KUALA LUMPUR - Energy and Mineral Resources Minister, Bahlil Lahadalia said Indonesia’s plan to develop a green industrial zone in the Batam, Bintan and Karimun (BBK) area, supported by clean electricity cooperation with Singapore, is close to being finalised. 

He said the project is expected to attract high-tech industries and help Indonesia become an important part of the regional green energy supply chain.

The progress was discussed during his meeting with Singapore’s Manpower Minister and Minister in charge of Energy and Science & Technology, Dr Tan See Leng in Tokyo, Japan, on Sunday, where both sides talked about clean energy cooperation and cross-border power trade.

“I have received reports that the industrial zone is almost finalised. Later we will develop it in the Riau Islands region.

“I am currently getting more details. Once completed, then I think this is one of the progresses in the preparations,” he was quoted as saying in a statement issued by the ministry last Sunday.

Indonesia’s Energy and Mineral Resources Ministry said the plan to export clean electricity to Singapore is not only for trade, but also to attract high-tech investments.

The ministry said the government wants to use green energy supplies to encourage global companies to build factories and technology centres in the BBK area, turning it into a new green industrial hub.

In response, Tan said technical talks between both sides have progressed well, according to the statement.

During the meeting, both ministers also discussed plans to develop sustainable industrial areas in the BBK region while making sure Indonesia’s domestic electricity needs remain the priority before any exports.

Bahlil said Indonesia is also preparing to work with Singapore on low-carbon technologies, including carbon capture and storage (CCS).

“Regarding CCS, the regulations have already been prepared. That is something we can collaborate on,” he said.

He added that Indonesia has offered to supply electricity from solar power plants as part of its plan to develop 100 gigawatts (GW) of power capacity to meet local demand and possibly export to neighbouring countries.

He acknowledged that green energy is still more expensive than fossil fuel-based power.

Both ministers agreed that the cooperation shows stronger energy leadership in ASEAN, with pilot projects expected to begin soon in the BBK area, following three earlier agreements signed between the two countries.