Indonesian minister alleges Singapore re-exports some LNG shipments

Indonesia's coordinating minister for downstreaming and energy transition, Bahlil Lahadalia, said on Oct. 29 that he believes some of the 148 LNG cargoes shipped from Indonesia to Singapore are being traded and re-exported rather than used domestically in Singapore.

"I believe that not all of the 148 cargoes we send are used for Singapore’s own needs, but some are traded and subsequently exported to other countries," Bahlil told reporters after meeting President Prabowo Subianto at the Presidential Palace in Jakarta.

Bahlil, who also serves as minister of energy and mineral resources and chairs the Golkar Party, offered no evidence or specific time frame for the allegation. He noted that the claim concerns LNG transported by sea, which is separate from pipeline gas supplies, and emphasized that Indonesia has not breached existing supply contracts, keeping deliveries above the minimum limits.

Indonesia has recently reduced pipeline gas exports to Singapore, cutting 31 million standard cubic feet per day to meet domestic electricity demand, a reduction that Singapore's Energy Market Authority said represents less than 2 percent of its daily gas demand.

Singapore's prime minister, Lawrence Wong, had earlier said the country expects parties to honour commercial commitments. Bahlil responded that Indonesia had fulfilled its obligations and should not be lectured on contract respect.

Other Indonesian officials sought to de-escalate the dispute. Investment minister Rosan Roeslani said Singapore's investment commitments remain intact and welcomed Singapore's summons of executives from ten companies over possible haze links as a constructive step. He also reaffirmed cooperation after meeting Singapore foreign minister Vivian Balakrishnan in Jakarta.

Deputy chairman of the Indonesian Chamber of Commerce and Industry, Shinta Kamdani, expressed confidence that a recent meeting between President Prabowo and Balakrishnan would lead to a solution, noting that Singapore continues to be a major source of investment for Indonesia.

National Economic Council chairman Luhut Binsar Pandjaitan warned that the gas reductions should not lead to conflict, stating, "Why would we fight with Singapore? There’s no reason to."

Communications and Digital Affairs Minister Meutya Hafid called for restraint after a former Singapore-nominated MP suggested cutting Indonesia’s internet connectivity, stressing the need for joint protection of digital infrastructure that passes through Indonesian waters.

The two countries also agreed during Balakrishnan's visit to set up a joint task force aimed at improving information sharing and enforcement cooperation to address transboundary haze from forest fires.