‘There’s Common Commitment on Contract Sanctity’: Singapore on Indonesia Gas Cuts
Jakarta. Singapore’s Foreign Minister Vivian Balakrishnan recently said the city-state and Indonesia shared a commitment to honor gas export deals as he wrapped up his Jakarta visit amid heightened tensions.
Amid persistent haze, Jakarta’s decision to trim its Singapore-bound pipeline natural gas supplies to prioritize domestic energy needs has rattled the neighborly ties. The reduction amounts to 31 billion British thermal units per day (BBTUD), which Indonesia said still fell within contractual limits. In a briefing with Singapore’s press, Balakrishnan responded to the gas-related question by telling reporters to “carefully parse the statements” made by both governments.
“You will realize, in fact, there is a common commitment to the sanctity of contract. And that’s good. So all sides understand that there is a reason why signatures and contractual obligations matter, and it goes beyond the individual subject,” Balakrishnan said, as seen in a government-provided transcript.
“It goes to the credibility and the competitiveness of the economies on both sides. So, I am cheered by that. Look at actions, not just at words.”
He went on to say that Singapore’s neighborhood had always gone by contracts over the past decades. “Contracts mean something, and [their] sanctity is upheld. That’s important.”
The gas cuts have been in effect since Saturday. Singapore earlier floated plans to seek remedies if it is found that Jakarta breached any commercial agreements.
Singaporean Prime Minister Lawrence Wong even called on suppliers to “honor their commitments”, putting Indonesia in a defensive mode. Bahlil said that the deal allowed reductions of up to 92 BBTUD, while indirectly telling the city-state to “not lecture Indonesia about honoring contracts”.
Balakrishnan stayed tight-lipped on his meeting with President Prabowo Subianto. He only explained that “communication had occurred at the highest level” between the leaders.
The Indonesian side claimed that it was Balakrishnan who requested the meeting, while also leaving out the specifics of what they discussed.
According to government estimates, Indonesia supplies around 409.55 BBTUD of natural gas to Singapore via pipeline networks prior to the move. Indonesia also ships 146 cargoes of liquefied natural gas (LNG).
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