Indonesia cuts natural gas exports to Singapore by 31 BBTUD from Oct 24

Indonesia has been planning to reduce gas exports to Singapore for several years to meet growing domestic demand. In 2022, Jakarta agreed to extend gas supplies to Singapore until 2028, but at lower volumes than under the previous contract.

In April 2025, Djoko said Indonesia planned to cut gas exports from Sumatra to Singapore, while using supplies from Natuna to make up for the reduction, Reuters reported.

The following month, Indonesian energy company MedcoEnergi signed a gas swap agreement with Singapore buyers Sembcorp Gas and Gas Supply, among others, allowing more gas from Sumatra to be redirected for domestic use. The latest announcement, however, involves cuts from both Sumatra and Natuna.

The move also follows increasingly pointed remarks by Bahlil about the need to safeguard Indonesia’s energy resources and prioritise domestic consumption.

On Oct 21, Bahlil said the government was considering not renewing gas export arrangements with neighbouring countries, citing national energy security amid global geopolitical uncertainties.

“I am also perhaps thinking of not extending gas exports to neighbouring countries because we have to survive and meet domestic needs,” he told reporters after a Cabinet meeting in Jakarta.

On Oct 23, Bahlil said Indonesia currently exports about 30% of its natural gas production, while the remaining 70% is allocated for domestic consumption.

He said the government would review gas allocations to ensure more could be directed towards domestic industries, particularly the petrochemical sector, as Jakarta seeks to expand its downstream processing capabilities.

The reductions also follow warnings by Bahlil that Indonesia could stop exporting energy to countries that failed to show it mutual respect.

On Oct 22, he said Jakarta would review its energy export agreements with countries that did not respect Indonesia, although he did not identify any specific country or dispute.

“I will not hesitate to consider stopping exports to countries that do not respect Indonesia,” he said.

His remarks came after Prabowo likened Indonesia’s natural resources to blood, warning that a body could not survive if it continued to lose blood. The President urged ministers to ensure the country’s resources were used for the benefit of its people.

Singapore counts Indonesia among its main sources of natural gas, with existing import contracts due to expire at the end of 2028, Deputy Prime Minister Gan Kim Yong told Parliament in September 2025.

Separately, Indonesia and Singapore are pursuing plans for cross-border electricity trade, although negotiations over pricing remain unresolved. On Oct 19, Bahlil said the two countries had yet to reach an agreement on electricity exports because of differences over pricing. – Straits Times/ANN