Indonesia's Energy Minister Pushes Direct Export Routes as Singapore Row Intensifies
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Energy and Mineral Resources Minister Bahlil Lahadalia urged Indonesia to send natural resources directly to buyers, saying transit countries should not be allowed to pocket gains from Indonesian commodities, as tensions with Singapore grow.
Jakarta – Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia should stop routing its natural-resource exports through third-party nations and ship them directly to end-users. Speaking at the Minerba Convex 2026 forum, he said intermediary countries take taxes and trade-balance gains for themselves while Indonesia loses economic value that should rightfully remain at home.
“Our natural resources must no longer be routed through other countries. If we are sending goods to China, they should go directly from Jakarta to China, not stop over in that ‘particular’ country,” Bahlil said.
He added that some transit nations allegedly stamp goods and claim them as their own exports, prompting him to instruct his director generals to end such practices.
“Why should we use another country? They collect the taxes and benefit from the trade balance. Stop sending goods there. Indonesia is a sovereign country and should not be dictated to,” he said.
The remarks come as Indonesia and Singapore experience heightened diplomatic strain over natural-gas supplies, cross-border haze, and other issues. In recent weeks Indonesia reduced natural-gas shipments to Singapore, questioned the valuation of Indonesian commodities passing through Singapore, and advised pilgrims to avoid transiting via Singapore’s Changi Airport.
Singapore’s Ministry of Energy and Trade and Industry responded that LNG traded by Singapore-based firms typically moves directly from source to destination without physically passing through Singapore, emphasizing the city-state’s role as a trading hub rather than a transit point.
“While Singapore-based traders make the commercial decisions relating to the cargo, the actual LNG cargo usually moves from source to destination country directly and does not physically pass through Singapore,” the ministry said.
Foreign Minister Vivian Balakrishnan visited Jakarta for talks with Indonesian officials, urging “cool heads” and constructive dialogue to address the disputes.