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Indonesia defends gas export cut as Singapore warns of contract breaches

Indonesia's Coordinating Energy Transition Minister Bahlil Lahadalia rejected criticism over a gas export reduction to Singapore, insisting the move complies with contracts and presidential orders.

Indonesia's senior energy minister, Bahlil Lahadalia, defended the recent reduction of gas exports to Singapore, saying the action stays within the bounds of signed contracts and aligns with President Prabowo Subianto's instruction to serve domestic consumers first. He suggested that opponents had not read the contracts and warned against lecturing the energy ministry. The cut, amounting to 31 million standard cubic feet per day, represents less than 2 percent of Singapore's daily gas requirement.

Singapore's Prime Minister Lawrence Wong, without naming officials, called on all signatories to fulfill their contractual obligations and affirmed that Singapore will protect its national interests. The dispute stems from broader tensions linked to the regional haze crisis, highlighting a growing diplomatic rift between the two neighbours.

Why it matters

The row tests the resilience of Indonesia-Singapore energy ties and raises questions about contract enforcement in regional trade.

How this story developed

  1. Sep 28 Civil groups sue Indonesian government over West Kalimantan fire negligence
  2. Oct 8 Prime Minister Anwar said the worsening haze is a serious health risk and has asked President Prabowo to take action, while Malaysia ramps up cloud seeding.
  3. Oct 10 The class‑action suit moved to a hearing in Pontianak, where no defendants were present.
  4. Oct 15 The government, led by Sustainability and Environment Minister Grace Fu, is gathering evidence and keeping legal options open as PSI levels in western Singapore entered the very unhealthy range. The 2014 law allows fines up to S$100,000 per day, capped at S$2 million, for companies whose fires produce prolonged haze. Enforcement has been challenging, with limited data from Indonesian authorities and four firms still under investigation. Fu also urged Indonesia to curb the fires and called for ASEAN cooperation.
  5. Oct 16 President Prabowo appointed army general Kristomei Sianturi to lead BNPB.
  6. Oct 16 Indonesia formally accepted regional assistance and technical talks on its implementation are underway.
  7. Oct 16 Legal notices were served on seven Indonesian firms for their role in the haze.
  8. Oct 19 Student Alliance of Gadjah Mada University addressed ASEAN Secretary‑General urging scrutiny of Indonesia’s compliance and acceptance of regional firefighting support.
  9. Oct 19 Malaysia specified that it will provide three helicopters and 52 firefighters to support Indonesia’s fire‑fighting efforts.
  10. Oct 20 Indonesia’s BNPB and army chief launched a joint firefighting push in Central Kalimantan.
  11. Oct 22 President Prabowo publicly blamed corporations and pledged to identify them.
  12. Oct 23 Malaysia said it will raise the haze issue with Indonesia at the upcoming ASEAN foreign ministers’ meeting.
  13. Oct 23 Energy minister Bahlil announced a review of Indonesia's gas allocation, aiming to shift more supply toward local petrochemical use.
  14. Oct 25 Indonesia announced the cut in pipeline gas shipments to Singapore.

In this story

gas export cutcontract complianceregional hazeenergy supplyIndonesia Singapore tensionsdomestic consumption
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