Indonesia has slashed natural gas supplies to Singapore and is questioning their energy security and contractual responsibilities to the Southeast Asian neighbour.
The Indonesia Gas Cuts that started on October 24, 2026 shift gas supplies towards domestic electricity generation. The reductions are said to be in accordance with agreed cuts, but Jakarta is pushing back for commercial commitments to be met.
The disagreement reflects the conflict between national energy policy and foreign energy security.
Indonesia Gas Cuts: Why Jakarta Reduced Exports
Indonesia cut its pipeline exports by 31 million standard cubic feet a day, or about 8% of its exports to Singapore. Energy Minister Bahlil Lahadalia pointed out that the growth of domestic demand, such as electricity consumption in Batam, Bintan and Sumatra, and the maintenance needs.
Indonesia Says Existing Gas Contracts Remain Intact
However, contractual minimum deliveries are still at around 91–92% of agreed deliveries, Bahlil told ANTARA News. He said that an 8% cut is therefore not considered excessive, but did not disclose the terms of the entire contract.
Singapore Responds to Gas Supply Reductions
The cut is less than 2% of the power sector’s gas demand each day, according to Singapore’s Ministry of Trade and Industry. Minister Tan See Leng assured that adequate replacement supplies were available, which included LNG, but added that importers might consider contractual remedies.
Energy Security Raises Long-Term Questions
The stand-off reflects conflicting priorities – Indonesia’s reliable power generation domestically, Singapore’s is power supplies from reliable sources. As supply deals expire in 2028, they will be put to a greater test, Reuters reporting.
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