Jakarta. Indonesia and Singapore on Monday announced new deals on cross-border electricity trade as talks on the price arrangements remain underway, as President Prabowo Subianto hosted Singaporean Prime Minister Lawrence for their annual leaders’ retreat in Jakarta.

The two leaders unveiled fresh memoranda of understanding (MoUs) on advancing the power exports. 

Sovereign wealth fund Danantara inked MoUs with electricity retailer Keppel Electric, state-run energy company Sembcorp Industries, and Singapore Energy Interconnections, the last being the government-appointed firm in charge of handling the cross-border linkages. Danantara sealed a roadmap with the Singaporean government “to catalyze” the electricity trade.

"[The MoUs] will provide a clear roadmap for negotiations and discussions between the parties, paving the way for our cross-border electricity project. We believe such a project is a win-win for both countries,” Wong told a news conference after the closed-door talks with Prabowo.

Wong framed the project as an “important building block” to the ASEAN Power Grid. This is the bloc’s initiative of connecting the member states’ electricity networks.

Sembcorp has joined forces with local renewable energy player SESNA and sovereign fund INA to develop a major solar project in Central Sulawesi’s Morowali industrial park, a key nickel processing hub. The investments are worth approximately $210 million. It will generate 200 megawatts of solar photovoltaic capacity integrated with an 80 megawatt-hour battery energy storage system.

Commenting on this Morowali project, Wong mentioned Indonesia’s “tremendous potential in renewable energy,” which Singapore can help unlock.

Prabowo did not talk much about the electricity exports during his turn to address the media. He only said that “Indonesia has appointed Danantara to take care of the cross-border electricity trade”.

The Jakarta Globe has reached out to Danantara to shed light on the new MoUs.

Danantara oversees all state firms, including PLN, which holds a monopoly on the country’s electricity market.

Singapore aims to import 6 gigawatts of low-carbon electricity by 2035, and some 3.4 gigawatts will come from Indonesia.

Later that day, Energy Minister Bahlil Lahadalia told the press that they were still negotiating the pricing. Indonesia is seeking a win-win price before it can export the first electrons of green electricity. Last year, both countries signed a ministry-level MoU to facilitate the regulatory framework.

Vietnam and Malaysia are also in the process of becoming Singapore’s electricity suppliers.