Indonesia’s gas crunch strains domestic industries, may shake trust in exports

[JAKARTA] Indonesia’s growing gas shortage is forcing the government to prioritise domestic industries – a decision which analysts said could undermine its credibility as an exporter and may push long-standing partners such as Singapore to look elsewhere.

The supply crunch will also have a “severe impact” on Indonesia’s gas-reliant manufacturers – from those in fertilisers and petrochemicals to ceramics and steel – as they face operational strain, threatening a fallout in investments and jobs.

Already, the tight conditions have led the authorities to ask overseas gas customers to accept shipment delays and to urge exporters to defer cargoes well into 2026, a decision which holds significant implications for importers.