Singapore and Indonesia have reiterated their commitment to upholding gas supply agreements amid ongoing concerns over reduced exports from Indonesia to Singapore. The situation arose after Indonesia cut its pipeline gas exports by 31 billion British thermal units per day (BBTUD) to prioritize domestic energy needs, a move Jakarta claims is within the limits of existing agreements.
During a visit to Jakarta, Singapore’s Foreign Minister Vivian Balakrishnan emphasized the importance of respecting contractual obligations, highlighting their significance for the credibility and competitiveness of both economies. Balakrishnan also encouraged observers to evaluate the actions of both governments in conjunction with their public statements.
Singapore’s Prime Minister Lawrence Wong had previously urged suppliers to honor their commitments and indicated that Singapore might seek remedies if Indonesia is found to have breached commercial agreements. In response, Indonesia’s Energy Minister Bahlil Lahadalia defended the reduction, asserting that the agreement permits supply cuts of up to 92 BBTUD and dismissed Singapore’s criticism regarding the handling of contractual obligations.
Balakrishnan confirmed that high-level communications had occurred between Singaporean and Indonesian leaders, including discussions with President Prabowo Subianto, though he did not divulge specifics of these talks.
Prior to the reduction, Indonesia supplied approximately 409.55 BBTUD of natural gas to Singapore via pipeline networks, alongside liquefied natural gas shipments. The ongoing dialogue and reaffirmation of commitments reflect both nations’ intent to maintain stable economic relations despite the current tensions over gas supply.