Pricing dispute clouds planned 3.4GW low-carbon electricity trade as Indonesia prioritizes domestic demand.
Indonesia has put a clear condition on its planned electricity trade with Singapore: the deal must meet Jakarta’s price expectations. Until then, Energy Minister Bahlil Lahadalia says domestic power needs will take priority.
Indonesia Sets Price Condition
Energy and Mineral Resources Minister Bahlil Lahadalia said on November 2 that Indonesia remains open to exporting electricity to Singapore, but only if both sides agree on a price acceptable to Jakarta. He said the government has already calculated its proposed export price but did not disclose the figure, adding that Indonesia would prioritize domestic electricity needs if its terms were not met.
Near-Term Exports Remain Uncertain
Bahlil separately said Indonesia would not be in a position to export electricity in the near future because the country still requires additional power domestically. His remarks add uncertainty to plans for up to 3.4 gigawatts of low-carbon electricity to be supplied to Singapore, although both countries have been working toward bringing the projects into operation by 2035.
Singapore Has Approved 3.4GW in Planned Imports
Singapore’s Energy Market Authority has granted conditional licenses for 2GW of electricity imports from Indonesia and conditional approvals for another 1.4GW, bringing the planned capacity to 3.4GW. The proposed trade is intended to support Singapore’s transition away from fossil fuels while encouraging investment in renewable-energy generation and supporting infrastructure in Indonesia.
Bilateral Agreements Are Already in Place
Indonesia and Singapore signed agreements in June 2025 covering cross-border electricity trade, carbon capture and storage, and development of a sustainable industrial zone in the Riau Islands. At their July 2026 leaders’ retreat, President Prabowo Subianto and Singapore Prime Minister Lawrence Wong reaffirmed plans to accelerate electricity cooperation, with Indonesian sovereign investment agency Danantara appointed to help advance the initiative.
Singapore Says Domestic Needs and Cooperation Can Coexist
During an October 28 visit to Jakarta, Singapore Foreign Minister Vivian Balakrishnan said governments have a responsibility to secure essential supplies for their own populations but argued that domestic energy security and cross-border cooperation are not mutually exclusive. He said regional electricity agreements could encourage investment, expand infrastructure, and reduce costs through greater scale.
Indonesia’s latest position makes pricing and domestic energy security central to whether the planned electricity exports move forward. For Indonesians, especially in the Riau Islands where renewable-energy projects and infrastructure are expected to develop, the decision could influence future investment and power availability. For Singaporeans, the outcome will help determine whether Indonesia can become a major source of imported low-carbon electricity as Singapore diversifies its energy supply.
Sources: Straits Times (2026) , The Star (2026)
Keywords: Indonesia Singapore Electricity, Electricity Export Price, Bahlil Lahadalia, Singapore Power Imports, Low-Carbon Electricity, Cross-Border Energy
