Indonesia has made it clear that it will not export electricity to Singapore unless both countries agree on a suitable price, casting uncertainty over plans to supply up to 3.4 gigawatts (GW) of low-carbon electricity. Energy and Mineral Resources Minister Bahlil Lahadalia emphasized that while Indonesia remains open to exporting electricity, domestic needs will take priority if pricing terms are not met. Speaking to reporters on Nov 2, Bahlil stated, "As long as the price is right, follow our prices, that is possible. But if the price is not right, we will prioritise domestic needs."
The comments come amid ongoing tensions between the two countries over transboundary haze and natural gas supplies. Bahlil also warned sovereign investment agency Danantara against yielding to lobbying over electricity export decisions, stressing that his ministry holds the authority to issue permits. His remarks follow a major bilateral energy initiative announced in June 2025, which included agreements on cross-border electricity trade, carbon capture and storage, and the development of a sustainable industrial zone in Indonesia’s Riau Islands.
Singapore’s Energy Market Authority had earlier granted conditional licences for 2GW of electricity imports from Indonesia and conditional approvals for another 1.4GW, bringing the total planned capacity to 3.4GW. The proposed electricity trade aims to help Singapore reduce its reliance on fossil fuels while attracting investment in renewable energy generation and supporting infrastructure in Indonesia. However, Bahlil has consistently stressed that the terms must be mutually beneficial, stating in May 2026, "We will also export to Singapore, but the price must be fair."
Separately, Bahlil called for Indonesian natural resources, including minerals and liquefied natural gas (LNG), to be exported directly to destination countries rather than passing through intermediary nations. He argued that Indonesia should not allow others to benefit from trade involving its natural resources, following accusations that Singapore was reselling some of the LNG it purchased from Indonesia to other countries. Singapore’s Ministry of Energy, Trade and Industry clarified that LNG traded by Singapore-based companies usually moves directly from its source to the destination country without physically passing through Singapore.