Indonesia and Singapore are entering a new phase of energy cooperation, one shaped by the rise of clean-power ambitions and strategic private-capital bets on the region’s downstream energy sector. Two developments mark the partnerships: Indonesia’s preparations to export renewable electricity to Singapore, as reported by RRI.co.id, and KKR (NYSE:KKR)’s $750mn investment into Chandra Asri Group’s expansion in the city-state’s fuel-retail market, Guru Focus reports, are testaments to how Southeast Asia’s energy landscape is undergoing rapid transformation, driven by both government policy and global investors.
Indonesia as a regional clean-energy exporter
Indonesia’s government has signalled its readiness to send green electricity to Singapore following a bilateral agreement that spans a special economic zone, carbon-capture initiatives, and cross-border renewable-energy trading. This cooperation framework gives Indonesian developers access to a merchant-market environment, allowing electricity prices to reflect real-time supply, demand, and carbon-cost dynamics, a stark contrast to Indonesia’s own single-buyer model under state utility PLN.
Eka Satria, President Director of Medco Power Indonesia, confirmed that discussions have been held with potential buyers in Singapore, including major utilities and corporates seeking low-carbon sources. He emphasised that securing export approval from Jakarta would pave the way for Indonesia to become a meaningful clean-energy supplier to the region.
The private sector is already moving. Medco Energi is developing the Bulan Island solar facility in the Riau Islands, targeting 2 GWp of installed capacity with as much as 600 MW to be transmitted via subsea cable to Singapore. The project underscores Indonesia’s intention to leverage its vast solar potential, particularly in coastal and island regions, to help meet regional sustainability demands while generating foreign exchange.
