Indonesia Is Cutting Gas Exports to Singapore to Fix a Problem at Home

Indonesian President Prabowo Subianto waving while wearing a traditional peci cap Indonesian President Prabowo Subianto waving while wearing a traditional peci cap
Samsul Said/Bloomberg

Indonesia has begun trimming pipeline natural gas exports to Singapore, redirecting supply toward its own domestic electricity needs as President Prabowo Subianto pushes an energy security agenda for Southeast Asia’s largest economy.

The cuts are specific and, for now, modest in scale. Pipeline deliveries to Singapore are being reduced by about 31 million standard cubic feet per day, roughly a 9% cut to Indonesia’s pipeline exports there. Singapore’s government has said the reduction represents less than 2% of the country’s total daily gas demand, a gap its own supply diversification is expected to absorb without major disruption.

The real pressure sits on Indonesia’s side of the border. The country has been grappling with a domestic fuel crunch severe enough to produce petrol queues in Bali stretching up to 24 hours, a level of visible public strain that has pushed the government toward prioritizing domestic supply over export commitments, even with a close regional partner like Singapore.

Indonesian Energy Minister Bahlil Lahadalia made that priority explicit, telling reporters the country would not hesitate to direct its natural resources toward its own needs first. He said President Prabowo had directed Indonesia to adopt what he described as a survival-oriented approach, language that frames the export cut less as a routine supply adjustment and more as a response to genuine domestic strain amid broader geopolitical and global energy pressures.

For Singapore, the immediate impact looks manageable given how small a share of its total gas demand the cut represents, but the move still carries signal value. Indonesia has long been a reliable pipeline gas supplier to its smaller neighbor, and any reduction, however modest, raises questions about how firmly regional energy supply commitments hold when a supplier country faces its own domestic pressure.

Whether the cut remains temporary, as some reporting has characterized it, or becomes a more lasting recalibration of Indonesia's export priorities will likely depend on how quickly the domestic fuel situation stabilizes. Until then, Jakarta's message is unambiguous: when supply is tight, Indonesia's own electricity needs come first.