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Mr Made said the political rhetoric over ending gas exports to Singapore did not necessarily reflect the economic realities Indonesia would ultimately face.<\/p>\n
He noted that under Mr Prabowo\u2019s administration, Indonesia has prioritised gas for domestic use<\/a>, particularly to support its downstream industrial development programme.<\/p>\n Downstreaming is the government\u2019s attempt to prevent export of Indonesia\u2019s raw materials and instead create higher-value products locally before exporting them.<\/p>\n Downstreaming presupposes industrial growth, said Mr Made, giving an example of how nickel downstreaming relies heavily on the presence of industries capable of absorbing nickel-derived products, alongside demand from abroad.<\/p>\n Mr Made questioned whether Indonesia\u2019s downstreaming programme could generate sufficient demand for the gas amid a sluggish global economy and domestic economic strain.<\/p>\n \u201cIf downstreaming fails to materialise, domestic demand for gas will naturally decline. In that case, would terminating the contract with Singapore actually be advantageous?\u201d he asked.<\/p>\n Mr Ramadhito of RSIS noted that Singapore’s natural gas sources are well diversified, while Indonesia also faces economic risks in reducing exports.<\/p>\n \u201cRerouting exports domestically can widen the budget deficit, as gas sold at lower domestic prices reduces revenue for Pertamina, which is already under strain because subsidies keep energy prices artificially low during the Iran war,\u201d he said.<\/p>\n Pertamina is Indonesia\u2019s state-owned oil and natural gas conglomerate.<\/p>\n He highlighted that economic nationalism is an ideology the Prabowo administration has espoused, through sovereign investment fund Danantara and the re-routing of commodity exports to state-owned firms such as Danantara Sumberdaya Indonesia (DSI).<\/p>\n DSI is a part of the administration\u2019s plan to centralise exports of key commodities such as coal, palm oil and ferroalloy to tackle concerns about under-invoicing and transfer pricing.<\/p>\n \u201cThese remarks should be read in that context. The haze issue simply inflamed nationalist tendencies in a government that believes the economy is too exposed to foreign capital and interests,\u201d said Mr Ramadhito.<\/p>\n<\/div>\n ECONOMIC REALITY VERSUS POLITICAL RHETORIC Mr Made said the political rhetoric over ending gas exports to Singapore did not necessarily reflect the economic realities Indonesia…<\/p>\n","protected":false},"author":1,"featured_media":95243,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[2611],"tags":[],"class_list":["post-95242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buzz-headlines","wpcat-2611-id"],"brizy_media":[],"_links":{"self":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/95242","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=95242"}],"version-history":[{"count":0,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/95242\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/media\/95243"}],"wp:attachment":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=95242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=95242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=95242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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