Indonesia began cutting natural gas exports to Singapore by 31 billion British thermal units per day on October 24, 2026, as President Prabowo Subianto’s administration prioritizes domestic energy needs and industrial development amid growing regional tensions.
The reduction affects pipeline supplies from the Natuna and Sumatra regions, according to Indonesia’s upstream oil and gas regulator SKK Migas. SKK Migas chief Djoko Siswanto announced the cuts on October 23, noting that starting tomorrow, we will reduce gas exports to Singapore by 15 BBTUD from Natuna and 16 BBTUD from Sumatra
(The Straits Times). The Sumatra reductions originate specifically from the Jambi Merang gas field (The Straits Times). Officials stated that only Singapore is affected because the export pipelines connect directly to the island (Mothership).
Based on US Energy Information Administration data, this decline matches roughly 8 percent of the pipeline gas shipments Indonesia sent to Singapore during 2024. Gas diverted from Natuna will be reduced by 15 BBTUD, while supplies previously exported from Sumatra will be cut by 16 BBTUD.
Bahlil Lahadalia Warns of Survival Mode and Export Reviews
The export cuts follow sharp warnings from Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia regarding national resource sovereignty. Speaking aboard a gas production vessel off East Kalimantan during the inauguration of facilities at the Jangkrik and Maha gas fields, Bahlil addressed Indonesia’s broader export policies (Eco-Business).
I will carry out an evaluation, and I will not hesitate to consider halting exports to countries that disrespect Indonesia.
Bahlil, Minister of Energy and Mineral Resources
Bahlil did not name specific nations during his remarks (Eco-Business), which came after weeks of diplomatic friction involving transboundary haze concerns and regional environmental pressures (Eco-Business). Malaysia’s Natural Resources and Environmental Sustainability Minister Arthur Joseph Kurup stated that his country reserved the right to demand effective action from Indonesia regarding haze issues and would raise the matter at an ASEAN meeting in Manila. Earlier in the week at the State Palace in Jakarta, Bahlil stated that Indonesia must prioritize domestic needs as it enters what he described as “survival mode.” President Prabowo Subianto similarly instructed ministers to protect national wealth, likening the country’s resources to its lifeblood (Eco-Business).
Indonesia Prioritizes Domestic Petrochemical Sector over Exports
Behind the immediate pipeline cuts lies a long-term strategy to restructure Indonesia’s energy economy. Bahlil noted that Indonesia currently exports about 30 percent of its natural gas production and allocates the remaining 70 percent to domestic needs (ANTARA News). The government intends to reassess these ratios to ensure sufficient feedstock for domestic industrial processing, particularly for expanding the petrochemical sector in regions such as East Kalimantan (ANTARA News). Official government data covering 2025 shows that Indonesia supplied natural gas to several destinations, including Japan with 3,798 tonnes, China with 3,789 tonnes, Singapore with 3,547 tonnes, South Korea with 2,269 tonnes, Thailand with 291,000 tonnes, and the Philippines with 138,000 tonnes.
Jakarta has gradually tapered export commitments over several years. An arrangement was reached by Jakarta in 2022 to prolong gas shipments to Singapore through 2028, though subject to reduced quantities compared to the preceding agreement (The Straits Times). Energy firms have also adjusted operations, such as a May 2025 gas swap agreement involving MedcoEnergi and Singapore buyers Sembcorp Gas and Gas Supply to redirect more Sumatra gas toward domestic use (The Straits Times).
Singapore GasCo Response and Energy Security Measures
In Singapore, which relies on natural gas to generate 95 percent of its electricity (The Business Times), centralized gas buyer Singapore GasCo addressed the developments by affirming bilateral ties. Alan Heng, CEO of Singapore GasCo, stated that the organization expects Indonesia to remain an important regional partner for energy security.
Singapore imported 3.22 million tonnes of natural gas from Indonesia in 2025 (The Business Times). According to the Energy Market Authority, pipeline gas from Malaysia and Indonesia accounts for 40 percent of the republic’s supply, while liquefied natural gas shipped from around the world makes up the remaining 60 percent (Malay Mail). Analysts note that supply curbs could raise power prices over time, though the exact impact depends on the duration and alternative supply costs. Lee Rou Urn, Asia pricing analyst for liquefied natural gas at Argus Media, noted that Singapore is likely sufficiently diversified to manage short-term disruptions using its available storage capacity. Existing import contracts between the two nations are scheduled to expire at the end of 2028 (The Straits Times).