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Indonesia has agreed to export 3.4 GW of renewable electricity to Singapore by 2035, with potential investments of USD 30 billion to USD 50 billion in solar energy infrastructure and the creation of approximately 418,000 jobs. However, Indonesia faces significant challenges related to energy security, fossil fuel subsidies, and an uneven transition to renewable energy.

Domestic policy mandates that energy exports must not compromise local energy needs, restricting the export capacity of renewable sources. The Riau Islands, a key region for these exports, possesses substantial renewable energy potential but struggles with electricity access, as 38 inhabited islands remain without power.

Furthermore, coal remains dominant in Indonesia's energy mix, which complicates efforts to scale up renewable energy. The government aims for a renewable energy mix target of 19% to 23% by 2030, but achieving this goal is hindered by existing policies favoring cheaper fossil fuels and the need for greater domestic energy access.