The Indonesian government demanded Singapore to assist in the development of a solar power plant in Indonesia, as a requirement to import electricity from Indonesia.
Dadan Kusdiana, Director General of New, Renewable Energy and Energy Conservation (EBTKE), said that the agreement is part of cross-border electricity trade between Indonesia and Singapore. The trade covers two aspects such as the development of the upstream industry and the export of electricity.
This demand is part of an effort to pressure Singapore to build electricity transmission infrastructure in Indonesia, resulting in an increase domestic components ratio.
Indonesia-Singapore signed MoU to support ASEAN power grid
Previously, in March, President Joko Widodo signed a Memorandum of Understanding (MoU) with Prime Minister Lee Hsien Loong regarding renewable energy during a visit to Singapore.
The MoU aims to support commercial arrangements through the development of renewable energy capabilities for cross-border electricity transmission and trading infrastructure.
“It will strengthen energy infrastructure and energy transition and energy security for Singapore and Indonesia and also support regional initiatives such as the ASEAN Power Grid, it is a win-win result,” said Loong, as reported by katadata.co.id, on March 16, 2023.
Sunseap Group, an EBT company from Singapore also signed an MoU for the development of a solar power plant (PLTS) in the Riau Islands.
The MoU was signed by several companies such as Sumitomo Corp, Samsung C&T Corp., Oriens Asset Management, ESS Inc., Durapower Group, PT Mustika Combol Indah and PT Agung Sedayu Group.
The PLTS that Sunseap will build will have a total capacity of 7 Gigawatt-peak (GWp), including a floating PLTS of 2.2 GWp which will be built on the island of Batam. This PLTS will be exported to Singapore via underwater power cables.
ASEAN PowerGrid
The ASEAN Power Grid is one of seven main programs for the 2023 Indonesian Chairmanship of ASEAN in the Energy Sector.
The seven main programs are ASEAN Power Grid, Trans-ASEAN Gas Pipeline, Coal and Clean Coal Technology, Energy Efficiency and Conservation, Renewable Energy, Regional Energy Policy and Planning and Civilian Nuclear Energy.
The ASEAN Power Grid was initiated by several countries including: Brunei, Indonesia, Malaysia and the Philippines (BIMP) to duplicate the Laos-Thailand-Malaysia and Singapore multilateral electricity trade project (LTMS).
Infrastructure development as part of the ASEAN Power Grid prioritizes new and renewable energy sources (EBT) to increase the utilization of EBT in the ASEAN region (more than 17,000 GW currently) and to achieve the EBT capacity target of 35% in 2025.
Opposing views in the government
In relation to the government’s plan to export electricity to Singapore, Bahlil Lahadalia, Minister of Investment, argued that the construction of the solar power plant should be intended to be used by domestic industries.
“Because if we sell the electricity to other countries, the industry will flee there,” said Lahadalia, as reported by katadata.co.id, on May 18, 2022.
Meanwhile, Luhut Binsar Pandjaitan, the Coordinating Minister for Maritime Affairs and Investment, expressed his disappointment because the entire project for the construction of the electricity transmission to Singapore was not given to Indonesia.
