Indonesia, Singapore Sign MOUs for Electricity Export Potential

PT Danantara Investment Management has signed two Memorandums of Understanding (MOUs) with Singaporean companies Keppel Electric and Sembcorp Utilities, signaling a potential collaboration for electricity exports from Indonesia to Singapore. The agreements were finalized on Monday, July 6, 2026.

Rosan Perkasa Roeslani, CEO of the Indonesia Investment Authority (INA), stated that Indonesia is fully committed to developing the necessary regulations and infrastructure for the project to be operational before the end of this decade. He described the interconnection with Singapore as a catalyst for domestic green industrialization and a key part of a larger strategic transformation.

Danantara also entered into an MOU with Singapore Energy Interconnections to facilitate information exchange and explore cooperation on commercial and technical aspects of cross-border interconnection. The project, with a projected capacity of 3.4 GW or more, is anticipated to be realized by 2035. It is expected to enhance energy connectivity and promote decarbonization in the clean energy sector for both countries.

Furthermore, Indonesia and Singapore will develop and adopt a Cross-Border Renewable Energy Certificate (REC) Framework, aligned with international standards, to support the tracking and accounting of cross-border RECs. Roeslani believes Indonesia will pioneer an ASEAN power grid with Singapore, demonstrating that regional decarbonization and high-value economic growth can occur simultaneously.

Singapore's Minister for Energy and Science and Technology, Tan See Leng, viewed the potential electricity export project positively, expressing confidence that political will from both governments will overcome remaining hurdles. Operations are targeted to commence within this decade, promising greater energy security and sustainability for both nations, along with economic benefits.