Singapore and Indonesia reaffirm commitment to honor gas contracts amid supply cuts

Singapore Foreign Minister Vivian Balakrishnan said communication between Prime Minister Lawrence Wong and Indonesian President Prabowo Subianto has established a political commitment for both sides to act on agreed measures. He briefed reporters in Jakarta after meeting Prabowo, noting that the discussions were “honest and sincere” and have already led to some concrete steps, though details were not disclosed.

Balakrishnan emphasized that both countries share a “common commitment to the sanctity of contract” on gas supplies, citing statements from Singapore’s leaders and Indonesian ministers. Indonesia began cutting natural gas exports to Singapore on 24 Oct by about 31 million standard cubic feet per day, roughly 8 % of its piped gas exports, to prioritize domestic electricity needs in Batam, Bintan and Sumatra. Indonesian Energy Minister Bahlil Lahadalia said the reduction does not breach existing agreements.

Singapore’s Energy Market Authority said the cut represents less than 2 % of Singapore’s daily gas demand and that supplies remain sufficient, with the importer ready to increase liquefied natural gas imports if required. Balakrishnan added that Singapore is managing the disruption from a position of strength, having diversified its energy sources and built LNG terminals.

The two ministers also discussed broader bilateral issues, including Indonesia’s review of low-carbon electricity exports to Singapore and the establishment of a joint task force to hold companies accountable for forest and land fires. They agreed to a ministerial and senior-official hotline to improve coordination.

Balakrishnan noted that Singapore and Indonesia will celebrate 60 years of diplomatic relations in 2027, when Singapore will chair ASEAN, and highlighted the importance of deepening regional integration and building resilience against supply disruptions.