Business · Trade · 17 hrs ago
Indonesia Orders Energy and Mineral Exports to Go Directly to Buyers
Indonesia’s energy minister, Bahlil Lahadalia, ordered exports to go straight to buyers rather than through transit countries.
The instruction was announced in Jakarta and covers minerals such as coal as well as liquefied natural gas, including shipments to Japan and South Korea.
The order targets routes through Singapore, which has been used as a transit point for some Indonesian exports.
One Indonesian official estimated that about 50 million tonnes of coal are exported through Singapore, but the government has not yet set out how direct shipments would work.
Bahlil says the change will protect Indonesia’s sovereignty and national interests, while a trade report says transit countries may gain from handling transactions and recording exports.
An international relations expert warned that a confrontational approach could hurt Indonesian businesses, and argued that the government should improve domestic export services and business conditions.
The instruction also follows a recent reduction in some gas supplies to Singapore, but the detailed plan for ending transit exports remains unclear.
Indonesia has ordered energy and mineral exports to be shipped directly to destination countries rather than through intermediary countries.
Energy and Mineral Resources Minister Bahlil Lahadalia gave the instruction at the Minerba Convex 2026 opening in Jakarta on November 2.
The order covers commodities including coal and liquefied natural gas, with LNG shipments to Japan and South Korea also to travel directly.
Bahlil said the policy was intended to protect Indonesia’s sovereignty and national interests.
An international relations practitioner warned that bypassing Singapore could hurt Indonesian businesses if the government does not address domestic competitiveness and export logistics.
- Who
- Energy and Mineral Resources Minister Bahlil Lahadalia issued the instruction to officials in his ministry and the upstream oil and gas regulator.
- What
- Energy and mineral exports are to go directly to their destination countries instead of through intermediary countries.
- When
- November 2, 2026, at the opening of Minerba Convex 2026.
- Where
- Jakarta, Indonesia.
- Why
- Bahlil said the policy protects Indonesia’s sovereignty and national interests. He also cited concerns that transit countries may benefit from trade records and tax receipts.
Indonesian government
Dinna Prapto Raharja
Policy rationale
Indonesian government
Bahlil said exports should go directly to buyers to protect Indonesia’s sovereignty and national interests.
Dinna Prapto Raharja
Raharja said treating the use of Singapore as wrongdoing overlooks its competitiveness and business networks.
Business impact
Indonesian government
The government said the instruction would end shipments through intermediary countries.
Dinna Prapto Raharja
Raharja warned that Indonesian businesses and the wider economy could suffer unless domestic business support and export processes improve.
President Prabowo Subianto told a cabinet meeting that Indonesia was in a survival situation and urged the government to prioritize national interests and protect its natural resources.
Bahlil said Indonesia was reducing its pipeline gas supply quota to Singapore, diverting 31 MBTU to Batam and Bintan out of 409.55 billion MBTU scheduled for delivery.
Bahlil ordered officials at the Minerba Convex 2026 opening in Jakarta to send energy and mineral exports directly to destination countries.
- Order announced
- November 2, 2026
- Event
- Minerba Convex 2026 opening, Jakarta
- LNG destinations named
- Japan and South Korea
- Coal exports via Singapore
- About 50 million tonnes, according to mineral and coal director general Tri Winarno
- Pipeline gas diverted
- 31 MBTU to Batam and Bintan
- Indonesian coal exports in 2025
- About 540 million tonnes, or 43% of coal traded worldwide
3 sources
What people are saying
Indonesia is a sovereign country. It is not a country that can be ordered around by anyone.
I order that there must no longer be shipments of natural resources through certain transit countries. It is not allowed anymore.
I want to say that this achievement should not be framed as Singapore’s ‘cheating’, but as Singapore’s ‘competitiveness’ developing because Indonesia also needs support from Singapore, which has business networks and can guarantee business certainty that also determines whether an international business transaction takes place.