Indonesia unlikely to export electricity in the near future, citing domestic demand: Minister
Indonesia’s Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia did not name any country specifically, but Singapore had previously granted conditional approvals for firms to import low-carbon electricity from Indonesia.
Gas plant operations with engineers in Lampung, Indonesia. (Photo: Pexels/Dimas Rachmadan)
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JAKARTA: Indonesia is unlikely to export electricity in the near future, with domestic demand remaining high, said the country’s Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia.
Speaking at the Presidential Palace in Jakarta on Monday (Nov 2), Bahlil said exports could still proceed as long as prospective buyer countries agree to the prices set by the Indonesian government, state news agency Antara reported.
“As long as the price is right and they agree to our price, then of course it’s possible. But if the price is not right, we will prioritise domestic needs,” said Bahlil, who is also Indonesia’s energy and mineral resources minister.
He was reiterating earlier comments he had made at the 2026 Mineral and Coal Convention and Exhibition in Jakarta the same day, when he announced that Indonesia would not be able to export electricity in the near future.
“Indonesia will not be able to export electricity in the near future. We still need electricity,” he said.
Bahlil added that the government had calculated electricity export prices and urged the country’s sovereign wealth fund Danantara to not be swayed by foreign lobbying efforts seeking to lower the prices.
The minister did not name any country specifically in comments carried by Indonesian media, but Singapore had previously granted conditional approvals for firms to import low-carbon electricity from Indonesia.
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“I have reminded Danantara, do not let them lobby you,” said Bahlil, adding that the permit rests with the ministry and not the sovereign wealth fund.
“National sovereignty and the authority of the state must come first.”
Last month, Indonesia began reducing natural gas exports to Singapore in order to divert more supplies to domestic electricity needs. The country’s upstream oil and gas regulator SKK Migas previously told CNA that the move was intended to “safeguard the reliability of domestic gas supplies for electricity generation”.
AGREEMENTS MUST BE MUTUALLY BENEFICIAL
Electricity export agreements must be mutually beneficial to both parties, Antara reported. If the prices are not agreed upon, Bahlil said the Indonesian government will not push ahead with exports but instead prioritise meeting domestic demand.
“Regarding our electricity exports, I have said that the first consideration is that they must be mutually beneficial. If we cannot agree on the price, we cannot proceed,” Bahlil said.
He reiterated that meeting domestic demand remained the government’s priority before considering electricity sales to other countries.
“We must first meet our own domestic needs.”.
05:31 Min ASEAN Secretary-General Kao Kim Hourn tells CNA’s Roland Lim at Singapore International Energy Week that prolonged tensions over Indonesia’s reduced gas exports to Singapore could have wider implications for regional energy cooperation. He expresses confidence that both countries can resolve the issue swiftly, emphasising that strong bilateral ties are crucial to ASEAN’s collective energy security.
Indonesia last month began diverting 31 million standard cubic feet of gas a day, comprising 15 million from Natuna and 16 million from Sumatra.
Gas from Natuna was diverted to PLN Batam through the WNTS–Pulau Pemping–Batam pipeline. Meanwhile, supplies from Sumatra were being redirected through the TGI pipeline to meet electricity needs in Batam, Bintan and Sumatra.
Natural gas is used to generate about 95 per cent of Singapore’s electricity.
Bahlil has said that the gas export cuts to Singapore fall within the minimum contractual limits of around 91 to 92 per cent of exports.
“We have only reduced it by about 8 per cent. We would only be in breach of contract if we were to cut by 10 per cent,” said Bahlil.
“This situation arose partly due to maintenance requirements, but also because of domestic demand. And that is just for the gas – not even accounting for the LNG (liquefied natural gas) we supply,” he added.
In response to queries from CNA, a spokesperson for Singapore’s Ministry of Energy, Trade and Industry (METI) reiterated minister Tan See Leng’s comments on Oct 25 that Gas Supply Private Limited (GSPL) would engage its suppliers to determine whether the reduction would amount to a breach of contract.
GSPL is a wholly-owned subsidiary of Temasek and Singapore’s gas importer.
“We welcome the clarification that Indonesian suppliers will honour their contracts,” said the ministry spokesperson.
Bahlil had previously also suggested that LNG shipped from Indonesia to Singapore had subsequently been resold to other countries rather than used for domestic consumption.
The Jakarta Globe had reported that Bahlil did not provide evidence identifying specific shipments that had been re-exported.
Singapore’s METI later clarified that LNG traded by Singapore-based companies is usually shipped directly from its source country to its destination without physically passing through Singapore.
Source: Agencies/lk(as)
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