Indonesia stalls ASEAN Power Grid signing over unresolved electricity pricing
Indonesia's energy minister said the country will not sign the ASEAN Power Grid pact until it secures a mutually beneficial electricity price arrangement.
During the Electricity Connect 2026 event in Tangerang, Bahlil Lahadalia, Indonesia's minister of energy and mineral resources, said the nation has not yet ratified the ASEAN Power Grid agreement because price terms remain unsettled. He indicated that Indonesia has approached Malaysia to discuss the commitment that emerged from the 48th ASEAN Summit in Cebu, but insists on a win-win arrangement that distributes profits fairly, rejecting a 70-30 split.
Lahadalia highlighted the importance of regional cooperation for achieving energy security, a point also made by President Prabowo Subianto, who urged ASEAN members to accelerate an integrated energy network in response to Middle-East geopolitical tensions. The minister added that the BIMP-EAGA region holds significant potential for renewable projects such as hydropower, solar and wind. He affirmed that Indonesia will sign the pact once a balanced agreement is reached.
Why it matters
Indonesia's holdout could delay regional electricity sharing, affecting energy security and renewable development in Southeast Asia.
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