Singapore and Indonesia Address Gas Supply and Haze Disputes
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Singapore and Indonesia Address Gas Supply and Haze Disputes

Asia Manufacturing Review Team | Thursday, 29 October 2026

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Singapore and Indonesia leaders commit to resolving bilateral tensions over gas supplies, transboundary haze and electricity trade, while strengthening information sharing, diplomatic communication and regional cooperation.

Singapore Prime Minister Lawrence Wong and Indonesian President Prabowo Subianto have held high-level discussions to address bilateral challenges and strengthen cooperation between the neighbouring countries. The engagement comes amid differences over natural gas supplies, transboundary haze caused by forest and land fires, and plans for cross-border electricity trade. Singapore Foreign Minister Vivian Balakrishnan confirmed the leaders’ communication during his visit to Indonesia.

Balakrishnan said communication between the two leaders had established a political commitment to resolving outstanding issues, with both governments now focused on implementing practical measures. He did not disclose details of the leaders’ discussions but described his own meetings with Indonesian officials as constructive and aimed at finding solutions through direct dialogue.

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During his three-day working visit to Jakarta, Balakrishnan met Indonesian Foreign Minister Arrmanatha Christiawan Nasir and called on President Prabowo. The discussions reaffirmed the longstanding relationship between the two countries and highlighted the importance of maintaining open communication as they manage differences over shared regional concerns.

Transboundary haze was a major focus of the diplomatic engagement. Singapore and Indonesia agreed to establish a joint task force to strengthen information sharing, coordinate investigations and improve cooperation in holding companies accountable for forest and land fires. The initiative is intended to help authorities exchange evidence across borders and take appropriate action against businesses found responsible for activities contributing to the haze.

The two countries also agreed to establish a hotline between their foreign ministries to maintain communication and address bilateral concerns more effectively. Both sides acknowledged that forest fires affect public health and the environment across Southeast Asia, making coordinated action necessary to prevent recurring pollution episodes.

Energy supplies have also emerged as an important issue. Indonesia began reducing natural gas exports to Singapore in late October to prioritise domestic electricity demand, prompting discussion about existing supply contracts. Indonesian officials said the reductions remained within contractual limits, while Singapore emphasised the importance of honouring commercial agreements.

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Balakrishnan said both countries shared a commitment to respecting contracts, noting that contractual reliability supports investor confidence and the competitiveness of their economies. He also highlighted the importance of continued investment in energy infrastructure, diversified supplies and regional connectivity to strengthen energy security.

The countries are also exploring cross-border electricity cooperation, although Indonesia is reviewing proposed exports to prioritise domestic requirements. Singapore has issued conditional licences for six electricity import projects from Indonesia, with a combined proposed capacity of 3 gigawatts. The discussions reflect the challenge of balancing domestic energy needs with regional cooperation and long-term infrastructure development.


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