JAKARTA, December 3, 2025 – PT Medco Energi Internasional Tbk (MedcoEnergi), through its subsidiary Medco Power Indonesia, affirmed Indonesia's readiness to become a key player in the clean energy supply chain in Southeast Asia. The company is currently finalizing plans to export green electricity to Singapore through the development of a giant 2 Gigawatt peak (GWp) Solar Power Plant (PLTS) located in Pulau Bulan, Riau Islands.

This ambitious project is designed to deliver up to 600 Megawatts (MW) of low-carbon electricity to the Lion City via the construction of an undersea cable. This step aligns with Indonesia's commitment to dominate the renewable energy market in the region.

Permits and Premium Market Scheme

Eka Satria, President Director of Medco Power Indonesia, stated that the company has received approval and export permits from the government. Currently, the company's focus is the finalization of communication with potential buyers in Singapore, ranging from utilities to large companies that require low-carbon energy supply to meet their sustainability targets.

The project will enter Singapore's unique electricity market, utilizing the "merchant market" scheme. Under this scheme, the producer is not bound to a single buyer (like PLN in Indonesia).

"The market is very unique; it's called a merchant market. So, we do not have one single buyer," said Eka. "The price can indeed be premium, but there is also a risk because the price fluctuates according to the energy market price and the carbon market price there."

Investment Conditions for Singapore

This clean electricity export plan is also part of a broader political agreement between Indonesia and Singapore. The Indonesian government, through the Ministry of Energy and Mineral Resources (ESDM) and the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves), previously emphasized that export permits are granted with conditions that benefit the domestic economy.

The main requirement put forward by Indonesia is that Singapore must include a minimum investment of US$10 billion (around IDR 162 trillion) in Indonesia, as well as participate in developing a green industrial area in Batam, Bintan, and Karimun (BBK), Riau Islands. This requirement aims to create an ecosystem for the downstream manufacturing of NRE in Indonesia, including the solar panel industry and Battery Energy Storage System (BESS).

Strengthening Indonesia's Position

By prioritizing private companies like Medco in this export project, the government hopes to:

• Attract Investment: Draw strategic foreign investment, particularly for the NRE sector and related technology.

• Create an Ecosystem: Encourage the growth of the renewable energy manufacturing industry in the Riau Islands.

• Foreign Exchange: Increase the country's foreign exchange earnings from the sale of premium clean electricity abroad.

The Medco Pulau Bulan PLTS project is one of several private initiatives prepared to meet Singapore's low-carbon electricity needs, the demand for which reaches 3.4 GW, marking a new era for Indonesia as a regional clean energy exporter.