Minister of Energy and Mineral Resources, Bahlil Lahadalia, has called on Singapore to invest in Indonesia's downstream sector if it intends to purchase green electricity from the country.
“If Singapore wants to buy green electricity from us, they need to invest in our downstream sector,” Bahlil said in Jakarta on Friday, February 21, as reported by Antara
Bahlil emphasized that any green electricity exports should come with fair terms, ensuring that both Indonesia and Singapore benefit from the arrangement.
“This is an ASEAN initiative. We want to share with Singapore, but what will Singapore provide in return?” he said.
The Minister also reiterated President Prabowo Subianto's directive to prioritize national interests in every policy, including electricity exports.
Read also: Indonesia to review electricity export plan to Singapore
“President Prabowo has made it clear that our national interests must come first in all decisions, including those regarding electricity exports to Singapore,” he added.
Bahlil explained that both Indonesia and Singapore are still in negotiations to establish the best framework for their cooperation.
“Our teams are in talks, working together to find a mutually beneficial format,” Bahlil said.
As reported last year, the government planned to export electricity to Singapore. This plan was marked by the signing of a memorandum of understanding (MoU) between Indonesia and Singapore regarding electricity exports through the "Announcement on Cross-Border Electricity Interconnection" agenda.
The investment value from this agreement is expected to reach US$ 20 billion, equivalent to Rp 308.3 trillion (based on an exchange rate of Rp 15,418 per US$). The electricity export is planned to begin in 2028 for five companies involved in the agreement, with an additional two new consortiums expected to start electricity exports in 2030.
The energy source regions for exporting electricity to Singapore will primarily come from Sumatra.
Editing by Reiner Simanjuntak
