Prioritizing Domestic Needs, Jakarta Weighs Halting Natural Gas Exports to Neighbors

JAKARTA, Investortrust.id — The Indonesian government is actively considering terminating natural gas exports to neighboring countries by allowing expiring supply contracts to lapse, marking a significant nationalist pivot toward prioritizing domestic energy security over cross-border trade commitments.

Speaking to reporters at the Presidential Palace complex on Wednesday, Oct. 21, 2026, Coordinating Minister for Downstreaming and Energy Transition Bahlil Lahadalia revealed that the policy shift aligns with direct instructions from President Prabowo Subianto mandating that state agencies prepare for economic "survival" conditions amid escalating global uncertainties.

"If other countries hold differing views toward us, they must exercise caution," Bahlil said following a plenary cabinet meeting marking the second year of the Prabowo Subianto–Gibran Rakabuming Raka administration. "I am considering the option not to extend gas export contracts to neighboring nations because we must survive. We must fulfill our domestic requirements first and foremost."

Regional Energy Balance

The prospective export halt threatens to reshape regional energy balances in Southeast Asia, where economies like Singapore and Malaysia have historically relied on piped natural gas from Indonesian fields in South Sumatra and the Natuna Sea. By signaling an uncompromising "domestic first" posture, Jakarta is moving to shield its emerging industrial base, power networks, and fertilizer plants from energy shortages, while signaling to regional trade partners that resource access will be subordinated to sovereign self-sufficiency.

Bahlil explained that the presidential directive issued during the plenary cabinet session stressed the imperative of accelerated policy execution across all ministries and state bodies. Cabinet members were instructed to translate executive priorities into swift, concrete actions without breaching prevailing statutory frameworks.

"Work quickly, execute promptly, do not delay, adhere strictly to regulations, and avoid any regulatory violations," Bahlil said, recounting the president’s instructions to the cabinet.

According to Bahlil, the concept of national survival outlined by the head of state must serve as the primary operational guideline for public officials formulating policy. Within the energy portfolio, that doctrine demands securing supply chains and maximizing the domestic utilization of indigenous hydrocarbon reserves.

Beyond pipeline gas strategy, Bahlil presented a progress report on the broader energy and mineral resources sector over the first two years of the Prabowo-Gibran administration. He highlighted that while raw coal production volumes registered a decline, non-tax state revenue (PNBP) collected from the sector successfully surpassed statutory budget projections, reinforcing the administration's broader push to favor revenue efficiency and pricing power over unrestricted resource extraction.