Indonesia cuts gas exports to Singapore, citing domestic electricity needs

Jakarta redirects 31 million cubic feet per day; Singapore says impact is under 2 percent of daily gas demand

By LineZotpaper AI staff

Published26 October 2026

Read Time3 min

Indonesia began reducing natural gas exports to Singapore on Saturday, diverting supplies to meet domestic electricity needs after a series of power outages, the country's upstream oil and gas regulator SKK Migas said. The move carries diplomatic weight, coming as the neighbours trade friction over wildfire haze and a possible downgrade of Indonesia's stock market.

SKK Migas chairman Djoko Siswanto said the diversion involves 31 million standard cubic feet of gas per day, made up of 15 million from Natuna and 16 million from Sumatra. That equals about 9 percent of Indonesia's total natural gas exports to Singapore, according to reports from Reuters and Channel News Asia cited by The Diplomat.

"In order to safeguard the reliability of domestic gas supplies for electricity generation, effective today, gas supplies previously destined for Singapore are being redirected for domestic use," Djoko said.

The cut follows a series of serious power outages in Indonesia, including a major blackout across at least six provinces in Sumatra in May, rolling outages in Java and Kalimantan in June and July, and a 16-hour outage on the island of Batam last week.

Singapore depends on imported gas for more than 90 percent of its electricity generation. Last year around 43 percent of its imported gas arrived by pipeline from Indonesia and Malaysia, with the rest as liquefied natural gas by sea.

Singapore's Energy Market Authority said the reduction would amount to about 17 billion British thermal units per day over 18 days, which it said was "less than 2 percent of our total daily gas demand." Energy Minister Tan See Leng said Singapore has sufficient gas supply and is working to diversify its sources.

"I would like to urge all of our fellow Singaporeans: keep calm and carry on," he said. "We have dealt seamlessly with such reductions in the past without any incident."

The reduction was foreshadowed on October 21 by Indonesian Energy Minister Bahlil Lahadalia, who said President Prabowo Subianto had ordered Indonesia to adopt a survival-oriented approach amid geopolitical tensions and global energy challenges. The next day he said the government might cut off supplies to nations that did not respect Indonesia.

"Don't come asking for help only when you're in need, but when other issues that can actually be discussed arrive, act like you have no sense of propriety," Bahlil said. He made no mention of Singapore.

The comments come amid growing friction between the two neighbours over toxic haze from Indonesian wildfires. Singapore's Prime Minister Lawrence Wong said on October 15 that the government was looking into Indonesian companies that could be responsible for the fires, and might act under the Transboundary Haze Pollution Act. Senior Minister K Shanmugam said on October 19 that Singapore would "sustain pressure" on those companies.

Tensions also surround global index provider MSCI's threat, announced October 16, to downgrade Indonesia to "Standalone Market" status over a lack of transparency in its stock market, which sent the market down 15 percent over two days. Former Indonesian Trade Minister Muhammad Lutfi claimed Singaporean state investment firms GIC and Temasek pressured MSCI to downgrade Indonesia; both firms denied the claim. Prabowo responded that MSCI "intended to intimidate us."

The gas cut is consistent with Indonesia's long-standing policy of prioritising natural resources for domestic use, including a one-month coal export ban in January 2022 and export bans on unprocessed nickel, bauxite and raw copper.

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Analysis

Why This Matters

Singapore generates more than 90 percent of its electricity from imported gas, so any disruption to pipeline supply tests the reliability of its energy system, even when the immediate impact is small.
Indonesia's move reflects a broader shift toward resource nationalism under President Prabowo Subianto, which could affect business confidence and regional energy partnerships.
The cut deepens existing friction between the two neighbours over wildfire haze and the threat of an MSCI downgrade of Indonesia's stock market.

Background

Indonesia has for years required producers of key resources to reserve a portion of output for the domestic market at below-market prices before exporting the remainder. That policy has previously led to a one-month coal export ban and restrictions on exports of unprocessed minerals. Singapore, for its part, has long relied on gas piped from Malaysia and Indonesia, supplemented by seaborne liquefied natural gas, and says it has been seeking to diversify its supply sources against future shocks.

