Antara News·Indonesia·Thursday, October 29, 2026 at 10:26 AM UTC

Indonesia says haze, gas issues will not derail Singapore investment

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Shofi Ayudiana, Yashinta Difa

Jakarta (ANTARA) - Investment and Downstreaming Minister Rosan Roeslani said Singapore's investment commitments to Indonesia remained intact despite bilateral challenges, including transboundary haze and adjustments to natural gas exports.

Speaking in Jakarta on Thursday, Rosan said he had met with Singaporean Foreign Minister Vivian Balakrishnan to ensure that bilateral economic and investment cooperation continued without disruption.

“Commitments—whether regarding investment or other matters—remain in place and open,” Rosan said after attending a national leadership meeting of the Indonesian Chamber of Commerce and Industry (Kadin).

He said both countries intended to strengthen coordination to identify opportunities for mutually beneficial cooperation.

According to data from the Investment Coordinating Board (BKPM), Singapore was Indonesia's largest source of realized foreign investment from January to September 2024. Investments from Singapore reached US$14 billion, accounting for 29.6 percent of Indonesia's total investment realization of Rp777.8 trillion during the period.

Rosan's remarks followed Balakrishnan's visit to Indonesia, which included high-level talks with President Prabowo Subianto in Hambalang, West Java.

Balakrishnan emphasized the importance of high-level communication in translating political agreements into concrete action.

Although details of the presidential meeting were not disclosed, the visit underscored both countries' commitment to implementing existing bilateral agreements.

The two sides also discussed transboundary haze, a longstanding regional concern. They agreed to establish a joint task force to strengthen forest and land fire management, while Indonesia reaffirmed its commitment to mitigating the environmental impact of fires.

Bilateral relations have also been affected by adjustments to natural gas supplies from Indonesia to Singapore.

Indonesia recently reduced gas supplies from the Natuna fields by 15 billion British thermal units per day (BBTUD) and from Sumatra by 16 BBTUD.

Coordinating Minister for Downstream and Energy Transition Bahlil Lahadalia said the adjustments remained within the minimum supply thresholds stipulated in the contracts.

He described the reduction as an 8 percent cut against a permitted limit of 10 percent, saying it therefore did not constitute a breach of contract.

National Economic Council (DEN) Chairman Luhut Binsar Pandjaitan echoed that position, dismissing concerns about possible diplomatic friction.

He said Indonesia continued to prioritize its national interests while maintaining strong bilateral relations.

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