Indonesia defends gas export cuts; says existing contracts have not been breached
Indonesia has defended its decision to reduce piped gas exports to Singapore, asserting that the cuts remain within contractual limits. Energy Minister Bahlil Lahadalia stated that the reduction is due to maintenance and domestic needs, while dismissing claims of a conflict between the two nations.
Why it matters
The dispute touches on regional energy security and the stability of international trade contracts between Southeast Asian neighbors.
JAKARTA (The Straits Times/ANN): Indonesia has defended its gas export cuts amid concerns raised by Singapore, saying it would not be lectured on honouring contracts and that the reductions do not breach existing agreements.
Energy and Mineral Resources Minister Bahlil Lahadalia said on Oct 26 that Indonesia had reduced piped gas exports by 31 million standard cubic feet per day, or about 8 per cent of the 409.55 million supplied through pipelines from the Natuna Sea and mainland Sumatra.
“Do not lecture Indonesia about its commitment to honouring and respecting contracts,” he said, stressing that the cuts remained within the minimum limits allowed under existing agreements.
“The 31 million that we have reduced is still within the minimum contractual limits. If we had reduced supplies by 10 per cent, then we would have breached the contract.”
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