Indonesia Plans Clean Electricity Exports to Singapore by Late 2026

Danantara Indonesia sovereign fund announced on May 11 that Indonesia plans to start exporting clean electricity to Singapore by the end of 2026, according to the announcement. Six to seven companies have secured conditional licenses from Singapore to participate in the project, with talks ongoing to advance the initiative.

Investment Scale and Capacity

The clean electricity export project could draw approximately US$30 billion in investment and add around 3 gigawatts of capacity to Indonesia’s power generation, according to Danantara’s chief investment officer Pandu Patria Sjahrir. Part of the generated electricity would be used domestically as Indonesia works toward achieving a 100 gigawatt power capacity target, Sjahrir added.

Licensing and Timeline Considerations

While the end-of-2026 target has been announced, conditional licenses represent only a preliminary step in the approval process. Companies still need to meet requirements such as securing financing before Singapore’s Energy Market Authority (EMA) can grant an electricity importer license, which is required before construction and commercial operations can begin. A 1 gigawatt joint venture between Singapore-based RGE and French energy company TotalEnergies aims to start commercial operations in 2029. Singapore’s energy authority has indicated that some projects with conditional approvals may not proceed as developers revisit their plans.

Political Support and Broader Energy Strategy

President Prabowo Subianto is scheduled to meet Singapore’s Prime Minister Lawrence Wong in June to deepen cooperation and advance the project. Danantara has positioned the Singapore export initiative as part of Indonesia’s wider energy transition and investment push. Through Danantara Investment Management (DIM), Danantara signed a Head of Agreement with state utility PT Perusahaan Listrik Negara (Persero) (PLN) to explore investments in renewable power plants built by PLN subsidiaries, with the first phase estimated at approximately 20 gigawatts and spending of roughly 600 trillion rupiah (approximately US$36 billion).

Broader Renewable Energy Opportunity

The Singapore tie-up is designed to create additional value in Indonesia, including support for a local solar panel manufacturing industry. The export plan aligns with Danantara’s objective of attracting investment across multiple renewable sectors, with a Danantara executive estimating the broader opportunity at up to approximately US$200 billion across solar, hydro, waste-to-energy, and other renewable projects.