Tensions rise as Indonesia cuts gas supply to neighbor amid regional haze crisis

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Ministers from Singapore and Indonesia are raising the stakes in a diplomatic spat over a gas supply cut, trading pointed remarks that expose a widening rift stemming from the regional haze crisis.

In the latest salvo in an increasingly testy bilateral conflict, Coordinating Minister for Energy Transition Bahlil Lahadalia last week pushed back against criticism of Jakarta's decision to cut gas exports to Singapore in favor of domestic consumers.

He insisted the move fell within contractual limits and followed President Prabowo Subianto's instruction to honor Indonesia's obligations.

"Do not lecture us, especially the energy ministry, on the importance of honoring contracts," Bahlil said in Jakarta, calling for mutual respect.

"I want to reiterate that we are neither breaching regulations nor violating any contracts … I must say, I am a bit puzzled. Perhaps the person raising this issue has not actually read the contracts?" he said.

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Bahlil's defense came a day after Singapore Prime Minister Lawrence Wong, without taking names, urged all parties which have signed commercial contracts for gas supplies to "honor their commitments", after Jakarta cut 31 million standard cubic feet of gas per day from its pipeline exports to Singapore.

Though Indonesian gas accounts for less than 2 percent of Singapore's total daily gas demand, Wong said Singapore would continue to stand up for its national interests.

Speaking at an energy-focused conference a few hours before Bahlil took a swipe at Singapore last week, Singapore energy minister Tan See Leng highlighted the "concerning" phenomenon of "resource nationalism", though without naming any countries.

Jakarta has insisted that the abrupt export cut was purely pragmatic, aimed at maintaining a reliable domestic gas supply amid global uncertainties.

But observers have questioned its underlying motives, particularly as no other country was affected in the gas supply cut and because the reduction came amid a diplomatic falling out between Indonesia and countries in the region over haze from forest and peatland fires in Kalimantan and Sumatra.

Months into Indonesia's wildfire crisis, patience has worn thin among its neighbors, including Singapore. Jakarta has yet to apologize and instead continues to cite natural factors and weather conditions, while Singapore has demanded concrete plans to contain the fires.

Disappointment

The city-state has expressed disappointment over Jakarta's handling and communication over the issue, such as the early October statement from government spokesperson Syahganda Nainggolan that Indonesia "also sends oxygen" to its neighbors.

"We shouldn't have to put up with this, the smog as a result of the burning. It is entirely preventable," Singaporean Home Minister K. Shanmugam said last month, rejecting the notion that the crisis was simply an act of nature.

The series of pointed exchanges between Indonesia and Singapore has driven their ties to a low point, said international relations expert Dafri Agussalim from Gadjah Mada University, who urged Jakarta to take a more mature approach in resolving shared challenges.

Since establishing diplomatic relations in 1967, Singapore and Indonesia have had their share of disagreements, though over the years the two neighbors managed to navigate the strains through diplomacy, Dafri said, citing a similar transboundary haze crisis in 2015 that triggered ASEAN to expand its regional cooperation.

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But current diplomatic handling of the ongoing regional haze issue, he noted, has been marred by Jakarta's apparent use of a "narrow-minded nationalistic" approach by cutting gas exports and amplifying enmity against the city-state.

"The ongoing haze crisis has created more strain between the two countries," Dafri said. "Indonesia should have pursued quieter diplomacy talks to solve the crisis rather than displaying such a narrow-minded approach."

Indonesian Foreign Ministry spokesperson Yvonne Mewengkang told The Jakarta Post last month that Indonesia remained "committed to strengthening communication and cooperation with its neighbors" on controlling the fires.

"In the context of its relationship with Singapore, Indonesia continues to engage in ongoing communication and coordination across various levels and sectors. This includes discussions on the status of forest and land fires," she said.