Indonesia holds off on Asean power grid deal until terms are ‘win-win’

According to the Asean Secretariat, the APG, first proposed by Asean leaders in 1997, seeks to connect the electricity systems of member states and facilitate cross-border power trade, with Asean energy ministers endorsing an enhanced Memorandum of Understanding in 2025 to strengthen regional electricity connectivity. — Picture by Firdaus Latif

First Published: Tuesday, 22 Sep 2026 4:39 PM MYT

JAKARTA, Sept 22 — Indonesia has yet to sign an agreement related to the Asean Power Grid (APG), saying it is prepared to do so once the terms are considered mutually beneficial and fair to all sides.

Energy and Mineral Resources Minister Bahlil Lahadalia said the matter was discussed with his Malaysian counterpart recently, including Indonesia’s participation in the regional power grid initiative and the terms involved.

“Malaysia’s energy minister spoke to me yesterday about how we can implement the Asean Power Grid. They said Indonesia is the only one that has yet to sign, that is true, I have not signed because by my calculation it is not yet win-win. 

“If it is already win-win, I will sign. Win-win means you benefit and we benefit too, and the benefits must be fair. It cannot be that you get 70 and we get 30. That is not win-win,” he said in his speech at the Electricity Connect 2026 here on Tuesday.

According to the Asean Secretariat, the APG, first proposed by Asean leaders in 1997, seeks to connect the electricity systems of member states and facilitate cross-border power trade, with Asean energy ministers endorsing an enhanced Memorandum of Understanding in 2025 to strengthen regional electricity connectivity.

Separately, Bahlil said several neighbouring countries had expressed interest in importing electricity from Indonesia, adding that the country was open to such exports, provided the terms were mutually beneficial.

“For us, Indonesia, there is no problem with exporting because we have to help each other. But the price cannot simply be what you want. It has to be win-win,” he said.

On Indonesia’s domestic electricity needs, Bahlil said demand would continue to grow alongside economic growth, with the government seeking to strengthen energy self-sufficiency under President Prabowo Subianto’s administration.

He said Indonesia plans to add 69.5 gigawatts (GW) of power generation capacity under its 2025-2034 Electricity Supply Business Plan (RUPTL) to meet domestic demand, with 70 per cent of the additional capacity to come from new and renewable energy sources.

Beyond the RUPTL, the government is also pursuing an additional 100 GW solar power programme, which Bahlil said would require an estimated US$70 billion (RM285.5 billion) to US$73 billion in investment.

He said about 5.5 GW under the solar programme had been launched in the first phase this year, while the tender process for another 25 GW to 30 GW is expected to begin, with the government also seeking to streamline procedures for competitive companies with strong technological capabilities. — Bernama