Across a narrow strait where two economies have long been bound by pipelines, shipping lanes, and shared investment, Indonesia's energy minister has now voiced suspicion that Singapore is quietly passing on some of the gas it buys. The claim arrives after a week of friction over pipeline supplies cut for domestic needs, and it sits beside an old quarrel over smoke drifting from Indonesian fires. Both governments are speaking of commitments and cooperation even as their rhetoric sharpens, a familiar pattern in neighbors whose interests are too entangled to abandon. Whether the words cool into s
Indonesia Minister Accuses Singapore of Reselling LNG as Officials Urge Calm Over Energy and Haze Rows
"Why would we fight with Singapore? There's no reason to."
Mark
Why did one comment about LNG cargoes draw so much attention?
Mimi
It came after pipeline cuts began on Oct 24 and a public back-and-forth between Bahlil and Prime Minister Wong over contracts. It landed in an already tense week.
Luke
But the claim itself is thin. He gave no evidence and no time period for the 148 cargoes.
Mark
Is reselling LNG even wrong?
Mimi
Not inherently. Trading and re-exporting are common, though supply agreements can set terms. So the question is what the contracts say.
Luke
And we haven't seen those terms. Whether anything was breached is unknown from this reporting.
Mark
How big were the pipeline cuts?
Mimi
SKK Migas announced 31 million standard cubic feet per day. Singapore's regulator put it at 17 billion British thermal units per day over 18 days, under 2 per cent of daily demand.
Luke
Those are two agencies' figures, measured differently, and the Singapore number comes from importers' information. I wouldn't treat them as reconciled.
Mark
What are other Indonesian officials doing?
Mimi
Calming things. Rosan says investment is intact, Luhut asked why they'd fight, and Meutya urged restraint over the cable remarks.
Luke
Worth noting that Shinta saw no drop in investment interest but allowed that market sentiment could suffer. That's a caution, not a guarantee.
Il Polso
- An Indonesian minister accuses Singapore of reselling LNG cargoes, yet offers no evidence and no timeframe for the claim.
- Pipeline gas cuts announced for domestic needs ripple through Singapore's supply, though officials say the reduction was under 2 percent of daily demand.
- Prime Minister Wong and Minister Bahlil trade sharp words over contracts, each insisting the other side must respect its obligations.
- A newly agreed joint haze task force and planned talks offer a path to calm, while Singapore's large investment stake keeps both sides anxious to avoid a rupture.
Across a narrow strait where two economies have long been bound by pipelines, shipping lanes, and shared investment, Indonesia's energy minister has now voiced suspicion that Singapore is quietly passing on some of the gas it buys. The claim arrives after a week of friction over pipeline supplies cut for domestic needs, and it sits beside an old quarrel over smoke drifting from Indonesian fires. Both governments are speaking of commitments and cooperation even as their rhetoric sharpens, a familiar pattern in neighbors whose interests are too entangled to abandon. Whether the words cool into steady agreement or harden into lasting distrust will depend on what follows the alarm.
On Thursday, Indonesia's energy minister Bahlil Lahadalia stepped out of a meeting with President Prabowo in Jakarta and told reporters he suspected Singapore was not using all the liquefied natural gas Indonesia ships there. Of 148 cargoes, he said, some were likely being traded onward to other countries. He gave no evidence and no time period. Trading LNG is not improper in itself, though it depends on the terms of each supply agreement.
The remark came after a tense week. Indonesia had begun trimming pipeline gas to Singapore on October 24 to meet domestic power needs in Batam, Bintan and Sumatra. Singapore's regulator reported the cut was small, under 2 percent of its daily gas demand over 18 days. Bahlil insisted Indonesia had kept within its contractual minimums, and he rejected any suggestion that it needed lessons on honoring agreements.
Other voices in Jakarta worked to soften the mood. Investment Minister Rosan Roeslani said Singapore's commitments remained intact and welcomed Singapore's summoning of executives over possible links to the haze. Luhut Binsar Pandjaitan asked plainly why the two countries would fight at all. Singapore has been Indonesia's largest investor since 2014, and business leaders say the investment relationship remains strong even as markets feel uneasy.
