Singapore. Singapore is eyeing an Indonesian deal to gain uninterrupted access to Jakarta’s natural gas as well as to keep its position as a major refined fuel supplier.

The city-state is currently pursuing a legally binding protocol on energy supplies with Australia, which has largely provided its liquefied natural gas. Singapore and New Zealand have also made a pact on avoiding unnecessary export curbs on fuel. And now the government wants to replicate this arrangement with Jakarta, according to its minister of state for trade Gan Siow Huang.

“[The agreement] commits both countries not to impose export restrictions that will affect each other in times of crisis,” Gan recently told a press briefing with Indonesian journalists in her office.

“With Indonesia, if we can have a similar thinking, it will be a win-win. We export refined fuel products to Indonesia, which [sells] natural gas to Singapore. We can have this bilateral agreement.”

She went on to say that such a pact could “calm investors”, citing the “assurance” it gives. 

Singapore holds the crown as Indonesia’s top foreign investor. In the first half of 2026, investments from Singapore came in at $8.8 billion. The country also makes up the lion’s share of Indonesia’s energy imports, even causing Jakarta to lose its six-year surplus run in May. And if Jakarta ever considers changing suppliers, Gan hopes that Indonesia will take into account a possible hike in the shipment costs compared to buying from its close neighbor.

“And quality-wise, is it the same? Is it good for the industry in terms of their business? I also don’t know. But the bottom line is that these are all commercial decisions,” Gan said.

Overall Indonesia-Singapore trade neared $14 billion from January to May 2026, government data showed. The Central Statistics Agency (BPS) reported that oil and gas commodity imports from Singapore amounted to roughly $5.1 billion over the said period. Singapore also made up 29.38% of the total foreign energy inflows, seconded by Malaysia at $3.6 billion (20.54%).   

Singapore obtains a large part of its natural gas via pipeline from Indonesia and Malaysia. However, current contracts for Indonesian supplies are bound to expire at the end of 2025. Singapore’s power generation is heavily dependent on natural gas imports.

In recent years, Indonesia had floated plans to change the source of some of its fuel imports from Singapore to the US as part of tariff negotiations. Energy Minister Bahlil Lahadalia had even mulled procuring the commodity from the Middle East, citing competitive prices despite the considerable distance.