Jakarta, ThedailyID — Indonesia’s Energy and Mineral Resources Minister Bahlil Lahadalia said the country’s decision to reduce natural gas exports to Singapore does not violate existing contracts. He maintained that the reduction remains within the minimum contractual limits.
Indonesia exports a total of 409.55 billion British thermal units per day (BBTUD) of pipeline gas to Singapore from two main areas, the Natuna Sea and Sumatra. The government has reduced supplies by 31 BBTUD, or approximately 8% of the total volume.
“The 31 BBTUD we have cut remains within the minimum contractual limits. Our minimum contract threshold is around 91 to 92, and we have only cut around 8%. If we cut 10%, that would be a contract violation,” Bahlil said at a press conference in Central Jakarta on October 26, 2026.
Bahlil also defended Indonesia’s commitment to international agreements, stressing that the reduction complies with the agreed terms. He said the government must balance its contractual obligations with the need to secure domestic energy supplies.
The policy reflects growing concerns over global geopolitical uncertainty and the need to ensure sufficient gas supplies for domestic industries. Bahlil also cited maintenance shutdowns at gas production facilities and the government’s efforts to strengthen national energy security amid the risk of a global energy crisis.
“There has been a maintenance shutdown. Second, there is domestic demand. Industrial raw material needs must always be met, and gas is the source,” he said.
Indonesia began redirecting gas supplies from Singapore to domestic users on October 24, 2026. Djoko Siswanto, head of the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), said the government was reallocating supplies to meet domestic needs, particularly electricity generation.
The adjustment involves two routes. Indonesia is redirecting 15 million standard cubic feet of gas per day from Natuna to PLN Batam through the WNTS-Pulau Pemping-Batam pipeline. It is also reducing supplies from Sumatra to Singapore by 16 million standard cubic feet per day through the Transgasindo (TGI) pipeline.
The second reduction aims to secure gas for electricity needs in Batam, Bintan, and Sumatra. Together, the two measures account for a reduction of 31 million standard cubic feet per day in gas supplies previously exported to Singapore.
Djoko said the policy follows Indonesia’s Oil and Gas Law No. 22 of 2001, particularly Article 8(1), which prioritizes domestic demand in the use of natural gas. SKK Migas will continue monitoring supply conditions daily.
Bahlil had previously warned on October 21 that Indonesia could reduce gas exports to neighboring countries to protect national energy security amid global uncertainty. He linked the policy to President Prabowo Subianto’s directive to prioritize domestic needs during the current geopolitical climate.
