Indonesia Holds Off on ASEAN Power Grid Deal Until Terms Are Win-Win
Indonesia is holding back from signing an agreement linked to the ASEAN Power Grid, saying it wants to make sure any deal delivers fair and meaningful benefits for all countries involved.
Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia said the country remains open to joining the regional electricity initiative, but only when the terms are considered mutually beneficial.
The issue was recently discussed with Malaysia’s energy minister, who raised Indonesia’s participation in the ASEAN Power Grid and the possibility of moving forward with the agreement.
Bahlil confirmed that Indonesia is currently the only ASEAN member yet to sign the agreement. However, he said this is not because Indonesia is against regional electricity cooperation. Instead, Jakarta wants to ensure the arrangement does not create an imbalance between the benefits received by participating countries.
His position was straightforward: Indonesia is willing to sign when the agreement becomes genuinely win-win.
For Indonesia, regional energy cooperation could create opportunities to export electricity and strengthen connections with neighbouring countries. At the same time, the government wants to ensure that the value of Indonesia’s electricity resources and the country’s own energy requirements are properly taken into account.
The ASEAN Power Grid has been part of the region’s long-term energy cooperation plans since it was first proposed by ASEAN leaders in 1997. The initiative aims to connect the electricity systems of ASEAN member states and make cross-border electricity trading easier.
In 2025, ASEAN energy ministers endorsed an enhanced Memorandum of Understanding designed to strengthen regional electricity connectivity and cooperation.
Indonesia’s decision to wait for more favourable terms highlights the importance of balancing regional cooperation with national interests. As electricity demand continues to rise across Southeast Asia, agreements involving energy supply, pricing and infrastructure are becoming increasingly important.
Bahlil also said Indonesia has received interest from several neighbouring countries that want to import electricity. Indonesia, he said, is open to exporting power, but the terms must work for both sides.
The country is also preparing for a significant increase in domestic electricity demand as its economy grows. Under President Prabowo Subianto’s administration, the government has placed greater emphasis on strengthening Indonesia’s energy self-sufficiency while expanding electricity generation.
Under Indonesia’s 2025–2034 Electricity Supply Business Plan, known as RUPTL, the country plans to add 69.5 gigawatts of electricity generation capacity. Around 70 per cent of the additional capacity is expected to come from new and renewable energy sources.
Indonesia is also pursuing a much larger solar power programme beyond the RUPTL. The government plans to develop an additional 100 GW of solar power, with estimated investment needs of between US$70 billion and US$73 billion.
The first phase of the solar programme has already moved forward, with around 5.5 GW launched this year. The government is also preparing to begin tenders for another 25 GW to 30 GW of solar capacity.
Bahlil said the government wants to make the process more efficient and encourage companies with strong technology capabilities to participate in the projects.
For Indonesia, the ASEAN Power Grid is therefore about more than simply connecting electricity networks. It is also about determining how regional energy cooperation can support economic growth, investment, energy security and domestic priorities.
As ASEAN countries work toward deeper electricity connectivity, Indonesia’s position sends a clear message: regional cooperation remains on the table, but Jakarta wants the final arrangement to deliver benefits that it considers fair.
The next stage of negotiations could therefore be important for the future of cross-border electricity trade in Southeast Asia, particularly as countries look for more reliable and sustainable energy sources to support their growing economies.
Source: Bernama