Indonesia is stepping firmly onto the global stage as a contender in the race for green energy leadership, following a landmark cooperation agreement with Singapore to export clean electricity. The deal, which was formalized on June 13, 2025, when Indonesia’s Minister of Energy and Mineral Resources, Bahlil Lahadalia, signed a memorandum of understanding (MoU) with Singapore, sets the stage for Indonesia to supply up to 3.4 gigawatts (GW) of clean electricity to its neighbor through 2035. This partnership, hailed by experts and government officials alike, is being viewed as a significant opportunity for Indonesia to transition from a raw materials exporter to a purveyor of high-value, processed energy products.
Rachmawan, a lecturer at the Department of Nuclear Engineering and Engineering Physics at Universitas Gadjah Mada (UGM), was among the first to publicly weigh in on the implications of the agreement. According to ANTARA, he described the cooperation as a "great opportunity for Indonesia to become the king of green energy." He emphasized that the export of electricity marks a pivotal shift in Indonesia’s economic strategy. "This electricity export is one way, because we are no longer selling raw materials, but processed products," he explained on September 10, 2025. This sentiment was echoed in coverage by UGM’s official news portal, which highlighted the government’s ambition to claim the title of ‘king of green energy’ on the world stage.
At the heart of the agreement is the export of clean, low-carbon electricity—primarily generated from renewable sources in Sumatra—across undersea cables to Singapore. The project is not just about exporting electrons; it’s about exporting value. As Rachmawan pointed out, "Electricity export is exporting a high value-added product rather than raw materials." This approach is expected to bring substantial benefits to the national economy, encouraging the construction of new power plants within Indonesia and, in turn, creating new jobs and boosting the use of locally manufactured components.
There’s more to the story than just economic growth, though. The pricing structure for this exported electricity is pegged to international market rates, making it attractive for investors and lucrative for the country. "The pricing for the electricity export is at international prices, making it attractive for businesses and beneficial for the country," Rachmawan said. This, he believes, will help spur the growth of Indonesia’s green economy, as the income generated will come from the sale of electricity produced by low-emission sources. "We generate income with low-carbon activities," he remarked, underscoring the environmental as well as financial advantages of the initiative.
Of course, any major energy export project raises concerns about domestic supply, especially in a country as vast and diverse as Indonesia. But Rachmawan was quick to address these worries, offering a reassuring analogy: "Sumatra has vast energy potential from hydroelectric power plants (PLTA), gas-steam power plants (PLTGU), and solar power plants (PLTS), so using a small area for export will not significantly impact local electricity supply." He elaborated that only a fraction of Sumatra’s available land and resources would be needed to fulfill the export commitments to Singapore. "If we only need a small part of Sumatra for electricity exports to Singapore, I think it will not have too much impact on the electricity supply needs elsewhere in Sumatra," he said, according to UGM’s reporting.
Still, balance is key. Rachmawan cautioned that any export scheme must be carefully calibrated to ensure that domestic needs are not neglected. "There needs to be a balance between export and domestic electricity needs, with possible restrictions if export plants are located in areas needing increased local supply," he advised. He advocated for special restrictions if export-oriented power plants are sited in regions where local electricity access still needs to be improved. This, he argued, would help prevent potential shortages and ensure that the benefits of the export deal are shared broadly across Indonesian society.
The business side of the equation is just as crucial. Rachmawan stressed that a "mature business scheme is essential to remain competitive and attractive to private investors; otherwise, investment may go to neighboring countries." In other words, if the terms of the deal aren’t compelling enough, Indonesia risks losing out on investment to regional rivals. "If the scheme is not competitive, private parties might prefer to invest in neighboring countries. If that happens, we will lose this big opportunity," he warned. To keep Indonesia at the forefront of this green energy boom, the export scheme must be meticulously designed to entice both domestic and international investors.
One of the more technical challenges—constructing the undersea cable infrastructure necessary to transmit electricity from Indonesia to Singapore—has been largely overcome, according to Rachmawan. He noted that "undersea cable infrastructure for export is technically feasible with experienced technicians and thorough studies." Years of research and the expertise of local engineers mean that the physical act of connecting the two countries’ power grids is no longer a major barrier. But, as he pointed out, "careful planning is required to minimize impacts on maritime traffic routes." The busy shipping lanes between Indonesia and Singapore are vital arteries of global commerce, and any new infrastructure must be built with minimal disruption to these routes. "Planning must minimize disruption to maritime traffic in the area," he concluded.
The broader implications of the Indonesia-Singapore electricity export deal are hard to overstate. By shifting from raw material exports to high-value, green energy products, Indonesia is positioning itself not just as a supplier, but as a leader in the global transition to sustainable energy. The agreement is also a potential model for other countries seeking to balance domestic needs with international opportunity, all while advancing the green economy and creating jobs at home.
As the world’s demand for clean energy continues to surge, Indonesia’s bold move could well mark the start of a new era—one in which the nation becomes a powerhouse of renewable energy, both literally and figuratively. The next decade will reveal whether this vision becomes reality, but for now, Indonesia’s ambition to become the king of green energy is looking more attainable than ever.