Skip to main content

Indonesia raises prospect of halting energy exports over disrespect

Bahlil Lahadalia did not identify any country, while separately questioning whether gas export contracts with neighbours should be extended.

By Maya Santos

Natural gas pipelines and industrial processing equipment
Photo: The Business Times

Energy minister Bahlil Lahadalia said on Oct 22 that Indonesia would examine its energy export agreements and could suspend supplies to nations it regarded as disrespectful. Speaking in Jakarta, he gave no indication of which countries or disputes had prompted the warning.

At a ceremony commissioning gas production facilities, Bahlil called for international disagreements to be addressed through respectful dialogue. He said Jakarta was still prepared to negotiate energy supply deals with nations that recognised Indonesia as an equal, including those with no current contracts.

Bahlil had told reporters after a Cabinet meeting on Oct 21 that he was considering letting gas export contracts with neighbouring nations lapse, citing Indonesia’s domestic requirements. Neither appearance included the naming of a potential target.

President Prabowo Subianto had earlier urged ministers to protect natural resources for Indonesians’ benefit. He said difficult circumstances meant the country needed to put its survival and national interests first.

For Singapore, Indonesia is a major natural gas supplier, Deputy Prime Minister Gan Kim Yong told Parliament in September 2025. Gan said the existing import contracts would expire as 2028 ended.

The countries are also negotiating Indonesian low-carbon electricity supplies for Singapore. Bahlil said on Oct 19 that differences on pricing had prevented agreement. On Oct 7, he had announced a review of electricity export arrangements aimed at increasing Indonesia’s economic benefits and influence over prices and project development.

Conditional licences from Singapore’s Energy Market Authority cover six Indonesian electricity import projects representing 3 gigawatts of capacity. Indonesia and Singapore are also pursuing cross-border electricity projects of at least 3.4 gigawatts by 2035.

Keep reading: Trade & Policy

All Trade & Policy stories

Latest in Finance

All latest