Indonesia minister accuses Singapore of reselling LNG amid calls to ease bilateral tensions

JAKARTA - A senior Indonesian minister has accused Singapore of reselling some of the liquefied natural gas (LNG) it imports from Indonesia to other countries, even as other officials and business leaders called for calm amid tensions over energy supplies and transboundary haze.Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia said on Oct 29 that he believed some of the 148 LNG cargoes that Indonesia had shipped to Singapore were being traded and re-exported rather than used for domestic consumption.“I believe that not all of the 148 cargoes we send are used for Singapore’s own needs, but some are traded and subsequently exported to other countries,” Bahlil told reporters after meeting President Prabowo Subianto at the Presidential Palace in Jakarta.Bahlil, who is also Minister of Energy and Mineral Resources and chairman of the Golkar Party, did not provide evidence to support the allegation or specify the period over which the cargoes were shipped.His remarks concerned LNG transported by sea, which is separate from natural gas supplied through pipelines from Indonesia’s Natuna and Sumatra gas fields. LNG trading and re-exporting are not inherently improper, although such transactions are subject to the terms of supply agreements.The comments come after Indonesia began reducing pipeline gas exports to Singapore on Oct 24, citing domestic energy needs.Indonesia’s upstream oil and gas regulator SKK Migas announced reductions totalling 31 million standard cubic feet per day, with supplies diverted to electricity generation in Batam, Bintan and Sumatra.Singapore’s Energy Market Authority subsequently said the actual reduction, based on information from importers, amounted to 17 billion British thermal units per day over 18 days, representing less than 2 per cent of Singapore’s daily gas demand.Bahlil said on Oct 29 that Indonesia had not breached its agreements, saying the reduced deliveries remained above the minimum supply limits stipulated in existing contracts.He added that Indonesia had no immediate plans to reduce LNG exports to Singapore, but would continue prioritising domestic demand.The minister’s remarks followed an earlier exchange over contractual obligations, after Prime Minister Lawrence Wong said on Oct 25 that Singapore expected parties to honour their commercial commitments.Bahlil responded on Oct 26 by insisting that Indonesia had fulfilled its obligations and should not be lectured about respecting contracts.Playing down tensionsHis latest comments came as other senior Indonesian figures sought to play down the tensions. On Oct 29, Investment Minister Rosan Roeslani said Singapore’s investment commitments to Indonesia remained intact despite differences over haze and gas supplies.Rosan also welcomed Singapore’s decision to summon executives from 10 companies over possible links to the haze, describing the move as a positive step towards addressing forest fires.He said he had met Singapore Foreign Minister Vivian Balakrishnan during the latter’s visit to Jakarta and reaffirmed both countries’ commitment to strengthening investment cooperation.Singapore has been Indonesia’s largest source of foreign direct investment since 2014, with investments reaching US$17.4 billion (S$22.3 billion) in 2025.Indonesian Chamber of Commerce and Industry deputy chairman Shinta Kamdani also expressed hope on Oct 29 that Prabowo’s meeting with Balakrishnan a day earlier would help ease tensions.“I am confident that the meeting will lead to a solution,” she said.Shinta, who also chairs the Indonesian Employers Association, said Singapore remained a major source of investment for Indonesia and that she had not observed any decline in Singaporean investment interest in the real economy, although tensions could affect financial market sentiment.Earlier, on Oct 27, National Economic Council chairman Luhut Binsar Pandjaitan said the gas reductions should not lead to conflict between the neighbours.“Why would we fight with Singapore? There’s no reason to,” he told reporters, adding that he had spoken to Bahlil about the issue.Separately, Communications and Digital Affairs Minister Meutya Hafid called for restraint following remarks by former Singapore nominated MP Calvin Cheng suggesting that Singapore could cut Indonesia’s internet connectivity.Meutya pointed out that much of Singapore’s submarine cable connectivity passes through Indonesian waters, but stressed that digital infrastructure should be protected jointly for the benefit of both countries and global connectivity.The exchanges have unfolded alongside renewed disagreements over transboundary haze from Indonesian forest and land fires.During Balakrishnan’s Oct 27 to 29 visit, Singapore and Indonesia agreed to establish a joint task force to strengthen information-sharing and enforcement cooperation against the haze.Balakrishnan also met Prabowo on Oct 28, with both sides reaffirming their commitment to maintaining close bilateral relations despite differences over specific issues.