Just 2 days after Indonesia threatened to cut gas supplies, Singapore renewed its deal with Malaysia.
In business, uncertainty is the enemy. Business people value stability and predictability not partners who throw tantrums and behave like spoiled children.
Indonesia is no joke.
Remember a few days ago when their energy minister said he wouldn't hesitate to block exports to countries that "do not respect Indonesia"?
Well, yesterday he did it.
Indonesia has disclosed that they have cut 62 million cubic feet a day of gas to Singapore (from SKK Migas, Natuna and Sumatra).
If you didn't know the importance of this, let me briefly explain.
Singapore makes 95% of its electricity from gas. In 2025 almost HALF arrived by pipeline mostly from Indonesia.
Essentially it's the one lever Indonesia has over it's neighbours.
So what did Singapore have to say about this?
Well they claim that these won't affect energy prices that much in the short term and that the cut is less than 2% of daily demand.
Indonesia is attempting something I like to call 'maximum message, minimum leverage'.
The thing they don't realise is that their next buyer will learn from this.
Good luck.
Don't ever walk up on me as a fan thinking we're just gonna chat. If you approach me, you're ending up with dick buried in your guts. Test me if you want!