Jakarta—The Indonesian government has begun to open the option of exporting electricity to Singapore, especially from renewable energy sources such as solar power plants (PLTS). Although there has been a Memorandum of Understanding (MoU) between the two countries, the Indonesian government emphasised that the agreement is not yet binding and that there is no direct obligation to immediately export electricity.
Minister of Energy and Mineral Resources (MEMR) Bahlil Lahadalia, at the Kumparan Green Conference on Wednesday, September 25, stated that the government will carefully decide on electricity exports. He explained that the government is still carefully studying domestic electricity needs before exporting electricity abroad.
“We have no problem with exports, but we must be careful. We must ensure that domestic needs are met, see the economic value for the country, and then formulate the final decision,” Bahlil said.
So far, the agreement between Indonesia and Singapore has been limited to an MoU, which, according to Bahlil, is not binding. This allows Indonesia to consider various factors before exporting electricity to neighbouring countries.
“There is no binding agreement. There is only an MoU, and the MoU is not binding. It’s more of an understanding,” Bahlil explained.
This statement also responds to an earlier statement from the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, who was optimistic that Indonesia could export up to 2-3 Gigawatts (GW) of electricity to Singapore.
“We may be able to export up to 3 gigawatts because the energy potential is large,” Luhut said at the Indonesia Sustainability Forum 2024 in Jakarta some time ago.
Balance of domestic supply and export
Although exporting electricity to Singapore is an option being considered, Bahlil emphasized that the government’s top priority is to ensure that the domestic electricity supply remains stable and sufficient.
“We must pay attention to national energy needs first. If we see a surplus and the economic value is good for the country, then we can talk about exports,” Bahlil said.
The government also emphasised that the decision-making process regarding electricity exports will involve in-depth studies, including its economic impact on the country. The final decision will be made based on discussions between the governments of Indonesia and Singapore while prioritising national interests. (Hartatik)
