Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that the realization of electricity exports from Indonesia to Singapore is currently still hindered by the determination of a price agreement. Although the Memorandum of Understanding (MoU) was signed a year ago, an in-depth negotiation process is still being pursued to create a fair economic value for both countries.
Bahlil emphasized that the government's role in this project is as a facilitator providing the regulatory umbrella, policy framework, and necessary permits. Meanwhile, the technical execution of the project will be fully handed over through a business-to-business (B2B) mechanism.
Furthermore, Bahlil explained that the cooperation is flexible and open to various business entities. The project can be run through collaboration between state-owned enterprises (SOEs), including the involvement of BPI Danantara with its partners in Singapore, or through private sector partnerships, as long as they comply with applicable regulations and bring a positive impact to national interests.
Regarding the technical regulations for cross-border electricity trade, the government chose to wait until a price consensus is reached. According to Bahlil, the government does not want to rush into issuing technical rules before the buying and selling transaction mechanism is declared win-win or beneficial for both parties. Once the price agreement is finalized, only then will the government draft detailed regulations to cover its operational implementation.
