The Indonesian government is considering the prospect of exporting electricity to the Philippines and Brunei Darussalam. This endeavour forms part of the strategy to enhance the development of interconnected power networks among ASEAN nations. The Secretary-General of the Ministry of Energy and Mineral Resources (ESDM), explained that the electricity connectivity scheme would involve extending power from Indonesia to Malaysia, which is already in operation. The interconnection partnership will be a topic of discussion during the ASEAN Energy Business Forum in Nusa Dua, Bali. So far, the government has not disclosed the potential value of the collaboration or the business entities that will implement the cross-border interconnectivity. The electrical interconnection is anticipated to drive the utilisation of energy transition in alignment with regional potentials. For instance, between Indonesia and Kalimantan in Malaysia, where hydro energy is a renewable source, or the geothermal resources in the Philippines.
Interconnected electrical networks within several sub-regions in Southeast Asia have been in operation since 2022, connecting Laos, Thailand, Malaysia, and Singapore. The Chairman of the ASEAN Energy Business Forum (ABF) 2023, disclosed that such initiatives could stimulate investments in the clean energy sector. Meanwhile, the International Renewable Energy Agency (IRENA) has assessed that ASEAN countries would require approximately USD 29 trillion of financing by 2050 to facilitate the transition towards clean energy, following a 100% renewable energy scheme. Within Indonesia, according to a study conducted by the International Energy Agency (IEA), the country would need an investment nearly three times higher to support clean energy initiatives by 2030, requiring an additional investment of USD 8 billion annually. The Minister of ESDM outlined various strategies to finance these missions, including mixed financing, public-private partnerships (PPP), international funding, as well as environmentally friendly and innovative financing methods.
