Indonesia Agrees to Export Green Electricity to Singaporean State-Owned Firms

The Indonesian government has agreed to a memorandum of understanding (MoU) to export green electricity to Singaporean state-owned enterprises, Keppel Electric and Sembcorp Industries. The agreement was part of 26 MoUs signed during a meeting between President Prabowo Subianto and Singaporean Prime Minister Lawrence Wong in Jakarta. The deal involves Indonesia’s Danantara Investment Management Agency and sets a roadmap for further negotiations on a cross-border electricity interconnection project. This initiative is also seen as a foundational step towards developing the ASEAN Power Grid. Minister of Investment and Downstreaming, who also serves as Danantara’s CEO, Rosan Roeslani, stated that the project is a long-term plan, initially discussed four years ago, and is designed to deliver a win-win outcome for both countries. The green power plants will be developed in stages across Batam, Bintan, and Karimun, with a total capacity of 3.4 gigawatts. The initial phase will have a capacity of between 600 megawatts and 1.2 GW. Danantara will act as the Indonesian partner, while Keppel and Sembcorp will be the off-takers. Meanwhile, Minister of Energy and Mineral Resources Bahlil Lahadalia explained that the cooperation follows up on a previous MoU and that discussions are now focused on pricing. He acknowledged that a price has not yet been set as the current proposals are not considered sufficiently beneficial, but he expressed confidence that a mutually agreeable price point would be reached soon.