New opportunities for Singapore, Indonesia businesses to collaborate: Chan Chun Sing

SINGAPORE stands ready to work closely with Indonesia to emerge stronger from the pandemic, said Trade and Industry Minister Chan Chun Sing on Thursday, with Indonesia's Coordinating Minister for Economic Affairs Airlangga Hartarto expressing similar sentiments.

Both economic ministers were speaking to a group of about 175 entrepreneurs and officials from Indonesia and Singapore, at a webinar. The event was co-hosted by the Economic Development Board and the Indonesian embassy, in partnership with McKinsey & Co.

"I'm glad that Singapore and Indonesia continue to share strong bilateral ties, underpinned by a robust economic partnership," said Mr Chan. He highlighted that Singapore continues to be Indonesia's top source of foreign investment, accounting for over US$7 billion in realised investments in the first three quarters of 2020.

"Both sides hold complementary strengths of strong manufacturing bases, centres of innovation and global connectivity," he added. "Together, we can capture new opportunities in Industry 4.0 adoption for the manufacturing sector, and the digital upskilling of micro, small and medium-sized enterprises."

Mr Chan pointed to the Singapore-Indonesia Bilateral Investment Treaty, and the Avoidance of Double Taxation Agreement, as examples of initiatives that both governments have been collaborating on to boost the attractiveness of their respective economies. "We stand ready to work with you to capitalise on opportunities present in both Singapore and Indonesia," he told participants.

Mr Airlangga, who is Mr Chan's counterpart, said Indonesia was excited to collaborate with Singapore, which he called a "long-time and important partner". With vaccinations for Indonesia's healthcare workers and the elderly having begun this month, and mass vaccinations to be rolled out from April, Mr Airlangga also said Indonesia was heading into 2021 with optimism.

"Indonesia remains an exciting prospect," he said. "Our large market is still growing, and digitalisation and young demographics provide many opportunities to boost innovation and further strengthen resilience."

Mr Airlangga cited two major initiatives as examples of progress made in maximising Indonesia's economic potential: the "Omnibus Law" - an ambitious bill to overhaul economic laws and regulations, making Indonesia a more business-friendly destination - and the creation of Indonesia's first sovereign wealth fund, the Indonesia Investment Authority.

In a straw poll conducted later in the event, the overwhelming majority (95 per cent) of attendees polled saw "many synergies" in business collaboration between Singapore and Indonesian companies. However, 50 per cent said they were facing implementation challenges, while 21 per cent said they did not know where to start.

Panellist Darius Tan, assistant chief executive of the Singapore Business Federation, said the chamber's GlobalConnect@SBF initiative was supporting small and medium enterprises (SMEs) in Singapore and Asean, by helping them land commercial deals. He also attested to increasing interest from Singapore businesses to work with Indonesian ones, in areas such as SME microfinancing, upskilling, technology solutions and healthcare.