Jakarta. Indonesia began reducing natural gas exports to Singapore on Saturday, cutting supplies from two major production areas as the government moves to secure more energy for domestic industries and accelerate the development of its petrochemical sector.
The reduction amounts to a combined 31 billion British thermal units per day (BBtud), comprising 15 BBtud from the Natuna gas fields and 16 BBtud from Sumatra.
Djoko Siswanto, head of Indonesia’s upstream oil and gas regulator SKK Migas, said the adjustments would affect only Singapore because the gas pipeline networks involved serve that market exclusively.
“Supplies from Natuna will be reduced by 15 BBtud, while those from Sumatra will fall by 16 BBtud,” Djoko said recently.
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“No other countries will be affected because the pipelines connect only to Singapore,” he added.
The cuts come as the government reviews its long-standing gas export arrangements amid growing domestic demand for energy and industrial feedstock.
On Oct. 21, Energy and Mineral Resources Minister Bahlil Lahadalia signaled that Indonesia could decline to renew gas export contracts with neighboring countries.
Bahlil also criticized what he described as negative remarks by neighboring countries about Indonesia’s energy sovereignty policies.
“If other countries want to make certain remarks about us, they should be careful. I may also consider not extending gas export contracts with neighboring countries,” Bahlil said.
The minister said the government was conducting a comprehensive review of gas export allocations and management to ensure that more supplies could be directed toward domestic industries, particularly the expanding petrochemical sector.
Government Seeks to Redirect More Gas to Domestic Market
Indonesia currently allocates approximately 70% of its natural gas production to domestic consumption, with the remaining 30% exported, according to government figures.
The Energy and Mineral Resources Ministry is reviewing the export share as part of efforts to gradually increase the volume available to domestic manufacturers.
Natural gas serves not only as a fuel for electricity generation and industrial operations but also as a key feedstock for petrochemical production.
By processing more gas domestically, the government hopes to support higher-value manufacturing activities, including the production of fertilizers, plastics and chemical inputs used by the pharmaceutical industry.
The policy reflects a broader shift in Indonesia’s approach to natural gas management.
For decades, Indonesia was a major exporter of liquefied natural gas (LNG) and pipeline gas in Southeast Asia, supplying overseas markets under long-term contracts.
Gas from the Natuna Sea Block A and production areas in Sumatra has been delivered to Singapore through pipeline arrangements established in the late 1990s and early 2000s.
However, rising domestic energy demand and the government’s push to expand downstream industries have increased pressure to retain more gas for local consumption.
The government has also emphasized the importance of securing reliable and affordable gas supplies for power generation and industrial development.
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