Singapore Foreign Minister Vivian Balakrishnan confirmed on Oct 28 that Prime Minister Lawrence Wong and Indonesian President Prabowo Subianto have set a high-level political commitment to address bilateral challenges, including regional haze and energy supply questions. Speaking in Jakarta following a meeting with President Prabowo, Dr Balakrishnan stated that direct communication at the highest level had established a mutual resolve to execute necessary plans as the two neighboring countries manage policy differences.
High-Level Meetings and Joint Task Force Formation in Jakarta
Dr Balakrishnan arrived in Jakarta for a three-day official visit, meeting with Indonesian Foreign Minister Arrmanatha Nasir on Tuesday. During their discussions, both ministers agreed to establish a joint task force designed to coordinate investigations into errant companies by sharing information and cross-border evidence. They also announced a new hotline to handle any differences in bilateral issues. Dr Balakrishnan stated, We want Indonesia to succeed, and we want this because our futures are intertwined.
He also remarked, But precisely at a moment like this, it’s important for cool heads to prevail,
stressing the need for direct, honest and constructive conversations.
The urgency of addressing the haze stems from a persistent problem across South-east Asia.
Did You Know? Foreign direct investment into Indonesia from Singapore has ranked as the nation’s premier external capital source since the year 2014, with total commitments attaining US$17.4 billion (S$22.6 billion) across 2025.
Officials debate energy supply reductions and contractual limits
The diplomatic engagements coincide with discussions over energy supplies after Indonesia began cutting natural gas exports to Singapore on Oct 24 to prioritize domestic electricity needs. Singapore’s gas importer reported that this reduction amounts to 17 billion British thermal units per day over an 18-day period, accounting for less than 2 per cent of Singapore’s daily gas demand.
Indonesian Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia maintained on Oct 26 that these export cuts remain within contractual limits. In contrast, Prime Minister Lawrence Wong stated that Singapore expects all parties who have signed commercial contracts for gas supplies to “honour their commitments”. Addressing the discrepancy in Jakarta, Dr Balakrishnan highlighted a shared regional dedication to the sanctity of contracts, emphasizing that both economies rely on mutual commercial credibility and competitiveness.
Singapore manages energy disruption through diversified sources
To manage the immediate energy disruption, Singapore is operating from a position of strength through diversified energy sources and established liquefied natural gas terminals. Additional strategies involve the Asean Power Grid and regional energy investment to strengthen energy security, particularly as artificial intelligence and data centres drive up electricity demand.
Looking forward, Singapore and Indonesia are preparing to celebrate 60 years of diplomatic relations in 2027, the same year Singapore assumes the chairmanship of ASEAN. Foreign Minister Arrmanatha Nasir has pledged Indonesian backing for Singapore’s upcoming ASEAN leadership, reinforcing broader regional goals to deepen economic integration and protect supply chains against future disruptions.
Government Action on Haze and Corporate Accountability
Official disclosures on Oct. 23 revealed that the National Environment Agency (NEA) had dispatched formal legal notices pursuant to the THPA to the 10 firms. Subsequently, Senior Minister K Shanmugam outlined what the government expects of the companies and how they will be assessed under the notices, stating to senior leaders during a meeting on Oct. 28, I have asked to meet you personally because the haze situation is serious. We want to be clear about the government’s position. And what we expect from each of you.
Later, he made public the administration’s plan to put forward legislative revisions regarding the Transboundary Haze Pollution Act (THPA) before Parliament during November. Emphasizing the gravity of the situation, SM Shanmugam stated, The haze has caused real harm to Singapore and Singaporeans,
adding that the Government is determined
to act.
Indonesia reduces natural gas exports to Singapore
When did Indonesia begin cutting natural gas exports to Singapore?
Indonesia began reducing natural gas exports to Singapore on Oct 24 to prioritize domestic electricity needs.
What specific measures were agreed upon to tackle transboundary haze?
Indonesian and Singaporean officials agreed on Oct 27 to form a joint task force aimed at coordinating investigations into errant companies, alongside a dedicated hotline.
When do existing natural gas import contracts between Indonesia and Singapore expire?
Existing gas import contracts between the two nations are scheduled to reach their expiration dates at the end of 2028.
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