Electricity Export Negotiations to Singapore Still Stalled by Price

Minister of Energy and Mineral Resources Bahlil Lahadalia (Photo: VOI File)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) reported that Indonesia and Singapore have not completed an agreement to export electricity to the white lion country.

Minister of Energy and Mineral Resources, Bahlil Lahadalia, said that the agreement between the two countries was still hampered by the determination of the price of electricity which must provide a balanced profit for Indonesia and Singapore. For information, the issue of electricity exports is one of three agreements that have been signed since 2025.

"We discussed electricity. From a year ago we have signed a MoU. There are three MoUs. One is the export of electricity to Singapore, green electricity, the second is the green industrial area, and the third is for carbon capture storage or CCS. The three are a unity that we signed since last year," said Bahlil after the meeting.

Although the development of cooperation is considered positive, the negotiation process is not yet fully completed. One of the issues that are still being discussed is the determination of the price of electricity, given that the regulations in Indonesia place the authority to determine the price with the government. Indonesia wants an agreement that not only opens up export opportunities for energy, but also provides balanced economic benefits for both countries.

"Well, regarding the price of electricity to Singapore, the process of stages is underway, but we are still negotiating the price. Our regulations do place the price in the government. We want there to be a win-win, mutually beneficial. Cooperation must be mutually beneficial for both parties. It's just at that point and I think there will be a meeting point soon," he said.

Apart from the energy sector, the Indonesia-Singapore meeting also discussed various bilateral cooperation agendas, ranging from trade, investment, connectivity, digital economy, cyber security, to defense. Of the 26 agreements signed, as many as 18 are intergovernmental cooperation, while the other eight are inter-business cooperation.

The plan for cross-border electricity trading is part of strengthening economic relations between the two countries, especially in the development of green energy and energy transition. However, the completion of the price negotiation remains a determinant so that the cooperation can be immediately implemented.

A balanced price agreement is considered important so that electricity exports are not only commercial transactions, but also provide real economic benefits for Indonesia and support the sustainability of energy cooperation with Singapore.