Renewable energy

Indonesia and Singapore Establish Integrated Green Industrial Zone in Riau Islands

Strategic Insights

Jun 16, 2025 — 1 min read

Indonesia and Singapore have taken a significant step towards promoting renewable energy and sustainable development by establishing an integrated green industrial zone in the Riau Islands, a strategic location near Singapore. The initiative was formally announced by Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, in a statement to the Antara news agency. The zone is designed to be a comprehensive ecosystem for clean energy, with a reliable energy supply ensured through cross-border clean energy electricity trading. A separate Memorandum of Understanding (MoU) will implement carbon capture and storage (CCS) technology to maintain low emissions.

Key Takeaways:

The integrated green industrial zone in the Riau Islands will be a model for low-carbon economic development, creating thousands of new jobs and driving the transfer of advanced technology.
The zone will have a total investment of around 10 billion USD, with potential investors already identified.
The establishment of the zone is part of a strategic cooperation agreement between Indonesia and Singapore, which was formalized through a MoU signed by the two countries' ministers and witnessed by their presidents.
The zone will produce key components such as solar panels and cables, adding value to the agreement and minimizing carbon footprint.
CCS technology will provide a solution for industries that face decarbonization challenges.
The zone will be built in Karimun and Bintan, strategically close to Singapore.

Statistics:

10 billion USD: The total investment in the integrated green industrial zone in the Riau Islands.
Thousands: The expected number of new jobs created by the zone's development.
16 June 2025: The date when the MoU was signed by Indonesia's Minister Bahlil Lahadalia and Singapore's Minister for Energy and Science and Technology Tan See Leng.

Sources:

Antara News Agency https://en.antaranews.com/news/183018/indonesia-oct-11-minister-calls-for-cooperation-to-develop-industrial-zone
Antara News Agency https://en.antaranews.com/news/183021/indonesia-oct-10-pas-holders-discuss-issues-with-s-tech-firm

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