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Indonesia mulls halting gas exports to neighbouring countries citing 'survival'

Option being considered in response to Indonesia President Prabowo Subianto's directive amid global geopolitical developments: Energy minister
Indonesia mulls halting gas exports to neighbouring countries citing 'survival'
Indonesia's Energy and Mineral Resources Minister Bahlil Lahadalia said Indonesia is considering to terminate gas exports, including to neighbouring countries, as it enters "survival mode".
PHOTO: Reuters

Indonesia is considering the possibility of terminating gas export contracts with neighbouring countries, said the country's Energy and Mineral Resources Minister Bahlil Lahadalia on Wednesday (Oct 21). 

Bahlil, who has also been the leader of Golkar party since August 2024, made these comments to the media after attending a plenary meeting at the State Palace in Jakarta, marking the second anniversary of President Prabowo Subianto's administration.

Indonesian media outlets reported the minister as saying that the option is being considered in response to Prabowo's directive that require Indonesia to adopt a survival-oriented approach amid geopolitical tensions and global energy challenges.

"As state officials, we must translate what President Prabowo has said into concrete programmes to ensure the country's survival," the Jakarta Globe quoted Bahlil as saying.

He added that the government could reassess its energy exports, particularly natural gas, to ensure domestic demand is first met, before additional supplies are allocated for overseas exports.

"I am also considering not renewing gas export contracts with neighbouring countries," the minister said.

On Thursday, Bahlil doubled-down on his comments during the inauguration of a gas facility.

News agency Antara reported the minister as saying that while he is ready to collaborate on energy exports with other countries that have mutually beneficial and respectful relationships, he is similarly prepared to evaluate energy exports with other countries deemed "uncooperative and disrespectful".

"So, if other countries want a different view of us, be careful. I might also consider not renewing gas exports to neighboring countries," Bahlil said.

The minister did not appear to have named any countries.

Singapore is one of Indonesia's LNG export destinations

Indonesia is known to have export contracts with several major Asian economies, including China, Japan, South Korea, Singapore, Malaysia and Thailand.

Indonesia is one of the main sources for natural gas imports for Singapore, with current contracts between the two countries expiring in end-2028. 

But Indonesia recalibrating to focus on its domestic needs is not new.

In September 2023, Singapore's Deputy Prime Minister and then-Minister for Trade and Industry Gan Kim Yong stated in a parliamentary reply that no country accounted for more than 30 per cent of the city state's gas imports.

He was responding to a question from MP Saktiandi Supaat (Bishan-Toa Payoh GRC), who had asked about potential energy implications from Indonesia's recalibration of the liquified natural gas (LNG) trade, including its shift towards imports from the US and prioritisation for domestic use.

In his reply, DPM Gan emphasised that it is critical for Singapore to ensure the sufficiency and diversity of its natural gas supplies.

"To this end, we have built a LNG terminal, which started operations in 2013. The LNG terminal allows us to import LNG from various suppliers around the world. In fact, LNG now accounts for close to 60 per cent of our total natural gas supplies."

DPM Gan added that Singapore is also building a second LNG terminal to increase its import capacity.

According to the Energy Market Authority, 40 per cent of Singapore's natural gas supply comes from Malaysia and Indonesia pipelines, while the rest was supplied by sea from markets around the world. 

He also pointed out that Singapore will continue to diversify its energy mix, and that the city state is on track to install at least 2 Gigawatt-peak (GWp) of solar capacity by 2030.

That target was achieved ahead of schedule, and has since been raised to 3GWp.

Meanwhile, Singapore GasCo was set up in 2025 as a central gas aggregator, reshaping national gas procurement.

It is intended to ensure that the country is "adequately contracted" for natural gas at all times.

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