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Indonesia Says Power Exports Unlikely Soon as Domestic Demand Comes First

Indonesia Says Power Exports Unlikely Soon as Domestic Demand Comes First

Jean Kasongo

Jean Kasongo

1h ago·3
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Indonesia is unlikely to sell electricity abroad in the near term because the country still needs the power for itself, according to its coordinating minister for downstreaming and energy transition, Bahlil Lahadalia. Speaking at the Presidential Palace in Jakarta on Monday, Bahlil said overseas sales remain possible only if buying countries accept the price Jakarta sets, CNA reported. He holds the energy and mineral resources portfolio as well.

Why it matters

The position casts doubt on plans by neighbouring countries, Singapore among them, to bring in low-carbon electricity from Indonesia. Singapore has already given conditional approvals to companies seeking to import such power, CNA noted. Bahlil did not single out any nation in his remarks, which were carried by Indonesian media.

His comments also land at a sensitive moment in energy trade between the two countries. Last month Indonesia started trimming natural gas deliveries to Singapore, redirecting the fuel to domestic power generation. The upstream regulator SKK Migas told CNA the step was meant to keep domestic gas supplies reliable for electricity production.

Price first, exports second

Bahlil told reporters that the government has worked out what it considers a fair export price. He said the sovereign wealth fund Danantara should resist foreign lobbying to push that price down, and he stressed that export permits are issued by his ministry, not the fund. "I have reminded Danantara, do not let them lobby you," he said, according to CNA.

The same message came earlier on Monday at the 2026 Mineral and Coal Convention and Exhibition in Jakarta, where he said Indonesia would not be in a position to export electricity soon because domestic needs come first. Any power deal, he added, has to work for both sides. If the two parties cannot settle on a price, he said, the government will not go ahead and will meet demand at home instead.

Gas diversion stays within contract limits

The gas reduction to Singapore amounts to about 31 million standard cubic feet per day, made up of 15 million from Natuna and 16 million from Sumatra. Natuna volumes were redirected to PLN Batam through the WNTS–Pulau Pemping–Batam pipeline, while Sumatra supplies were rerouted via the TGI pipeline to serve electricity needs in Batam, Bintan and Sumatra.

Bahlil said the cut stays inside the minimum contractual range of roughly 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," he said. He attributed the situation partly to maintenance work and partly to domestic demand, adding that the figure covers gas alone and not the LNG Indonesia supplies.

Singapore's Ministry of Energy, Trade and Industry pointed CNA to minister Tan See Leng's comments of Oct 25, saying Gas Supply Private Limited would take up the reduction with its suppliers to establish whether it breaches contract terms. The ministry spokesperson said Singapore welcomes the clarification that Indonesian suppliers will honour their agreements.

Bahlil has also argued that LNG sent from Indonesia to Singapore was later resold elsewhere rather than consumed locally. The Jakarta Globe reported that he did not present evidence identifying particular cargoes that were re-exported. Singapore's ministry later said LNG handled by companies based there typically travels straight from the producing country to its final destination without physically passing through Singapore.

What to watch

Whether prospective buyers accept Jakarta's asking price, and whether the gas cut is judged a contract breach, will shape the next phase of the region's cross-border power trade.

#indonesia electricity exports#bahlil lahadalia#singapore power imports#danantara#domestic energy demand

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