Indonesian Political, Business & Finance News

Indonesia to Export Clean Electricity to Singapore, Riau Islands to Become Industrial Hub

| Source: CNBC Translated from Indonesian | Energy
Indonesia to Export Clean Electricity to Singapore, Riau Islands to Become Industrial Hub
Image: CNBC

Indonesia and Singapore continue to develop plans for clean electricity exports from Indonesia to Singapore. The policy will be preceded by the development of high-technology industries in Indonesia.

Energy and Mineral Resources Minister Bahlil Lahadalia stated that the government intends to leverage the availability of green energy to attract global companies to build production facilities and technology centres in the Batam, Bintan, and Karimun (BBK) region, enabling the Riau Islands to develop as a new green industrial hub in Indonesia.

“I have received reports that the industrial zone is almost finalised. We will build in the Riau Islands region. I am currently clarifying this. Once that is completed, I believe this represents progress in preparation,” Bahlil said during a meeting with Singapore’s Minister for Manpower and energy official Tan See Leng in Tokyo, Japan on Sunday (15 March 2026).

Similarly, Minister Tan See Leng welcomed the technical progress regarding this cooperation. “I believe most technical discussions have made good progress,” Tan See Leng stated.

During the meeting, both countries also discussed the development of a sustainable industrial zone in Batam, Bintan, and Karimun. The government is preparing a scheme to ensure domestic electricity needs remain prioritised before exports, whilst also opening opportunities for low-carbon technology cooperation such as carbon capture and storage (CCS).

“Regarding CCS, I have prepared the regulations. We can then conduct collaboration,” Bahlil said.

Another focus of the meeting involved electricity exports. Bahlil offered electricity exports from solar power plants (PLTS), in line with the 100-gigawatt (GW) electrification programme built to meet domestic needs and that can also be exported to neighbouring countries. However, there is a challenge regarding pricing, where green energy costs are higher than fossil fuel energy.

Concluding the meeting, both ministers agreed this synergy demonstrates energy leadership in ASEAN. With technical support and investment from Singapore combined with abundant resources from Indonesia, the vision of becoming a key player in the green energy supply chain is now on the right track. Real implementation through pilot projects in the BBK region is expected to begin soon as concrete evidence of the three memoranda of understanding previously signed.

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