Indonesia’s sovereign wealth fund, Danantara, and Singapore firms Keppel Electric, Sembcorp Industries and Singapore Energy Interconnections signed a memorandum of understanding on Monday to advance a cross-border electricity project. The agreement was announced in Jakarta during Singapore Prime Minister Lawrence Wong’s visit following talks with Indonesian President Prabowo Subianto.
The project forms part of efforts to strengthen energy cooperation between the two neighbours and support regional trade in low-carbon electricity. Singapore and Indonesia are still negotiating pricing for the proposed power exports, according to Indonesian Energy Minister Bahlil Lahadalia.
Bahlil said both sides were making progress toward a mutually beneficial agreement and expressed confidence that negotiations would soon reach a breakthrough. He said the objective was to ensure a win-win outcome for both countries.
The latest agreement builds on a series of energy cooperation deals reached in 2025, including Indonesia’s plan to export up to 3.4 gigawatts of low-carbon electricity to Singapore by 2035, supporting the city-state’s clean energy and decarbonisation goals.