Across these disputes, the two countries agreed during Foreign Minister Balakrishnan's visit to form a joint task force on haze. Whether that effort and further talks steady the relationship, and whether Bahlil's claim is ever backed by evidence, remains to be seen.
On Thursday, Oct 29, Indonesian minister Bahlil Lahadalia stepped out of a meeting with President Prabowo Subianto at the Presidential Palace in Jakarta and told reporters he believed Singapore was not keeping all the liquefied natural gas Indonesia sends it. Of the 148 LNG cargoes Indonesia had shipped, he said, he did not think all were used for Singapore's own needs; some, he said, were traded and exported on to other countries.
Bahlil holds several posts: he is Coordinating Minister for Downstreaming and Energy Transition, Minister of Energy and Mineral Resources, and chairman of the Golkar Party. He offered no evidence for the allegation and did not say over what period the 148 cargoes were shipped. His remarks concerned LNG carried by sea, which is separate from the pipeline gas that flows from Indonesia's Natuna and Sumatra fields. Trading and re-exporting LNG is not inherently improper, though such deals are subject to the terms of the supply agreements.
The comments follow a week of friction over pipeline gas. On Oct 24, Indonesia began cutting pipeline exports to Singapore, citing domestic energy needs. Upstream regulator SKK Migas announced reductions totalling 31 million standard cubic feet per day, with the gas diverted to electricity generation in Batam, Bintan and Sumatra. Singapore's Energy Market Authority later said that, based on information from importers, the actual reduction came to 17 billion British thermal units per day over 18 days, less than 2 per cent of Singapore's daily gas demand.
Bahlil said Indonesia had not breached its agreements, because the reduced deliveries remained above the minimum supply limits in existing contracts. He added that there were no immediate plans to cut LNG exports to Singapore, but that domestic demand would remain the priority. The remarks echoed an earlier exchange: Prime Minister Lawrence Wong said on Oct 25 that Singapore expected parties to honour their commercial commitments, and on Oct 26 Bahlil replied that Indonesia had met its obligations and should not be lectured about respecting contracts.
Other Indonesian figures sought to lower the temperature. On Oct 29, Investment Minister Rosan Roeslani said Singapore's investment commitments remained intact despite the disagreements over haze and gas. He welcomed Singapore's decision to summon executives from 10 companies over possible links to the haze, calling it a positive step toward tackling forest fires. He said he had met Singapore Foreign Minister Vivian Balakrishnan during his Jakarta visit, and that both sides reaffirmed their commitment to investment cooperation. Singapore has been Indonesia's largest source of foreign direct investment since 2014, with US$17.4 billion (S$22.3 billion) in 2025.
Shinta Kamdani, deputy chairman of the Indonesian Chamber of Commerce and Industry and chair of the Indonesian Employers Association, said she was confident Prabowo's meeting with Balakrishnan a day earlier would lead to a solution. She had seen no decline in Singaporean interest in investing in the real economy, though she said the tensions could affect financial market sentiment. On Oct 27, National Economic Council chairman Luhut Binsar Pandjaitan asked, "Why would we fight with Singapore? There's no reason to," and said he had spoken with Bahlil.
A further strand involved connectivity. Communications and Digital Affairs Minister Meutya Hafid urged restraint after former Singapore nominated MP Calvin Cheng suggested Singapore could cut Indonesia's internet connectivity. She noted that much of Singapore's submarine cable connectivity passes through Indonesian waters, and said digital infrastructure should be protected jointly for both countries and global connectivity.
The gas dispute is running alongside renewed disagreement over transboundary haze from Indonesian forest and land fires. During Balakrishnan's visit from Oct 27 to 29, the two countries agreed to set up a joint task force to strengthen information-sharing and enforcement cooperation on the haze. He met Prabowo on Oct 28, and both sides reaffirmed their commitment to close relations despite differences on specific issues. What to watch is whether the task force and further talks settle the matter, and whether Bahlil's unsupported claim about re-exports is followed by any evidence.
Citazioni salienti
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 Lahadalia, Oct 29
I am confident that the meeting will lead to a solution.— Shinta Kamdani, Indonesian Chamber of Commerce and Industry
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Politics & Governance