Bahlil says Singapore gas cut honors contract terms
JAKARTA, thekabarnews.com—Indonesia has defended its decision to reduce pipeline gas exports to Singapore, saying the adjustment remains within contractual limits while calling for mutual respect in...
JAKARTA, thekabarnews.com—Indonesia has defended its decision to reduce pipeline gas exports to Singapore, saying the adjustment remains within contractual limits while calling for mutual respect in bilateral relations.
Coordinating Downstream and Energy Transition Minister Bahlil Lahadalia delivered the message after a national energy security meeting in Jakarta on Monday, Oct. 26.
Bahlil, who also serves as energy and mineral resources minister, said Indonesia remained committed to international agreements. However, he expected partner countries to treat its domestic policy decisions fairly.
“Indonesia respects rules, and the Indonesian government respects rules. But at the same time, do not ask to be respected while finding it difficult to respect our decisions. The point is, “Do not belittle other countries,” Bahlil said at a press conference.
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His remarks followed Indonesia’s decision to reduce gas shipments to Singapore by 31 million standard cubic feet per day (MMSCFD). This change began on Oct. 24.
The reduction comprised 15 MMSCFD from fields connected to the Natuna pipeline and 16 MMSCFD from Sumatra. These figures are according to Indonesia’s upstream oil and gas regulator SKK Migas.
Bahlil said the adjustment represented about 8 percent of Indonesia’s pipeline gas supply to Singapore. Previously, supply stood at approximately 409.55 MMSCFD.
He maintained that the revised volume remained above the minimum delivery threshold established under the relevant commercial agreements.
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“We have reduced it by only about 8 percent. We would breach the contract only if the cut reached 10 percent,” he said.
The government attributed the reduction to maintenance requirements and rising domestic demand. Part of the redirected supply will support electricity generation and industry in Batam, Bintan and other parts of Sumatra. This move reinforces Jakarta’s policy of prioritizing domestic energy security.
Singaporean Prime Minister Lawrence Wong has stated that all parties should honor commercial gas agreements. He added that importers would protect their contractual rights.
However, Singapore’s Energy Market Authority estimated that the reduction represented less than 2 percent of the country’s total daily gas demand. Officials said the change was therefore unlikely to have an immediate effect on short-term electricity prices, according to Channel News Asia.
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Singapore receives pipeline gas from Indonesia and Malaysia while also importing liquefied natural gas from international suppliers. In 2025, pipeline deliveries accounted for 43 percent of its gas imports. Liquefied natural gas supplied the remaining 57 percent.
Bahlil stressed that Indonesia would continue observing its contractual obligations while placing national energy requirements first.
“International relations must be built on mutual respect among all parties,” he said.
The episode underscores the close energy relationship between the two neighbors. Its longer-term impact will depend on whether both governments and the companies involved can reconcile contractual commitments with Indonesia’s growing domestic gas demand.
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