Indonesia accuses Singapore of re-exporting LNG amid diplomatic talks

Indonesia's coordinating minister for downstreaming and energy transition, Bahlil Lahadalia, told reporters on Thursday that he believes a portion of the 148 LNG cargoes shipped to Singapore are being traded and re-exported rather than used domestically in Singapore. He made the remarks after meeting President Prabowo Subianto at the presidential palace in Jakarta. Lahadalia did not present evidence or specify the shipment period, and he noted that the allegation concerns sea-borne LNG, which is separate from pipeline gas supplied from Indonesia's Natuna and Sumatra fields.

Indonesia has reduced pipeline gas exports to Singapore since Oct. 24, citing domestic energy needs. The upstream regulator SKK Migas announced cuts of 31 million standard cubic feet per day, redirecting gas to electricity generation in Batam, Bintan and Sumatra. Singapore's Energy Market Authority said the actual reduction, based on importer data, amounted to 17 billion British thermal units per day over 18 days, representing less than 2 percent of Singapore's daily gas demand. Lahadalia affirmed that Indonesia has not breached any supply agreements and that reduced deliveries remain above contractual minimums. He added that Indonesia has no immediate plans to cut LNG exports to Singapore, but will continue to prioritise domestic demand.

The comments followed Singapore Prime Minister Lawrence Wong's statement on Oct. 25 that parties should honour commercial commitments. Lahadalia responded on Oct. 26 that Indonesia had fulfilled its obligations and should not be lectured on contract respect.

Other senior Indonesian officials sought to de-escalate the issue. Investment Minister Rosan Roeslani said Singapore's investment commitments to Indonesia remain intact and welcomed Singapore's move to summon executives from ten companies over possible haze links as a constructive step. He also noted a recent meeting with Singapore Foreign Minister Vivian Balakrishnan in Jakarta, reaffirming both countries' intent to strengthen investment cooperation.

Indonesian Chamber of Commerce and Industry deputy chairman Shinta Kamdani expressed confidence that a recent meeting between Prabowo and Balakrishnan would lead to a solution, emphasizing Singapore's continued role as a major source of investment. National Economic Council chairman Luhut Binsar Pandjaitan warned that the gas reductions should not lead to conflict, stating there is no reason for a dispute.

Communications and Digital Affairs Minister Meutya Hafid called for restraint after a former Singapore-nominated MP suggested Singapore could cut Indonesia's internet connectivity. Hafid highlighted that much of Singapore's submarine cable network passes through Indonesian waters and urged joint protection of digital infrastructure.

The diplomatic exchanges occur alongside ongoing disagreements over transboundary haze from Indonesian forest fires. During Balakrishnan's visit, the two countries agreed to create a joint task force for information sharing and enforcement cooperation on haze issues, and reaffirmed their commitment to close bilateral relations despite specific disagreements.