Electricity Export to Singapore Stalled Over Price, Bahlil Insists on Win-Win Deal

Indonesia’s plan to export electricity to Singapore remains stalled as negotiations over a crucial pricing agreement continue. Minister of Energy and Mineral Resources Bahlil Lahadalia stated that the government is pushing for a balanced deal that provides real economic benefits for Indonesia.

“The process is ongoing, but we are still negotiating the price. It must be a win-win, mutually beneficial arrangement,” Bahlil said in Jakarta on Tuesday.

He explained that the electricity export plan is a continuation of an energy cooperation agreement signed by both countries last year. The scope of the cooperation includes the export of electricity, the development of green industrial estates, and Carbon Capture and Storage (CCS).

“We signed three Memoranda of Understanding a year ago. The first is electricity exports to Singapore, the second is green industrial estates, and the third is carbon capture storage or CCS,” Bahlil noted. “These three are a single unified package that we signed last year.”

Bahlil emphasised that the cross-border electricity trade plan is part of strengthening economic relations between the two countries, particularly in green energy development and the energy transition. However, he maintained that the completion of price negotiations remains the decisive factor before the cooperation can be implemented.

He stressed that a balanced pricing agreement is crucial to ensure the electricity export is not just a commercial transaction, but also delivers tangible economic benefits to Indonesia and supports the sustainability of energy cooperation with Singapore. “Cooperation must benefit both parties. We are just at that point, and I think we will find common ground soon,” he concluded.