Indonesia Open to Idea of Selling Electricity to Singapore


Electrical Commissioning In Industrial Power Systems

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$599
Coupon Price:
$499
Reserve Your Seat Today

Batam Power Plant Plan proposes shifting Indonesian natural gas from exports to Singapore toward Java industries, while exporting electricity via undersea cables; aligns with Singapore energy diversification, SembCorp Gas contracts, and potential coal-fired generation.

 

Breaking Down the Details

A plan to redirect Indonesian gas for local industry and export electricity to Singapore via undersea cables, strengthening energy security.

  • Diverts gas from exports to Java industries
  • Undersea power cables via Pemping and Kepala Jeri
  • Supports Singapore electricity imports from 2017-2018
  • May revise SembCorp Gas sale contracts
  • Coal reserves underpin long-term supply

 

President Susilo Bambang Yudhoyono said he is "open to the idea" of building coal-fired power plants in Batam to produce electricity for sale to Singapore.

 

His remarks were the first on the topic, which was mooted by Deputy Energy Minister Widjajono Partowidagdo in November.

The Batam power plant idea aims to reduce Indonesia’s gas exports to Singapore amid PGN supply delays this year, and divert the gas to local industries in Java instead.

The Indonesian government has two long-term contracts with Singapore’s SembCorp Gas and Gas Supply to supply the city with gas from fields in South Sumatra and the Riau islands through undersea pipes until 2023.

"If that [the Batam power plant] would serve as a solution, we could proceed with it," Yudhoyono said during a news conference on Monday night. The plan is now being evaluated by the energy ministry as the state utility prepares a road show to brief investors.

The plan comes just as Singapore is planning to import electricity directly, and has signalled readiness to sell more electricity to Malaysia in regional power trade. Singapore now generates all of its electricity - 80 per cent of which relies on imports of natural gas from Indonesia and Malaysia. The other 20 per cent is generated from other sources such as fuel oil, diesel and waste incineration.

The plan to import electricity - likely starting in 2017 or 2018 - is part of a larger effort to increase and diversify Singapore’s energy sources, while Indonesia accelerates generation bidding to expand capacity, which could include nuclear energy in the future.

Kurtubi, director at the Center for Petroleum and Energy Economic Studies, said the project, if approved by Yudhoyono, would likely get the nod from Singapore to amend existing gas sale contracts, while the state utility pursues direct contract awards under current policy.

"Indonesia can convince Singapore that this way, they will get a very long-term supply of electricity because Indonesia has abundant coal," said Dr Kurtubi, who goes by only one name.

The best locations for the power plants are in Pemping and Kepala Jeri islands, where undersea electricity transmission cables to Singapore can be most economically built, said Ahmad Hijazi, head of Batam’s industry, trade and mineral resources department.

 

Related News

Related News

Ontario’s Electricity Future: Balancing Demand and Emissions 

Ontario Electricity Transition faces surging demand, GHG targets, and federal regulations, balancing natural gas, renewables,…
View more

Ontario rolls out ultra-low electricity rates

Ontario Ultra-Low Overnight Electricity Rate lets eligible customers opt in to 2.4 cents per kWh…
View more

BC Hydro Expects To See Electricity Usage Rise This Holiday Season

BC Hydro Holiday Electricity Usage is set to rise as energy demand increases during peak…
View more

Gaza electricity crisis:

Gaza Electricity Crisis drives severe power cuts in the Gaza Strip, as Hamas-PA tensions and…
View more

Ukraine Leans on Imports to Keep the Lights On

Ukraine Electricity Imports surge to record levels as EU neighbors bolster grid stability amid Russian…
View more

Climate change poses high credit risks for nuclear power plants: Moody's

Nuclear Plant Climate Risks span flood risk, heat stress, and water scarcity, threatening operations, safety…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Download the 2026 Electrical Training Catalog

Explore 50+ live, expert-led electrical training courses –

  • Interactive
  • Flexible
  • CEU-cerified