Singapore Foreign Minister Visits Indonesia Amid Energy and Haze Disputes
Foreign Minister Vivian Balakrishnan will visit Indonesia to address diplomatic tensions over reduced gas exports and severe transboundary haze caused by Indonesian forest fires.
Singapore Foreign Minister Vivian Balakrishnan is scheduled to visit Indonesia on Tuesday to address escalating diplomatic tensions involving energy security and environmental pollution. The friction follows Indonesia's decision to reduce pipelined gas exports to Singapore by approximately 8%, a move Jakarta justifies as necessary to protect domestic supplies.
While the reduction impacts less than 2% of Singapore's daily demand, Prime Minister Lawrence Wong called for contract signatories to honor their commitments. Bahlil Lahadalia, Indonesia's Energy Minister, rejected these criticisms and asserted that current supply levels meet minimum contractual requirements.
Bilateral relations are further strained by the most intense forest fires Indonesia has seen in 11 years, which have caused severe transboundary haze in Singapore and Malaysia. Senior Minister K Shanmugam criticized Indonesian officials who suggested the country's forests provide oxygen to its neighbors, arguing that the region is suffering because of companies breaching regulations.
Separately, Singapore's state investor Temasek and sovereign wealth fund GIC have denied allegations that they pressured MSCI to demote the status of Indonesia's equity market.
