Bahlil Reveals Electricity Export to Singapore Still Under Negotiation

Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has revealed that the plan to export electricity from Indonesia to Singapore is still under negotiation. Although a memorandum of understanding (MoU) was signed a year ago, the government is still aligning various technical and commercial aspects before the project can proceed. Bahlil explained that from a regulatory standpoint, pricing, and various permits are fully being synchronised within the Ministry of ESDM. He stressed that the implementation of the energy cooperation will later be carried out through a business-to-business (B2B) scheme, either between state-owned enterprises or private sector entities. “The MoU for electricity export was signed a year ago. However, the process is still ongoing, negotiations are still underway. Regulations, pricing, and various permits are the government’s domain. That is the business of the Ministry of ESDM,” he stated at the Presidential Palace in Jakarta on Tuesday (7/7/2026). The government is open to the possibility of the Danantara Investment Management Agency or private businesses executing the cross-border energy transmission project. Bahlil emphasised that a key condition of the cooperation is compliance with applicable rules and ensuring fair benefits for both parties. “In its implementation, it is B2B. It could be the SOE Danantara with a Singaporean SOE, or another option, private with private. The important thing is that it meets the regulatory requirements and is mutually beneficial. That is the most important thing,” he asserted. To date, one of the critical points still under discussion is the agreement on the electricity sale and purchase price. He noted that technical regulations regarding the trading mechanism will only be finalised once a price point deemed profitable for Indonesia is reached. “The price has not been agreed yet. It is not yet win-win. As I said, there is no meeting point on the price yet, which is why there is no agreement on the price. Once there is a price, then I will make the regulation,” he concluded. Previously, President Prabowo Subianto stated that he had appointed BPI Danantara to implement cross-border trade, specifically for electricity exports to Singapore. “Indonesia has appointed BPI Danantara to implement cross-border electricity trade cooperation, also in the field of trade,” President Prabowo explained during a joint press conference with Singaporean Prime Minister Lawrence Wong at the State Palace on Monday (6/7/2026). Prabowo also said Danantara is tasked with activities in the energy, digital economy, and digital ecosystem sectors, adding, “We have conducted discussions and achieved concrete results.”