Indonesia and Singapore Forge New Energy Ties with Electricity Export Agreement

In a significant move to strengthen bilateral relations, Indonesian President Prabowo Subianto and Singaporean Prime Minister Lawrence Wong convened for the annual Leaders Retreat on July 6, 2026, at the Merdeka Palace in Jakarta. The meeting resulted in 26 memoranda of understanding (MoUs) covering various sectors, including energy, trade, and defense.

Among the key agreements is the acceleration of cross-border electricity trade. Indonesia has appointed the Investment Management Agency, Danantara, to oversee this initiative, collaborating with Singaporean companies such as Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections. The project aims to export electricity generated from renewable sources, with a target capacity of up to 3.4 gigawatts (GW) over several years, starting with an initial capacity of between 600 megawatts (MW) and 1.2 GW.

“This project is not only about building power plants but also about developing the necessary transmission infrastructure to support cross-border electricity trade.”Rosan Roeslani, CEO of Danantara

Rosan Roeslani, CEO of Danantara, highlighted that the electricity will be sourced from new power plants to be developed in the Batam, Bintan, and Karimun regions. He stated, “This project is not only about building power plants but also about developing the necessary transmission infrastructure to support cross-border electricity trade.”

However, the exact pricing for the electricity remains under negotiation, as Minister of Energy and Mineral Resources Bahlil Lahadalia emphasized the need for a mutually beneficial agreement. “We are still negotiating the price to ensure that both parties find it advantageous,” he noted.

“We are still negotiating the price to ensure that both parties find it advantageous.”Bahlil Lahadalia, Minister of Energy and Mineral Resources

In addition to energy agreements, the two leaders discussed expanding the Kendal Industrial Park, which will grow by 1,000 hectares to accommodate new investments. Wong stated that this expansion is crucial for enhancing industrial activities and creating job opportunities in Indonesia.

Furthermore, the meeting addressed defense cooperation, with plans for joint military training facilities in Baturaja and Siabu, Riau. Wong expressed that such initiatives would deepen the longstanding defense relationship between the two nations.

“This expansion is crucial for enhancing industrial activities and creating job opportunities in Indonesia.”Lawrence Wong, Prime Minister of Singapore

Both leaders also reaffirmed their commitment to maintaining the security and accessibility of the Malacca Strait, a vital shipping route. They agreed on the importance of ensuring freedom of navigation and addressing security threats such as piracy and environmental hazards.

Overall, the agreements reached during the Leaders Retreat signify a robust commitment to enhancing economic ties and mutual security between Indonesia and Singapore, with a focus on sustainable development and regional stability.