Singapore and Indonesia have reaffirmed their commitment to uphold gas supply agreements amid ongoing concerns over Indonesia’s recent reduction in natural gas exports to Singapore. The cut, amounting to 31 billion British thermal units per day (BBTUD), has been attributed to Indonesia’s need to prioritize its domestic energy requirements. Despite these reductions, Indonesia maintains that the action is within the permissible limits of existing agreements.
During his visit to Jakarta, Singapore’s Foreign Minister Vivian Balakrishnan emphasized the importance of respecting contractual obligations, highlighting their critical role in maintaining the credibility and competitiveness of both countries’ economies. He encouraged observers to consider the actions of both governments along with their public statements.
Singapore Prime Minister Lawrence Wong has also called on suppliers to honor their commitments, while Singapore has indicated the possibility of seeking remedies should Indonesia be found to have breached commercial agreements. Meanwhile, Indonesia’s Energy Minister Bahlil Lahadalia defended the reduction, stating that the agreement allows for supply cuts of up to 92 BBTUD, and dismissed Singapore’s criticism regarding the handling of contractual obligations.
High-level communication between the two nations has taken place, including discussions involving Indonesian President Prabowo Subianto. However, specific details of these discussions have not been disclosed. Before the reduction, Indonesia supplied approximately 409.55 BBTUD of natural gas to Singapore through pipeline networks, in addition to liquefied natural gas shipments.