Bahlil: Electricity Export Rules to Be Drafted After Price Agreement

The acceleration of electricity export projects to Singapore is pending a mutually beneficial price agreement. Minister of Energy and Mineral Resources Bahlil Lahadalia explained on Tuesday (7/7/2026) that electricity exports to Singapore are still under negotiation, even though a memorandum of understanding (MoU) was signed in 2025. He stated that regulations, pricing, and various permits fall under the authority of the government, specifically the Ministry of Energy and Mineral Resources. The implementation, however, is carried out between business entities (B to B), which could involve BPI Danantara and a Singaporean state-owned enterprise or private companies. The most important aspect, according to Bahlil, is meeting the requirements and ensuring mutual benefit. The problem is that because the price has not been agreed upon, technical rules and export permits have not been issued. “There is no meeting point on the price yet, so there is no agreement on the price. Once there is a price, then I will make the rules,” he told reporters at the Presidential Palace complex in Jakarta. Bahlil and Singapore’s Minister for Energy, Science and Technology, Tan See Leng, signed an MoU in Jakarta on 13 June 2025. The MoU covers electricity export cooperation until 2035, including the development of a solar panel industry, carbon capture and storage (CCS), and industrial estates, with a total investment value reaching 10 billion US dollars. A similar MoU was previously signed by former Minister Arifin Tasrif and Tan See Leng on 8 September 2023, covering low-carbon electricity cooperation and cross-border electricity interconnection. This was a follow-up to MoUs between the two countries in 2022 and early 2023, where PT PLN was appointed as the coordinator for the Indonesian side. During a Leaders’ Retreat between President Prabowo Subianto and Singapore Prime Minister Lawrence Wong at Merdeka Palace, Jakarta, on 6 July 2026, Danantara Investment Management Agency Head Rosan P. Roeslani signed an MoU with several Singaporean energy companies to accelerate the cross-border electricity trade project. To date, there are no specific regulations regarding electricity exports, although Government Regulation Number 40 of 2025 on the National Energy Policy opens this option. Article 26, Paragraph 1 states that cross-border export of energy resources in the form of electricity can be carried out to improve efficiency, reliability, and security of energy supply, while prioritising the fulfilment of local electricity needs. Paragraph 3 of the same article regulates that cross-border export and import of electricity is conducted by the exporting or importing state electricity company or a business entity appointed to represent the exporting or importing state. PT Vanda Energy Indonesia, one of the companies participating in this electricity export, is still waiting and welcomes the commitment of both countries reaffirmed by President Prabowo and PM Wong to strengthen and accelerate cooperation in cross-border electricity trade (CBET). “We view this development as a very positive step,” said Enda Ginting, Country Manager Indonesia of Gurīn Energy and Director of PT Vanda Energy Indonesia, in a written statement. The Vanda Solar & Battery project has now reached the ready-to-build stage, with significant progress achieved in commercial, technical, permitting, and environmental aspects. However, physical construction is still waiting for the issuance of an export permit from the Indonesian Government. Enda noted that while renewable energy generation, transmission, and sales are well-established sectors, cross-border renewable energy cooperation is still relatively new in Southeast Asia. “Therefore, regulations continue to evolve as the government refines its policies and permitting processes, and we understand that this is an ongoing process,” he said. Researcher at the National Research and Innovation Agency (BRIN), Muhammad Indra Al Irsyad, assessed that electricity exports are attractive in terms of increasing foreign exchange and boosting the new and renewable energy (EBT) industry. However, he stressed the importance of ensuring that the technology for these ‘clean’ power plants is no longer imported. “Ensuring environmentally friendly products will facilitate entry into developed country markets,” he said.