The project, announced by Indonesia’s Ministry of Energy and Mineral Resources, includes the deployment of carbon capture and storage (CCS) technology through a separate agreement. Indonesian Energy Minister Bahlil Lahadalia stated: “The total investment in this project alone is already around $10 billion, and the important thing is that potential investors are already identified.” He highlighted that the production of solar panels and cables will expand opportunities in the solar energy market, while CCS technology will address challenges in decarbonizing industries.
The $10 billion initiative, supported by both governments, will unfold in three phases. The first phase focuses on solar panel manufacturing, the second on establishing CCS facilities, and the third on integrating manufacturing, technology, and logistics with low-carbon standards. The green industrial zone is expected to create tens of thousands of jobs, starting with solar panel production and battery energy storage operations. It is also projected to generate up to $6 billion annually in foreign exchange.
This agreement builds on recent clean energy collaborations between Indonesia and Singapore. Indonesia’s solar capacity reached over 700 MW in August 2024, according to the Institute for Essential Services Reform. Singapore’s solar capacity grew to 1,157 MW by the end of 2024, up from 919 MW the previous year, per the International Renewable Energy Agency. Research from the National University of Singapore in November 2024 suggests Singapore could achieve its 2 GW solar target by 2028, ahead of its 2030 goal.
The Riau Islands project strengthens regional efforts to advance renewable energy infrastructure, promote economic growth, and support sustainable energy solutions for both domestic and international markets.
