JAKARTA, RAKYAT NEWS – A landmark agreement between Indonesia and Singapore is set to create significant job opportunities in the renewable energy sector, according to the Institute for Essential Services Reform (IESR).

The deal focuses on developing sustainable industrial zones in the Riau Islands, which will drive growth in solar and battery manufacturing industries.

IESR Executive Director Fabby Tumiwa stated that the collaboration will generate employment in Indonesia’s renewable energy sector. While modern solar panel production relies on automation, the project will stimulate supporting industries, leading to broader job creation.

The agreement includes exporting 3.4 gigawatts (GW) of clean electricity from Indonesia to Singapore by 2035. Fabby highlighted that this will bring foreign exchange earnings and attract investments in renewable energy infrastructure, with long-term economic benefits spanning two decades.

The partnership supports Indonesia’s target of achieving a 23% renewable energy mix by 2030, increasing to 46% by 2045. The phased implementation of solar projects and battery storage systems between 2028 and 2032 will play a crucial role in meeting these objectives.

On June 13, Indonesia’s Energy Minister Bahlil Lahadalia and Singapore’s Trade Minister Tan See Leng formalized the deal through a memorandum of understanding (MoU). The agreement covers clean energy exports, sustainable industrial zones in Bintan, Batam, and Karimun, and carbon capture and storage (CCS) cooperation.

The project is expected to attract $30–50 billion in solar power plant investments and an additional $2.7 billion for solar panel and battery manufacturing. These investments will enhance Indonesia’s position in the global green energy market.

An estimated 418,000 new jobs will be created across manufacturing, construction, and maintenance sectors. This aligns with Indonesia’s push for sustainable industrialization and workforce development.

The deal marks a significant step in regional cooperation, positioning Indonesia as a key player in Southeast Asia’s renewable energy transition. IESR praised the agreement as mutually beneficial, fostering green industrial growth.

With the MoU in place, both nations will proceed with detailed planning and implementation. The project is expected to serve as a model for future cross-border renewable energy partnerships in the region.

This collaboration underscores Indonesia’s commitment to sustainable development while opening new economic and employment opportunities in the renewable energy sector. (Uki Ruknuddin)

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