Singapore Foreign Minister to Visit Indonesia as Gas Cut and Forest-Fire Haze Expose Regional Corporate and Policy Failures
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Singapore's foreign minister is heading to Jakarta as the two countries face a reduction in gas supplies and choking haze from Indonesian forest fires, highlighting the costs of private interests, weak enforcement and strained regional relations.
Indonesia said it will host Singapore's foreign minister on Tuesday as bilateral tensions rise over a recent reduction in piped natural gas and persistent haze from forest fires. Jakarta lowered gas deliveries to Singapore by about 8% on Saturday, citing the need to protect domestic supplies, after the Indonesian energy minister warned of reviewing export contracts with countries it deemed uncooperative.
Singapore relies on natural gas for up to 95% of its electricity generation, and although the cut represents less than 2% of its daily demand, Prime Minister Lawrence Wong said contract parties must "honour their commitments".
"Our nation is a nation that honours contracts, rules. So don't teach Indonesia on how to honour contracts," energy minister Bahlil Lahadalia told reporters, adding that current supplies meet the minimum level required under the agreement.
The haze, driven by Indonesia's most severe forest fires in over a decade, has spread to Singapore, Malaysia and East Timor, prompting health concerns across the region. Singapore has not directly criticised Jakarta but has issued notices to Indonesian firms it holds responsible for the fires.
Senior Minister K. Shanmugam expressed disappointment with remarks from an Indonesian official who claimed the country's forests provide oxygen to Singapore and Malaysia, noting that the region suffers from the actions of companies violating regulations.
Veteran diplomat Bilahari Kausikan described the gas reduction as an "attempt at intimidation" but said it would have limited impact, adding that Indonesia would bear higher long-term costs.
The visit comes as both sides seek to manage the dispute while maintaining broader cooperation.