Indonesia-Singapore power export plans face regulatory hurdles

Plans to boost cross-border electricity trade (CBET) between Indonesia and Singapore have secured backing from Indonesia’s National Energy Council (DEN), but regulatory constraints continue to hamper progress, Kontan reported.

Council member Saleh Abdurrahman said the initiative aligns with Southeast Asia’s broader push for regional power interconnection under the ASEAN Power Grid, aimed at strengthening investment and energy security.

 “ASEAN has an electricity interconnection program through the ASEAN Power Grid, both in terms of investment and improving regional energy security,” he told Kontan on Wednesday.

Saleh added that renewable-based electricity exports, particularly from solar power, offer strong business prospects. However, he stressed the need to maximize domestic value creation by developing a full supply chain, rather than positioning Indonesia solely as an electricity supplier.

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Indonesia’s Investment Minister Rosan Roeslani discussed CBET cooperation with Singapore Prime Minister Lawrence Wong during a recent visit, highlighting opportunities in green growth and future industries.

Singapore has granted conditional approval for several Indonesian firms to export up to around 3 gigawatts (GW) of electricity, according to Fabby Tumiwa, executive director of the Institute for Essential Services Reform (IESR). A consortium involving PT Medco Energi Internasional is among those preparing projects.

Despite progress on infrastructure and partnerships, regulatory misalignment remains a key obstacle. Fabby pointed to Minister of Energy and Mineral Resources Regulation No. 5/2025, which limits electricity export permits to five years, compared with 20-year contract terms typically required by Singapore.

This mismatch creates uncertainty for investors and could delay project implementation.

Editing by Reiner Simanjuntak