Bahlil Reveals Electricity Export to Singapore Still Under Negotiation
The Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has revealed that the plan to export electricity from Indonesia to Singapore is currently still in the negotiation stage. Although a Memorandum of Understanding (MoU) was signed one year ago, the government is still aligning various technical and commercial aspects before the project can proceed.
Bahlil explained that from the perspective of regulation, pricing, and various permits, everything is still being synchronised within the Ministry of Energy and Mineral Resources. He emphasised that the implementation of this energy cooperation will be conducted through a business-to-business (B2B) scheme, involving either state-owned enterprises or the private sector.
“The thing is, the MoU for electricity exports was signed one year ago. However, the process is still ongoing, and negotiations are still underway. Regarding regulations, pricing, and various permits, that is the domain of the government, and it is the responsibility of the Ministry of ESDM,” he explained at the Presidential Palace, Jakarta, on Tuesday (7/7/2026).
The government is opening opportunities for the Danantara Investment Management Agency as well as private business actors to execute this cross-border energy transmission project.
Bahlil emphasised that one of the requirements for this cooperation is compliance with applicable regulations and ensuring fair benefits for both parties.
“However, in its implementation, it will be B2B. It could be Danantara SOEs with Singaporean SOEs, or other options such as private sector with private sector. The important thing is that it meets the regulatory requirements and is mutually beneficial. That is the most important part,” he asserted.
At this stage, one of the critical points still under discussion is the agreement on the electricity sale and purchase price. He noted that the technical rules regarding the electricity trading mechanism will only be finalised once a consensus is reached on a price deemed advantageous to Indonesia’s position.
“The price is not yet settled; it is not yet a deal. It is not yet win-win. As I said, there is no consensus on the price yet, which is why there is no agreement on the price. Once the price is established, I will create the regulations,” he concluded.
Previously, President Prabowo Subianto stated that the BPI Danantara has been appointed to implement cross-border trade, specifically regarding electricity exports to Singapore.
“Indonesia has appointed BPI Danantara to implement cross-border electricity trade cooperation, as well as in the field of trade,” President Prabowo explained during his press conference with Singaporean Prime Minister Lawrence Wong at the State Palace on Monday (6/7/202<0xA0>26).
Prabowo also mentioned that Danantara has been tasked with activities in the fields of energy, the digital economy, the digital ecosystem, and cybersecurity. “We have conducted discussions and achieved concrete results,” Prabowo stated.