Indonesia Cuts Gas Exports to Singapore as 32.4% of Firms Plan Investment

3 articles · Updated · The Jakarta Post · Oct 26

Oct. 24 export cuts to Singapore have widened concern beyond energy trade, putting Indonesia’s credibility as a reliable economic partner and regional leader under scrutiny.
32.4% of firms planned to invest in the next six months in Kadin’s third-quarter 2026 survey, down from 47.1% in late 2025, with policy uncertainty cited as the top business challenge.
That uncertainty matters because upstream gas projects require large upfront spending, years of development and returns that can take a decade or longer, making stable contracts and market access critical.
Indonesia says the move supports domestic energy security for power generation and manufacturing, but the report argues the government must clarify whether the cuts were negotiated under contracts or imposed unilaterally.
A new oil and gas law meant to improve legal certainty now faces a tougher test, as Indonesia competes with other producers for long-term capital.