Jakarta. Energy and Mineral Resources Minister Bahlil Lahadalia has warned Indonesia's sovereign wealth fund Danantara against foreign lobbying over planned electricity exports, saying the country will not supply power to overseas markets in the near future as domestic demand takes priority.

Bahlil said the government had yet to authorize electricity exports and cautioned the sovereign wealth fund (BPI Danantara) against being swayed by diplomatic pressure from countries seeking to buy Indonesian power.

“Indonesia will not be able to export electricity in the near future. We still need it ourselves,” Bahlil said at the opening of the Mineral and Coal Convention and Exhibition (Minerba Convex) 2026 in Jakarta on Monday.

“I have told Danantara not to let itself be lobbied. There will be no exports. The authority to issue permits rests with the Energy and Mineral Resources Ministry, not Danantara,” he said.

Bahlil, who also serves as coordinating minister for downstream industries and energy transition, said national sovereignty and the government's authority over energy resources must take precedence over the interests of foreign buyers.

“National sovereignty and the country's dignity must come first. These countries should not expect things to go their way all the time. Whenever something does not go as they want, they start making additional moves,” he said.

Singapore Power Deal Faces Setback

The announcement puts a major cross-border clean energy initiative with Singapore in doubt, dealing a setback to efforts to strengthen regional electricity connectivity under the ASEAN Power Grid plan.

Indonesia has planned to supply at least 3.4 gigawatts (GW) of low-carbon electricity to Singapore by 2035, with the two countries working on regulatory approvals, commercial arrangements, and technical frameworks to enable the first power deliveries.

Singapore, which has limited land and renewable energy resources, aims to import 6 GW of low-carbon electricity by 2035. Other potential suppliers include Malaysia, Vietnam, and Australia.

The planned Indonesian supply is expected to come primarily from renewable sources, including solar power projects. The initiative is intended to support Singapore's decarbonization goals while attracting investment in Indonesia's renewable energy sector.

Danantara, whose portfolio includes state-owned electricity utility PLN, was appointed by President Prabowo Subianto to oversee Indonesia's participation in the cross-border electricity trade initiative.

The sovereign wealth fund has signed several memoranda of understanding with prospective partners to advance the commercial and technical arrangements, including electricity offtake agreements.

Under the proposed arrangement, electricity generated in Indonesia would be transmitted to Singapore through subsea power cables. Parts of the planned supply are expected to originate in the Riau Islands, including the Batam-Bintan-Karimun region.

Singapore's Energy Market Authority said in September 2024 that five Indonesia-based projects had received conditional licenses to supply a combined 2 GW of low-carbon electricity, while two additional projects received conditional approvals for another 1.4 GW.

As of August 2026, six Indonesian projects had advanced to conditional licenses, according to Singapore's Ministry of Trade and Industry, although further approvals and agreements are required before commercial operations can begin.

Bahlil's latest announcement casts uncertainty over the timeline for those projects and the broader ambition to connect electricity networks across Southeast Asia.

Domestic Energy Needs Take Priority

The government has increasingly emphasized the need to secure sufficient electricity supplies for domestic industrial development, particularly as Indonesia accelerates its downstream processing and manufacturing programs.

Smelters, industrial estates, data centers, and other large-scale projects require substantial and reliable electricity supplies. The government has also been seeking to expand domestic manufacturing capacity and attract investment in energy-intensive industries.

Batam, one of Indonesia's emerging data center and industrial hubs, is among the areas expected to play a role in the proposed electricity trade with Singapore.

However, the planned exports have also raised questions about how Indonesia can balance its ambitions to become a regional clean energy supplier with the need to ensure reliable and affordable electricity at home.

Bahlil said the government would not allow foreign interests or diplomatic lobbying to determine its energy export policy, stressing that export permits remained under the authority of his ministry.

The decision comes as bilateral relations between Indonesia and Singapore face renewed pressure over several issues, including cross-border haze and natural gas supplies.

Indonesia recently reduced its pipeline natural gas exports to Singapore by around 8%, citing domestic energy requirements, although Bahlil has said the reduction did not violate existing contractual obligations.

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