Indonesia has indicated that it may continue exporting electricity to Singapore, but only if the price offered meets its expectations.
Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia said the country would prioritise its own electricity requirements if Singapore was unwilling to pay the price set by the Indonesian government.
According to Indonesian media outlet Kompas, Bahlil made the remarks on November 2 at the Presidential Palace Complex in Jakarta.
He stressed that electricity exports must provide benefits to Indonesia and follow the country’s prescribed pricing arrangements.
“As long as the price is right. As long as the price is suitable and follows our rate, it is certainly possible. But if the price isn’t right, we will prioritise domestic needs,” Bahlil said.
He added that trade between the two neighbouring countries should be mutually beneficial rather than favouring one side.
Indonesia Warns Against Pressure To Lower Electricity Prices
Bahlil also warned Indonesia’s sovereign investment agency, Danantara, against allowing lobbying efforts to influence negotiations over electricity export prices.
He said the authority to issue electricity export permits rested with his ministry and cautioned the agency against agreeing to lower prices simply to secure a deal.
“If the price is still unsuitable, we can’t proceed. That’s why I ask Danantara not to be lobbied to follow suit so that prices can be lowered,” he said.
Bahlil revealed that his ministry had already calculated the proposed export tariff, although he did not disclose the actual figures.
The discussions follow agreements reached during the Singapore-Indonesia Leaders’ Retreat in July 2026.
During the meeting, Indonesian President Prabowo Subianto appointed Danantara to oversee the implementation of cross-border electricity trade with Singapore.
Prabowo and Singapore Prime Minister Lawrence Wong also exchanged agreements covering several areas of economic cooperation, including electricity trading.
Indonesia’s Energy Relations With Singapore Under Scrutiny
The latest comments come amid broader discussions over energy cooperation between the two countries, particularly following Indonesia’s decision to reduce natural gas exports to Singapore.
Indonesia had previously announced plans to cut its natural gas exports to Singapore by 31 billion British thermal units per day (BBTUD), starting October 24.
Bahlil’s latest remarks suggest that electricity exports could also become subject to tougher commercial conditions.
Minister Wants Indonesian Exports To Avoid Third Countries
Separately, Bahlil called for Indonesian natural resources to be exported directly to their final destinations instead of being routed through intermediary countries.
Speaking at the Minerba Convex 2026 forum on November 2, he criticised the practice of Indonesian commodities passing through other countries before being shipped to their intended markets.
He alleged that some intermediary countries were simply stamping the goods and subsequently claiming them as their own exports.
Although he did not specifically name Singapore, the comments came after Bahlil accused Singapore in late October of reselling some liquefied natural gas (LNG) imported from Indonesia to other countries instead of using it domestically.
Singapore’s Ministry of Energy and Trade and Industry (METI) subsequently clarified on October 30 that piped natural gas imported from Indonesia was intended for domestic consumption and not for re-export.
With electricity and natural gas both featuring in recent discussions, energy cooperation between Singapore and Indonesia remains an important issue for both countries.
For Singapore, which relies heavily on imported energy to meet its electricity needs, the pricing and reliability of regional energy supplies remain significant considerations.