Indonesia Cuts Gas Exports to Singapore

Indonesia has reduced natural gas exports to Singapore by 31 million standard cubic feet per day to prioritise domestic electricity demand, an official said on Saturday.

Djoko Siswanto, head of SKK Migas, the state agency overseeing Indonesia’s oil and gas sector, said the reduction affected supplies from Natuna in Riau and Sumatra.

He said 15 million standard cubic feet per day would be cut from Natuna, while another 16 million standard cubic feet per day would be reduced from Sumatra.

Djoko said the move was intended to ensure a reliable domestic gas supply for electricity generation, adding that authorities would monitor the situation daily.

Singapore is currently the only country affected by the reduction.

Indonesia supplied Singapore with 145.3 billion cubic feet of natural gas in 2024, according to United States Energy Information Administration data. The latest reduction is equivalent to about eight per cent of that annual volume.

The development comes as Indonesia faces a diplomatic dispute with several neighbouring countries over hazardous haze from wildfires on the islands of Borneo and Sumatra.

Indonesian Energy Minister Bahlil Lahadalia said on Thursday that Jakarta was considering reducing gas exports to prioritise domestic consumption and warned that Indonesia would take action against countries that failed to respect the country.

President Prabowo Subianto also criticised unnamed countries on Wednesday for what he described as insults directed at Indonesia over the haze crisis.

Indonesia has struggled for months to contain wildfires that have affected air quality across the region.

Deforestation monitor Nusantara Atlas reported that more than 1.9 million hectares had been affected by fires in the nine months to September, although the figure has not been independently confirmed by the government.

The resulting haze has pushed pollution levels to dangerous levels in Indonesia, Malaysia, Singapore and East Timor, prompting the Association of Southeast Asian Nations to convene a meeting on the crisis.

Singapore has also pledged to take legal action against companies found responsible for the fires.