Indonesia Signs Strategic Energy and Tech Pacts with Singapore and India

Indonesia expanded its regional strategic partnerships through separate agreements with Singapore and India focused on energy, technology, and defense. During a leaders' retreat in Jakarta on July 6, Indonesia and Singapore signed pacts to strengthen cross-border electricity trade and decarbonization, targeting at least 3.4GW of projects by 2035. The Indonesian sovereign wealth fund, Danantara, is leading these initiatives through memoranda of understanding with Singaporean firms Keppel Electric, Sembcorp Utilities, and Singapore Energy Interconnections. However, the Indonesian Ministry of Energy and Mineral Resources noted that electricity pricing negotiations remain ongoing as the government maintains regulatory authority over price setting.

Separately, Narendra Modi and President Prabowo Subianto announced an agreement to link India's Unified Payments Interface (UPI) with Indonesia's digital payment infrastructure to accelerate cross-border transactions. During the Indian Prime Minister's three-day visit, the two nations also signed strategic agreements for the supply of BrahMos supersonic cruise missiles and the development of digital electronic voting machines for Indonesia's 2029 elections.

Economic and security cooperation further expanded through a joint venture between the Steel Authority of India Ltd. and PT Krakatau Steel to build a stainless-steel facility. The two countries also established maritime safety initiatives between their respective coast guards and medical product regulatory cooperation. Additionally, India expressed interest in partnering to develop Sabang Port to improve access to the Malacca Strait.