Analysis: Indonesia takes backward step with gas export cuts
The government’s decision to further reduce natural gas exports to Singapore may strengthen domestic energy supplies, but it risks undermining the country's credibility as a reliable trading partner. The move, justified on energy security grounds, could unsettle investors, strain relations with Singapore and weaken ASEAN's efforts to build an integrated regional energy market.
Indonesia has taken a backward step by reducing natural gas exports to Singapore, potentially weakening its credibility as a reliable trading partner. This decision, made during a cabinet meeting on Oct. 1, was justified on energy security grounds, but it could unsettle investors and strain relations with Singapore. President Prabowo Subianto emphasized that many countries prioritize their own needs in times of crisis and criticized the lack of international order, highlighting the Prime Minister's role in defining Indonesia's foreign policy goals.
The Prabowo administration's decision to reduce gas exports to Singapore follows a similar move last year, which also cited domestic energy needs. This policy shift, driven by both energy security concerns and political factors, may have far-reaching consequences for Indonesia's regional energy market and its relations with ASEAN.
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