Price Disagreements Stall ASEAN Power Grid Pact as Indonesia Prepares $73B Solar Blueprint

TANGERANG, Investortrust.id — Indonesia has temporarily paused signing the landmark ASEAN Power Grid interconnector agreement, insisting that regional cross-border electricity pricing formulas must guarantee equitable economic returns before Jakarta commits to exporting power.

Speaking to journalists on the sidelines of the Enlit Asia – MKI Electricity Connect 2026 conference at ICE BSD in South Tangerang on Tuesday, Sept. 22, 2026, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that pricing discrepancies remain the decisive barrier holding back the pact.

"The price is not yet win-win," Bahlil stated on Tuesday.

Bahlil explained that several neighboring countries have formally requested electricity imports from Indonesia under the regional transmission framework. While Southeast Asia’s largest economy is receptive to sharing its energy resources, the minister emphasized that export contracts must not be structured to disadvantage the supplying nation.

"I also want to use this forum to convey that several of our neighboring countries have asked us to export electricity," Bahlil said. "For us, Indonesia has no issue with exporting. After all, we should help one another. But the price cannot just be whatever you want. That is not allowed. The price must be win-win. Cooperation means mutual benefit, not putting pressure on each other."

Eastern Etiquette and Regional Power Negotiations

Bahlil disclosed that technical talks regarding grid integration have been conducted directly with Malaysia’s energy minister as part of regional commitments framed during the ASEAN Summit in Manila. However, Indonesian authorities are conducting exhaustive economic modeling before putting pen to paper.

"They say Indonesia is the only one left that hasn't signed, and it is true, I haven't signed yet because according to my calculations it isn't win-win yet," Bahlil noted. "Once it is win-win, I will sign. Win-win means profitable for you, and profitable for us too. And the profit must be fair. It cannot be where you take a 70% profit and we get 30%—that is not win-win."

Addressing prospective trading partners across the Malacca Strait and the wider bloc, the former investment minister called for diplomatic goodwill and balanced negotiations.

"To my brothers and sisters in neighboring countries, please let us use Eastern etiquette when negotiating," Bahlil remarked. "I know how you play your cards. I know you."

RUPTL Overhaul to Anchor 100 GWp Solar Drive

While holding a firm line on regional power sales, Jakarta is moving forward with an overhaul of its domestic power architecture. Bahlil announced that the Ministry of ESDM is preparing a revision to the national Electricity Supply Business Plan (RUPTL) to provide legal and regulatory footing for an additional 100 gigawatt peak (GWp) of solar photovoltaic (PLTS) generation.

Under the prevailing RUPTL 2025–2034, the state had programmed 69.5 gigawatts (GW) of aggregate new capacity to meet growing domestic load demand, with roughly 70% allocated to new and renewable energy (EBT) and supported by roughly 48,000 circuit kilometers of high-voltage transmission lines. Delivering that baseline alone requires an estimated Rp 2,600 trillion to Rp 2,700 trillion ($163.5 billion to $169.8 billion) in capital outlays.

Adding 100 GWp of solar farms to the master plan will expand capital requirements by tens of billions of dollars.

"This 100-gigawatt solar program, according to calculations made by my team, will reach approximately US$70 billion to US$73 billion in total investment," Bahlil revealed on Tuesday. "We will definitely carry out adjustments and revisions to the RUPTL because it is impossible for the 100 GWp solar program to run without an underlying regulatory framework. We are currently hammering out this RUPTL."

Firm Decarbonization Resolve

Bahlil stressed that the solar expansion forms a central pillar of Indonesia's national drive to achieve net-zero emissions between 2050 and 2060. He underscored that the administration of President Prabowo Subianto will not dilute its decarbonization commitments, even as developed economies adjust or scale back their climate targets.

"President Prabowo instructed us that even if great nations choose to pull back, Indonesia will remain consistent in meeting our net-zero emission target by 2050 to 2060," Bahlil said.

Translating this mandate into commercial reality will require extensive domestic supply chain development, local equipment manufacturing, and cross-sector financing structures.

"This is not a small market; this is a very massive market," Bahlil said, closing his address. "To make this happen, there must be active collaboration among the government, academia, and enterprise."