Singapore and Indonesia Advance 3.4 GW Cross-Border Solar Power Trade

Indonesia and Singapore Progress Bilateral Negotiations on 3.4 GW Cross-Border Solar Electricity Export Framework

JAKARTA, Indonesia & SINGAPORE — September 3, 2026 — Government and industry stakeholders in Indonesia and Singapore have reached advanced stages in defining the regulatory and commercial framework for a landmark 3.4-gigawatt (GW) cross-border solar power export agreement.  

Under the bilateral initiative, high-capacity photovoltaic facilities combined with utility-scale battery energy storage systems (BESS) will be developed in Indonesia's Riau Islands (including Batam). The generated clean electricity will be transmitted via high-voltage subsea cables across the Singapore Strait to supply approximately 30% of Singapore’s projected electricity demand by 2035.  

Negotiations led by Indonesia's Ministry of Energy and Mineral Resources (MEMR) and Singapore's Energy Market Authority (EMA)—alongside sovereign investment manager Danantara and major international energy consortia including Keppel, Sembcorp, MedcoEnergi, TotalEnergies, and Shell/Vena Energy—are focused on finalizing long-term power purchase tariffs, local content manufacturing rules, and grid interconnection protocols.

The multi-billion-dollar cross-border initiative represents a flagship anchor project for the broader ASEAN Power Grid (APG) vision, designed to establish an integrated regional power market, enhance energy security, and scale localized renewable manufacturing capabilities across Southeast Asia.

"Cross-border power trade is essential for resource-constrained urban centers like Singapore and energy-rich neighbors like Indonesia," said Fabby Tumiwa, Executive Director of the Institute for Essential Services Reform (IESR). "Establishing a transparent, value-accretive electricity pricing structure creates a repeatable template for regional decarbonization."