Singapore-Indonesia Economic Ties Strengthen Amid Global Uncertainty
Singapore and Indonesia have renewed collaboration in key sectors to strengthen their economic ties amid global uncertainty. The agreements were reached at the 15th Singapore–Indonesia Six Bilateral Economic Working Groups Ministerial Meeting (6WG MM), held in Singapore on June 15. During this time, both countries reaffirmed their commitment to expanding economic ties between Singapore and Indonesia. The meeting focused on six strategic areas: the Batam, Bintan, and Karimun (BBK) region, investments, manpower, transport, agribusiness, and tourism.
Singapore and Indonesia’s economic ties remain strong and resilient even in uncertain times. This is a testament to the strength of the relationship between the two nations. Bilateral trade reached US$57.6 billion in 2024, and Singapore has been Indonesia’s top foreign investor since 2014, with over US$20.1 billion in FDI this year alone.
The Signing of Two Key Commercial Deals
The signing of two key commercial deals also took place during this conference. The first was a commitment between Sembcorp Development and PT Batamraya Sukses Perkasa to co-develop the Tembesi Innovation District in BBK, expected to generate 20,000 jobs. The second was a memorandum of understanding between the Singapore Semiconductor Industry Association and Indonesia’s Chamber of Commerce to expand market access for tech companies.
Singapore and Indonesia also agreed on the need to enhance regulatory frameworks and public–private partnerships. They highlighted growth opportunities in the BBK region, especially in visa facilitation, green infrastructure, and data centre development in Nongsa Digital Park.
Strengthening Bilateral Ties Through Youth, Tech, and Tourism Initiatives
Singapore and Indonesia also unveiled plans to boost manpower through youth-focused programmes like Tech:X and discussed tech-driven collaboration in agribusiness to strengthen food industry trade. Improvements in air connectivity and joint tourism efforts were also discussed. With 2.5 million Indonesians visiting Singapore and 1.4 million Singaporeans travelling to Indonesia in 2024, tourism remains a vital link in Singapore–Indonesia economic ties.
The outcomes of the meeting will be presented at the Indonesia–Singapore Leaders’ Retreat on June 16, where both countries aim to further solidify their strategic partnership.
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