Key Perspectives

SKK Migas (Djoko Siswanto): says the gas is being redirected to safeguard the reliability of domestic electricity supplies, effective immediately. Indonesia's Energy Minister Bahlil Lahadalia: says Indonesia will not hesitate to prioritise natural resources for its own needs and may cut off supplies to nations that do not respect Indonesia. Singapore's Energy Market Authority: says the reduction equals less than 2 percent of Singapore's total daily gas demand. Singapore's Minister Tan See Leng: says Singapore has sufficient gas supply, is continuously diversifying its sources, and urged citizens to "keep calm and carry on." Former Indonesian Trade Minister Muhammad Lutfi: claimed Singaporean state firms GIC and Temasek pressured MSCI to downgrade Indonesia; both firms denied the claim. President Prabowo Subianto: says MSCI "intended to intimidate us."

What to Watch

Whether Indonesia announces further supply cuts, given Bahlil's warning that supplies could be cut to nations that do not respect Indonesia.
How Singapore's daily gas market responds over the 18-day period affected by the reduction.
Whether Singapore follows through on its threat to use the Transboundary Haze Pollution Act against Indonesian companies over the fires.
The final decision from MSCI on Indonesia's market status and its impact on Indonesian markets and relations with Singapore.

Sources

Indonesia Reduces Gas Supply to Singapore, Citing Domestic Energy Needs · The Diplomat

Checked

12 claims in this story checked against 1 source: 9 supported.

Show each claim

SupportedIndonesia began reducing natural gas exports to Singapore, citing domestic electricity needs.The Diplomat: “Indonesia on Saturday began reducing natural gas exports to Singapore in order to divert more supplies to domestic electricity needs, the country’s upstream oil and gas regulator SKK Migas said.”
Partly supportedThe summary says Jakarta is redirecting 31 million cubic feet of gas per day.The Diplomat: “SKK Migas chairman Djoko Siswanto said that the diversion involves 31 million standard cubic feet of gas per day”
SupportedSingapore’s Energy Market Authority said the reduction was less than 2 percent of daily gas demand.The Diplomat: “This, it said, equated to “less than 2 percent of our total daily gas demand.””
Not in the sourcesThe gas cut carries diplomatic weight.The Diplomat: “The minister’s remarks were cryptic, and he made no mention of Singapore, but they come at a time of growing friction between the two neighbors”
SupportedThe 31 million standard cubic feet per day comprises 15 million from Natuna and 16 million from Sumatra.The Diplomat: “This comprises 15 million standard cubic feet of gas per day from Natuna and 16 million from Sumatra”
SupportedThe diversion is around 9 percent of Indonesia’s total natural gas exports to Singapore.The Diplomat: “which makes up around 9 percent of Indonesia’s total exports of natural gas to Singapore.”
SupportedThe diversion quote is accurately attributed to SKK Migas chairman Djoko Siswanto.The Diplomat: ““In order to safeguard the reliability of domestic gas supplies for electricity generation, effective today, gas supplies previously destined for Singapore are being redirected ⁠for domestic use,” Djoko said, as per Reuters.”
SupportedThe cut follows a series of power outages, including a 16-hour outage on Batam last week.The Diplomat: “The latest cut comes after a series of serious power outages in Indonesia, including a major blackout across at least six provinces in Sumatra in May and rolling ‌outages ⁠in Java and Kalimantan in June and July. More recently, the island of Batam in Riau Islands Province was last week hit with a 16-hour power outage.”
SupportedSingapore’s Energy Market Authority said the reduction would be around 17 billion British thermal units per day over 18 days.The Diplomat: “Singapore’s Energy Market Authority said on Saturday that the reduction would amount to around 17 billion British thermal units per day over a period of 18 days.”
SupportedTan See Leng urged Singaporeans to “keep calm and carry on” and said past reductions had been handled without incident.The Diplomat: ““I would like to urge all of our fellow Singaporeans: keep calm and carry on. We have dealt seamlessly with such reductions in the past without any incident”
SupportedBahlil Lahadalia said, “Don't come asking for help only when you're in need, but when other issues that can actually be discussed arrive, act like you have no sense of propriety.”The Diplomat: ““Don’t come asking for help only when you’re in need, but when other issues that can actually be discussed arrive, act like you have no sense of propriety, like someone who doesn’t know how to conduct yourself properly,” Bahlil said”
Partly supportedThe story describes MSCI’s action as a possible downgrade of Indonesia’s stock market.The Diplomat: “the recent threat of global index provider MSCI to downgrade Indonesia to “Standalone Market” status due to a lack of transparency in its stock market.”