Indonesia Still Negotiating Electricity Prices for ASEAN Power Grid, says BCA Securities
The Minister of Energy and Mineral Resources, Bahlil Lahadalia, has announced that Indonesia has not yet signed the ASEAN Power Grid (APG) agreement—an integrated network system among ASEAN member states—as negotiations regarding electricity pricing are still ongoing.
“The price is not yet win-win,” Bahlil stated when met during the Electricity Connect 2026 event held in Tangerang, Banten, on Tuesday.
Bahlil revealed that communications have been held with Malaysia regarding the commitment to the ASEAN Power Grid, which was a result of the 48th ASEAN Summit in Cebu, Philippines. He admitted that the commitment has not been signed because, according to his calculations, Indonesia has not yet secured an equitable profit.
“A win-win situation means profit for you and profit for us. The profit must be fair; it cannot be that you gain 70% and we gain 30%. That is not win-win, that is one-sided,” Bahlil remarked. He added that he will sign the agreement once a fair deal is reached.
Nevertheless, Bahlil emphasised that no nation can thrive without collaboration, particularly through regional cooperation such as within ASEAN. “No country is great as a single fighter; those days are over. Collaboration involves mutual need, mutual acceptance, and mutual giving,” he said. Consequently, he remains committed to collaboration, provided it is based on terms that are mutually beneficial and fair.
It was previously reported that President Prabowo Subianto has urged ASEAN nations to accelerate the creation of an energy grid, noting that energy security is an urgent challenge to be faced collectively amidst global pressures and geopolitical instability in the Middle East. The Head of State noted that the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) possesses significant potential for the development of new and renewable energy, ranging from hydropower, solar, and wind power to underutilised fertile lands.