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Indonesia to export clean electricity to SG by late 2026: Danantara
Danantara Indonesia sovereign fund said on May 11 that Indonesia plans to start exporting clean electricity to Singapore by the end of 2026.
Talks are under way after six to seven companies secured conditional licenses from Singapore.
The project could draw about US$30 billion in investment and add around 3 gigawatts of capacity, according to Danantara’s chief investment officer Pandu Patria Sjahrir.
Meanwhile, part of the output would be used at home as Indonesia works toward a 100 gigawatt power capacity target, Sjahrir added.
This comes as President Prabowo Subianto is due to meet Singapore’s Prime Minister Lawrence Wong in June to deepen the cooperation and move the project forward.
🔗 Source: Katadata
🧠 Food for thought
Implications, context, and why it matters.
Power exports will take longer than planned
- A start by the end of 2026 looks unlikely. In February 2026, Singapore said projects with Conditional Licences to import low-carbon electricity from Indonesia hoped to begin commercial operations by the end of the decade 1.
- A 1 gigawatt joint venture between Singapore-based RGE and TotalEnergies aims to start commercial operations in 2029. RGE is an industrial group. TotalEnergies is a French energy company 2.
- Conditional licenses are only a step toward approval. Companies still need to meet requirements such as financing before Singapore’s Energy Market Authority (EMA) can grant an electricity importer license. EMA is the country’s power regulator, and that license allows construction and commercial operations to begin 2.
- Singapore’s energy authority has said some projects with conditional approvals may never move ahead as developers revisit their plans 2.
Indonesia’s sovereign fund ties the deal to a wider energy push
- Danantara presents the export project as part of Indonesia’s wider energy transition and investment push 3.
- Through Danantara Investment Management (DIM), Danantara signed a Head of Agreement (HoA) with state utility PT Perusahaan Listrik Negara (Persero) (PLN) to explore investments in renewable power plants built by PLN subsidiaries. PLN puts the first phase at about 20 gigawatts with spending of roughly 600 trillion rupiah (US$36 billion) 4.
- The Singapore tie-up is meant to create more value in Indonesia, including support for a local solar panel manufacturing industry 3.
- The export plan also fits Danantara’s goal of drawing money into several renewable sectors. A Danantara executive put the opportunity at up to about US$200 billion across solar, hydro, waste-to-energy and other projects 5.
