singapore are advancing bilateral cooperation on clean energy following the Leaders’ Retreat held in Jakarta on July 6, 2026. During the summit, the government announced 26 cooperation outcomes, including a carbon credit framework under Article 6 of the Paris Agreement, a roadmap for cross-border electricity trade, and commercial agreements supporting projects initiated under the energy memorandums of understanding (MoUs) signed in 2025. The agreements are aimed at accelerating regional energy transition and expanding bilateral cooperation in low-carbon energy.
The cooperation is expected to facilitate cross-border electricity trading between the two countries, supporting Singapore’s plan to import around 6 GW of low-carbon electricity by 2035 to meet its climate and energy security objectives. Singapore has deployed approximately 2 GWp of solar capacity and increased its domestic solar target to 3 GWp by 2030 but continues to face land constraints for renewable energy development. Indonesia, with its abundant renewable energy resources and extensive land availability, is positioned as a key supplier under the proposed regional electricity trading framework.
Indonesia’s Government Regulation No. 40/2025 on the National Energy Policy targets new and renewable energy contributing 19–23 per cent of the country’s primary energy mix by 2030 and 70–72 per cent by 2060. The article notes that the bilateral partnership should support domestic industrial development through investment, job creation, technology transfer, and capacity building, in addition to electricity exports. It also highlights that securing public trust and delivering tangible socio-economic benefits will be critical to successfully implementing the clean energy cooperation initiatives.