Indonesia Cuts Natural Gas Exports to Singapore Amid Domestic Priorities and Diplomatic Tensions
Indonesia halted a portion of its natural gas exports to Singapore on Saturday, redirecting supplies to secure internal electricity generation and industrial feedstocks. The reduction removes 31 million standard cubic feet per day from cross-border shipments, drawing 15 million from the Natuna fields in the Riau Islands and 16 million from Sumatra. State agency SKK Migas implemented the adjustment, stating that outbound flows to other international buyers remain unaffected for now.
Indonesia prioritizes domestic gas for petrochemical manufacturing
Indonesia allocates approximately 70 percent of its total natural gas production to domestic markets, with the remaining 30 percent shipped overseas.
Energy and Mineral Resources Minister Bahlil Lahadalia indicated that Jakarta is actively re-evaluating long-term export contracts to prioritize the country’s expanding downstream petrochemical manufacturing sector. The policy shift follows a cabinet meeting marking the second anniversary of President Prabowo Subianto’s administration, during which officials were instructed to adopt survival-oriented strategies amid global geopolitical uncertainty. As state officials, we must translate everything President Prabowo has said into concrete programs to ensure the country’s survival,
Bahlil told reporters in Jakarta.
Bilateral Friction Over Regional Haze
The supply adjustment coincides with heightened diplomatic friction between Indonesia and neighboring countries regarding transboundary haze from persistent wildfires. President Prabowo criticized nations for insulting Indonesia over the smoke crisis across Borneo and Sumatra islands, where deforestation monitor Nusantara Atlas reported more than 1.9 million hectares have burned over a nine-month period. Energy Minister Bahlil issued a direct warning that Jakarta would evaluate economic relationships with countries failing to show mutual respect, mentioning potential contract terminations without naming specific states.
The Malaysian parliament recently urged the Association of Southeast Asian Nations (ASEAN) to hold responsible parties accountable for the smoke pollution. Meanwhile, Indonesian officials have also addressed wider international pressures, including a formal denial from Singapore regarding allegations of intervening with global index providers to downgrade Indonesia’s market classification. So if other countries have a different view of us, they should be careful,
he said, without specifying which countries he was referring to. However, the statement comes amid pressure on Indonesia from several countries. Singapore subsequently issued an official statement denying the allegation.
How much natural gas did Indonesia supply to Singapore?
How much natural gas did Indonesia historically supply to Singapore?
Indonesia provided 145.3 billion cubic feet of natural gas to Singapore in 2024, according to data from the US Energy Information Administration.
What specific gas fields are affected by the export cuts?
The 31 million standard cubic feet per day reduction splits between Natuna fields in the Riau Islands, which lose 15 million, and Sumatra reserves, which lose 16 million.
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