The U.S. Trade and Development Agency (USTDA) signed a grant agreement of approximately IDR 31 billion (US$2 million) with Indonesian national utility PT Perusahaan Listrik Negara (PLN) for a feasibility study to support the development of two cross-border power interconnections between Indonesia and Malaysia.

This project aligns with a key objective in the power sector for the Association of Southeast Asian Nations (ASEAN), aiming to facilitate efficient resource sharing to address increasing energy demands, bolster energy security, and implement clean energy policies and climate protection goals in both countries. Cross-border interconnections enable countries to share electricity, optimizing power supply with local demand, and are especially beneficial for maximizing energy generated from variable renewable sources. USTDA's study will evaluate the feasibility of interconnections between Sumatra in Indonesia and peninsular Malaysia (Sumatra Interconnection), as well as between Kalimantan, Indonesia and Sabah, Malaysia (Kalimantan Interconnection). Delphos International, Ltd., will conduct the study in collaboration with Malaysian power utilities Tenaga Nasional Berhad and Sabah Electricity Sdn Bhd. These new interconnections will be part of a network of 18 potential cross-border connections identified in the ASEAN Interconnection Masterplan Study, which received funding from the U.S. Agency for International Development.