Indonesia, Singapore at odds as gas export cut raises energy concerns
Coordinating Downstream and Energy Transition Minister Bahlil Lahadalia said that the government would evaluate contracts with countries that did not “show respect” to Indonesia.
Indonesia and Singapore are experiencing tensions after Indonesia reduced its gas exports to Singapore, leading to energy concerns. Energy Minister Bahlil Lahadalia stated that the government would assess contracts with countries that fail to show respect towards Indonesia. This move comes after a senior minister implied that the cuts were directed at countries demonstrating "no respect" to Indonesia.
However, analysts argue that the redirected gas would not significantly alleviate domestic shortages due to the limited volumes involved and industries relying on the gas. Additionally, abrupt export cuts could undermine Indonesia's reputation as a trustworthy trading partner and its commitment to fulfilling commercial contracts.
The reduction in gas supply from Natuna to PLN Batam and Batam to Singapore totals 31 million standard cubic feet [mmscfd]. This decision aligns with Article 8 paragraph (1) of the Oil and Gas Law, which mandates the government to prioritize domestic use of natural gas.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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