Why Indonesia Has Yet to Sign ASEAN Power Grid Pact

Jakarta, September 22 — Indonesia has not yet signed an agreement related to the Asean Power Grid (APG), stating that it will only do so when the terms are deemed mutually beneficial and fair to all parties involved. This stance was expressed by Energy and Mineral Resources Minister Bahlil Lahadalia during a recent discussion with his Malaysian counterpart.

Lahadalia confirmed that Malaysia's energy minister had informed him that Indonesia is the only country yet to sign the APG agreement, citing the need for a win-win situation. Such a scenario means that both Indonesia and Malaysia would benefit fairly, with benefits not disproportionately favoring one side over the other.

The APG, initially proposed by Asean leaders in 1997, aims to connect the electricity systems of member states and facilitate cross-border power trade. Asean energy ministers endorsed an enhanced Memorandum of Understanding in 2025 to strengthen regional electricity connectivity. Meanwhile, Lahadalia noted that several neighboring countries have shown interest in importing electricity from Indonesia, and the country is open to such exports, provided the terms are mutually advantageous.

He emphasized that Indonesia would not export electricity at prices that are too low, as it needs to help other countries while maintaining its energy self-sufficiency.

Indonesia's domestic electricity demand is expected to continue growing in tandem with economic expansion. In response, the government intends to increase power generation capacity by 69.5 gigawatts (GW) under its 2025-2034 Electricity Supply Business Plan (RUPTL), with 70% of the new capacity coming from renewable energy sources.

In addition to the RUPTL, Indonesia is pursuing a broader solar power program, which requires an estimated US$70 billion to US$73 billion in investment. So far, around 5.5 GW of solar capacity has been launched in the first phase of the program, and the tender process for an additional 25 GW to 30 GW is anticipated to commence soon.

The government is also working to streamline procedures to attract competitive companies with strong technological capabilities.