Private sector urges inclusion in Indonesia’s electricity export plans

The Indonesian Private Power Producers Association (APLSI) has called on the government to ensure that private companies are included in future electricity export initiatives, particularly in light of proposals to assign state-owned utility PT PLN (Persero) as the sole export aggregator.

This response follows PLN’s recent proposal to consolidate cross-border electricity sales under a single state-owned enterprise (SOE) through revisions to Law No. 30/2009 on Electricity. The proposal was presented during a hearing with Commission XII of the House of Representatives on August 26, 2025.

APLSI Chairman Eka Satria emphasized that electricity exports—especially those involving renewable energy—should be developed through collaboration between the government, SOEs, and the private sector.

“We hope for close cooperation between the government, SOEs, and private entities so that the utilization of clean energy, particularly for exports, can be optimized and provide maximum benefits for the national economy,” Eka told Bisnis on Monday, September 1.

Eka, who also serves as CEO of PT Medco Power Indonesia, stressed that the private sector is a strategic partner in accelerating clean energy development. He argued that involving private players will not only enhance Indonesia’s position as a potential clean energy hub in ASEAN but also bring wider economic benefits.

“This will increase foreign exchange, attract foreign investment, create jobs, and support industrial downstreaming,” he added.

Read also : Eka Satria appointed as new chairman of APLSI

PLN’s proposal to become the sole aggregator draws from the current model used in natural gas exports to Singapore, where PT Pertamina (Persero) consolidates output from multiple producers and negotiates directly with buyers. PLN Director of Legal and Human Capital Management, Yusuf Didi Setiarto, argued that a similar approach for electricity would protect national interests and strengthen Indonesia’s bargaining position.

“If we approach the Singapore market individually, block by block, we will be dictated by their market. But if we consolidate through a single SOE under a government-to-government scheme, we dictate the terms,” Didi told lawmakers.

He added that such an arrangement is crucial for maintaining sovereignty over strategic resources like electricity, especially within the framework of the ASEAN Power Grid (APG).

However, the government has signaled a different direction. Minister of Energy and Mineral Resources Bahlil Lahadalia previously stated that the government will prioritize private sector participation in electricity exports, with PLN’s role still under consideration.

“The companies involved in electricity exports will be private. PLN may participate, or may not. We will see,” Bahlil said last month.

The government’s plan to export up to 3.4 gigawatts (GW) of renewable electricity to Singapore, under a memorandum of understanding (MoU) signed with Singapore’s Minister for Energy on June 13, underscores the importance of broad stakeholder involvement. The Ministry of Energy estimates this would require 18.7 GW of solar panel capacity and 35.7 GWh of battery storage.

At the same time, PLN remains heavily committed to domestic infrastructure development under its Electricity Supply Business Plan (RUPTL), including 69.5 GW of new power generation capacity and 8,000 kilometers of transmission lines by 2034.

Editing by Reiner Simanjuntak

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