Government prioritizes domestic power needs as investors seek clarity on cross-border projects.
Indonesia is reassessing plans to export electricity to Singapore as the government weighs regional energy cooperation against growing domestic power demand, particularly from data centers and industrial development.
Government Reassesses Electricity Exports
Energy and Mineral Resources Minister Bahlil Lahadalia said on October 26 that Indonesia is still reviewing the process for exporting electricity to other countries, including Singapore. He said the plan was unlikely to proceed in the near term because domestic electricity requirements would be prioritized. Bahlil emphasized that the government would recalculate and reconsider the proposal before determining its next steps.
Data Centers Could Require 20 GW
One of the government’s central considerations is rising demand from Indonesia’s data-center industry. Bahlil said planned data-center development could require around 20 gigawatts of electricity, strengthening the case for keeping more power available domestically before committing supply for export. He said exports could still be considered after domestic requirements are secured.
Batam Faces Its Own Power Requirements
Energy availability is particularly important for Batam and Bintan, where new data-center projects are increasing pressure on the local electricity system. The Batam-Bintan system has around 844 MW of installed capacity, while its reserve margin has been cited at approximately 13.9 percent. Planned electricity commitments for major data-center developments are approaching 1,000 MW, although that does not mean the full amount would be consumed simultaneously.
Investment Certainty Becomes Key Issue
The review could create uncertainty for companies planning renewable-energy generation, storage and transmission infrastructure for cross-border electricity trade. Developers may need greater clarity on long-term power purchase agreements, pricing, regulations and financing before committing further investment. Indonesia has previously pursued major electricity-export proposals involving renewable-energy projects, although their implementation remains subject to regulatory and commercial requirements.
Review Does Not Automatically Mean Cancellation
The government’s position so far represents a reassessment rather than a confirmed cancellation of electricity exports. Officials have continued to emphasize domestic supply as the priority while leaving open the possibility of future cross-border trade if national electricity needs, technical requirements, and commercial arrangements are adequately addressed. This creates a period of uncertainty for developers while Indonesia determines how domestic growth and regional energy cooperation can proceed together.
Indonesia’s review places Batam and the wider Riau Islands at the center of a difficult energy decision: supporting rapidly expanding domestic industries while preserving the economic potential of renewable electricity exports. For Indonesians, reliable power will be critical to attracting data centers and other major investments. For Singaporeans, the outcome will influence one potential source of imported low-carbon electricity as the city-state continues diversifying its future energy supply.
Sources: Batampos (2026) , Kontan (2026)
Keywords: Indonesia Singapore Electricity, Batam Power Supply, Electricity Export Review, Data Center Energy, Renewable Energy Investment, Singapore Energy
