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Current Affairs

Can Singapore and Indonesia’s energy push kick-start regional power grid?

Singapore and Indonesia’s latest push to trade low-carbon electricity could become more than a bilateral energy deal, with analysts saying it might offer Southeast Asia…

By Samantha Johnson / July 7, 2026
Singapore and Indonesia’s latest push to trade low-carbon electricity could become more than a bilateral energy deal, with analysts saying it might offer Southeast Asia a practical test case for a regional power grid that has long struggled to move from ambition to implementation.
The cooperation, centred on electricity-import deals and cross-border interconnector projects, is also expected to strengthen Singapore’s energy security and help the city state reach its sustainability goals, while boosting Indonesia’s green economy.
The projects would allow both countries to deepen cooperation on energy security and diversification, Singapore’s Prime Minister Lawrence Wong said.

“Indonesia has tremendous potential in renewable energy and Singapore would like to partner with Indonesia in unlocking this potential,” he said at the Singapore-Indonesia Leaders’ Retreat in Jakarta on Monday.

A woman walks past the logo of Indonesia’s sovereign wealth fund Danantara in Jakarta. Photo: Reuters
A woman walks past the logo of Indonesia’s sovereign wealth fund Danantara in Jakarta. Photo: Reuters

Jakarta’s sovereign wealth fund Danantara signed agreements with Singapore firms Keppel Electric and Sembcorp Industries on Monday to explore collaboration on the offtake of imported low-carbon electricity.

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