Singapore to deepen investment, energy cooperation with Indonesia

By Romel S. Gurky

Singapore and Indonesia agreed to expand cooperation in renewable energy, digital infrastructure, investment and defense following the annual Singapore Indonesia Leaders' Retreat, with both countries signing a series of agreements and memoranda of understanding.

Speaking at a joint press conference with Indonesian President Prabowo Subianto on Monday, Singapore Prime Minister Lawrence Wong said Singapore would continue investing in Indonesia, citing growing opportunities in downstream industries, digital infrastructure and advanced technologies.

Wong said investor interest remains strong in the Batam, Bintan and Karimun (BBK) region, which is developing into a digital hub. The two countries will jointly commission a study on the BBK technology sector to identify future growth opportunities.

He also highlighted the Kendal Industrial Park in Central Java, which marks its 10th anniversary this year. The industrial estate has reached full occupancy and will expand by another 1,000 hectares to accommodate additional investment and create new jobs.

In the energy sector, Wong said the countries are jointly developing one of Indonesia's largest utility scale solar power projects in Morowali, Central Sulawesi, to supply renewable electricity to industries. The project is being developed by Sembcorp in partnership with PT Sumber Energi Surya Nusantara and the Indonesia Investment Authority.

Singapore and Indonesia also witnessed the signing of memoranda of understanding between Indonesia's sovereign investment agency Danantara and Singapore's Keppel Electric, Sembcorp Industries and Singapore Energy Interconnections to establish a framework for negotiations on cross border electricity trade.

Wong said the cross border electricity initiative would support both countries while contributing to the development of the ASEAN Power Grid.

The two leaders also agreed to strengthen supply chain resilience, expand cooperation in advanced technologies and the digital economy, and deepen people to people exchanges through education and improved air connectivity.

Singapore's universities will expand exchange programs with Indonesia's Garuda Schools initiative, while new direct flights between Singapore and Pontianak, West Kalimantan, are expected to improve tourism and business travel.

On defense, Wong said Singapore and Indonesia will continue implementing their defense cooperation agreement, including exploring the joint development of military training facilities in Baturaja, South Sumatra, and the Siabu Air Weapons Range.

The leaders also discussed regional security, reaffirming their commitment to ASEAN centrality and cooperation to keep the Straits of Malacca and Singapore safe, open and accessible in accordance with international law.

Editing by Alexander Ginting