Danantara, Temasek explore broader clean energy and investment cooperation

By Romel S. Gurky

Sovereign wealth fund Danantara Indonesia is expanding discussions with Singapore’s state investor Temasek Holdings on clean energy, cross-border electricity trade and low-carbon industrial development, according to a social media post by CEO Rosan Perkasa Roeslani.

Rosan said the talks with Temasek CEO Dilhan Pillay Sandrasegara focused on opportunities in renewable energy, green industrial zones and electricity interconnection between the two countries, alongside broader discussions on global economic conditions and geopolitical developments.

The engagement builds on earlier meetings between Rosan and Singapore Prime Minister Lawrence Wong, where both sides discussed bilateral investment flows and progress on cross-border electricity trade.

Singapore remains Indonesia’s largest foreign investor, with capital flowing into sectors such as manufacturing, energy and infrastructure that support job creation.

The two countries are advancing plans to export low-carbon electricity from Indonesia to Singapore, particularly from solar projects in Batam, Bintan and parts of Sumatra. The initiative involves subsea transmission infrastructure and could reach multi-gigawatt capacity.

Singapore has set a target to import up to 30% of its electricity needs by 2035, positioning Indonesia as one of several potential suppliers in the region.

Read also: Danantara, China’s GEM to develop nickel processing hub in Indonesia

Danantara Indonesia, is also seeking a role in the broader initiative, which could involve total investment of around $30 billion. Chief Investment Officer Pandu Sjahrir said the project includes large-scale solar development and cross-border transmission networks.

“We will execute and assess energy exports to Singapore, particularly in solar projects,” Pandu said at a recent conference, adding that Danantara is also considering participation in transmission infrastructure for both export and domestic needs.

Rosan said Temasek’s existing portfolio in Indonesia provides a foundation for expanding cooperation into clean energy, green industrial development and low-emission digital infrastructure such as data centers.

He added that future collaboration is expected to move beyond existing projects toward larger initiatives aimed at strengthening downstream industries, enhancing export competitiveness and creating jobs.

Discussions are ongoing, with key issues including regulatory arrangements, export approvals and pricing mechanisms still under negotiation as both countries work to advance long-term energy cooperation.

Editing by Alexander Ginting