Bilateral ties in ‘excellent shape’ as Singapore, Indonesia expand cooperation
Singapore has been Indonesia’s top source of foreign investment for more than a decade
[SINGAPORE] Bilateral relations between Singapore and Indonesia are in “excellent shape”, and both countries seek to “chart even stronger ties in this new era of cooperation”, said Prime Minister Lawrence Wong on Monday (Jun 16).
He was speaking at a joint press conference with Indonesia’s President Prabowo Subianto, who was in Singapore for his first state visit and to attend the eighth Singapore-Indonesia Leaders’ Retreat.
PM Wong noted ongoing collaborations in areas ranging from defence to trade and investment.
For instance, he highlighted the expanded framework agreements – on defence, airspace management, and law enforcement – which entered into force on Mar 21 last year.
Their successful implementation is “a testament to Singapore and Indonesia’s ability to work through complicated issues with respect and trust”, he said.
In a Facebook post, Singapore’s Ministry of Defence highlighted the Joint Update on Defence Cooperation (JUDC) signed during the retreat by Defence Minister Chan Chun Sing and his Indonesian counterpart, Sjafrie Sjamsoeddin, who is also a retired lieutenant-general.
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The JUDC reviews bilateral defence engagements and outlines new and enhanced areas of collaboration.
The two countries’ defence cooperation agreement has “unlocked new opportunities” for their armed forces to train and work together, the Ministry of Foreign Affairs (MFA) said in a statement.
It also noted that the first case under the Treaty for the Extradition of Fugitives is now before the Singapore courts, with both countries’ legal agencies working closely to ensure due process.
At the meeting, the leaders also discussed how to enhance bilateral cooperation in areas such as the green economy, which PM Wong described as a “promising new area”.
“We know that climate change will have an outsized impact on small island and archipelagic states like ours,” he said. “But we can turn our vulnerabilities into opportunities.”
On Friday, Singapore and Indonesia inked three memorandums of understanding on cross-border electricity trade, carbon capture and storage, and a sustainable industrial zone.
These were followed by a milestone ceremony on Monday to mark both countries’ shared commitment to implementing the projects, for sustainable economic development and decarbonisation.
The leaders of the two nations also expressed confidence in these agreements helping to unlock the region’s green potential and serving as a key building block for the Asean Energy Grid, MFA said.
Confidence and closer ties
Singapore has been Indonesia’s top source of foreign investment for more than a decade, accounting for over a third of all realised foreign investment into Indonesia last year, noted PM Wong.
“This reflects the confidence we have in Indonesia’s economy and its potential and strength.”
On Sunday, the countries inked two commercial arrangements during the 15th Singapore-Indonesia Six Bilateral Economic Working Groups Ministerial Meeting. One was between Sembcorp Industries and Batamraya Sukses Perkasa, a subsidiary of property developer Panbil Group.
Late last year, the Monetary Authority of Singapore and Bank Indonesia renewed a bilateral financial arrangement to strengthen financial cooperation – for three years, rather than the usual annual renewal.
The longer renewal period, said PM Wong, reflects “our shared commitment to preserving monetary and financial stability amid global economic uncertainty”.
Food is another area of cooperation, with the two countries signing an MOU on Monday on food safety and agricultural technology.
Food security is a key priority for Indonesia and Singapore, and their support in this area includes a Young Farmers Development Programme to exchange best practices on agritech solutions, said PM Wong. The initiative aims to boost productivity, nutrition and food resilience in both countries, according to MFA.
He also underscored the importance of people-to-people exchanges, including cross-border internship opportunities. MFA said the Youth Mobility Programme will facilitate internships for 300 tertiary students each year, and connectivity will be further boosted by new direct flights from Singapore to Padang and Kertajati in Indonesia.
“Copying with pride”
In his speech, President Prabowo said: “It is in Indonesia’s strategic political design to foster the best cooperation and collaboration with Singapore.”
He noted that Indonesia has been adopting some of Singapore’s best practices – a move he described as “copy with pride” – such as its public housing model and state investor Temasek, with the latter inspiring Indonesia’s new sovereign wealth fund Danantara.
Prabowo also expressed interest in deepening collaboration in healthcare and manpower, inviting Singapore to support Indonesia’s plans to expand its network of medical and nursing colleges.
There can also be greater cooperation in the placement of skilled Indonesian caregivers in Singapore, he added.
On connectivity, Indonesia is committed to restoring or even surpassing pre-pandemic traffic levels, with Prabowo having instructed ministries to enhance direct foreign airline access to more Indonesian airports.
On Asean and the world
Both leaders also touched on regional and global developments.
PM Wong said that as founding members of Asean, Singapore and Indonesia will continue working closely with fellow member states to strengthen the region and uphold a rules-based multilateral system.
He also affirmed Singapore’s support for Indonesia’s bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Prabowo expressed concern over the situations in Gaza and the Israel–Iran conflict, stressing the need for peaceful solutions, negotiations, and an immediate ceasefire.
On Myanmar, both leaders agreed on the importance of engagement and pursuing a peaceful resolution.
“Both (Singapore and Indonesia) have succeeded in maintaining a zone of regional peace, prosperity, and mutual support,” said Prabowo.
“I am very confident that our bilateral relationship will continue to grow from strength to strength, with more trust and confidence in each other, as the years will prove.”
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