Five-year export permit reviews are complicating funding for\nmulti-billion-dollar Batam solar projects<\/p>\n
Indonesia\u2019s plan to export solar power from Batam to Singapore is\nfacing a serious financing hurdle, raising doubts over whether the first\nprojects can begin delivering electricity on schedule.<\/p>\n
Permit Rules Are Creating Financing Problems<\/p>\n
Several Indonesian and multinational firms were selected under\nSingapore\u2019s conditional approval process to develop solar farms in Batam\nand export low-carbon electricity to Singapore, building on energy\ncooperation MOUs signed in 2023 and later progress announced in 2024.\nHowever, these projects are struggling to secure financing because\nIndonesia requires renewable electricity export permits to be reviewed\nevery five years under Clause 37 of its 2021 electricity business\nregulation. Analysts and company executives say that mismatch makes\nlong-term funding difficult for projects that need revenue certainty for\nroughly 20 to 25 years.<\/p>\n
Why Banks Are Hesitating<\/p>\n
Large solar export projects from Batam would require billions of\ndollars in investment for solar farms, battery storage, and subsea\ntransmission cables. Under the current licensing framework, exporters\nface the risk that permits could later be reduced or revoked if the\ngovernment determines domestic electricity supply is affected, even\nthough Batam itself generally has a power surplus. That uncertainty is a\nmajor reason developers describe the projects as effectively\n\u201cunbankable.\u201d<\/p>\n
Singapore Has Expanded Approvals<\/p>\n
Singapore\u2019s Energy Market Authority first gave conditional approvals\nin 2023 for five Indonesia-linked projects totaling 2GW of imports, then\nannounced in September 2024 that two more projects would add 1.4GW,\nbringing the pipeline to as much as 3.4GW from Indonesia. In 2025, EMA\nalso granted a conditional licence to Singa Renewables, the\nRGE-TotalEnergies joint venture, to import up to 1GW of solar power from\nIndonesia, showing that Singapore has continued moving ahead on its side\nof the arrangement.<\/p>\n
Timeline Pressure Is Growing<\/p>\n
Analysts say the projects should already be under major construction\nif they are to start commercial operations by early 2028. But key\nplayers have indicated there has been no significant construction\nprogress so far, and Indonesian officials have recently sent mixed\nsignals, with one senior power official saying there is still no final\ndeal on what benefits Indonesia would receive from exporting electricity\nto Singapore.<\/p>\n
Political And Economic Stakes Are Rising<\/p>\n
The delay matters beyond a single energy deal. Analysts say exporting\nclean power to Singapore could help Indonesia scale its still-developing\nsolar industry and generate major foreign exchange earnings, while a\nprolonged stall could hurt Indonesia\u2019s investment reputation if\ncommitments backed by senior leaders do not translate into execution\nafter a change in administration. At the same time, Singapore is\ncounting on imported low-carbon electricity as part of its broader\ndecarbonization strategy.<\/p>\n
The Batam-to-Singapore solar export plan still has strategic logic\nfor both countries, but the financing gap has become a real bottleneck.\nUnless Indonesia resolves the five-year permit issue or provides clearer\nlong-term certainty, the 2028 timeline looks increasingly difficult to\nmeet. For Indonesians, the project could strengthen solar manufacturing,\ninvestment, and export revenues. For Singaporeans, delays would slow a\nkey source of future low-carbon electricity and complicate the country\u2019s\nenergy transition plans.<\/p>\n
Sources: Straits Times (2026)<\/p>\n
Keywords: Batam Solar Exports, Clause 37 Indonesia, Singapore EMA\nImports, Solar Farm Financing, Indonesia Singapore Energy Deal<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/batam-solar-export-delay-financing-rules-threaten-indonesia-singapore-green-power-plan-1773034626", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }