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Singapore, Indonesia Team Up on Green-Tech, Digitalisation


Singapore and Indonesia reaffirmed their strong and long-standing economic ties; and to explore opportunities in the development of Indonesia’s new capital city, Nusantara, both nations welcomed the Letters of Intent submitted by Singapore-based businesses from a variety of sectors, including construction, telecommunication and finance. This collaboration in renewable energy and the digital economy was expanded.

Singapore’s Senior Minister and Coordinating Minister for National Security Teo Chee Hean and Indonesia’s Coordinating Minister for Maritime Affairs and Investments Luhut Binsar Pandjaitan signed a Memorandum of Understanding (MOU) on Renewable Energy Cooperation.

Both countries will facilitate investments in the development of renewable energy manufacturing industries, such as solar photovoltaics (PV) and battery energy storage systems (BESS) in Indonesia, as well as cross-border electricity trading projects between Indonesia and Singapore, under the terms of the MOU.

Recognising the synergies shared by Singapore’s and Indonesia’s tech ecosystems, Singapore’s Minister for Trade and Industry Gan Kim Yong and Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto also signed the MOU on the Singapore-Indonesia Tech:X Programme.

The MOU will establish the Tech:X Programme, which enables young tech professionals from Singapore and Indonesia to work in each other’s countries, strengthens ties between the two nations’ tech ecosystems, and enables young tech professionals to pursue expanding opportunities in the digital economy.

“Through the Tech:X Program, we hope that young tech talent from both countries will be able to learn from one another, gain exposure, and expand the capabilities of both countries’ tech workforces,” Minister Gan says.

Ministers Gan and Airlangga also witnessed the signing of nine partnership documents between Singapore and Indonesia companies on 15 March 2023, in conjunction with the Leaders’ Retreat. In addition to health tech and ed-tech, the partnerships are in the digital economy.

The annual G2G platform, as well as the Singapore-Indonesia Six Bilateral Economic Working Groups (6WG), facilitate close economic collaboration between Singapore and Indonesia.

The 6WG platform addresses economic collaboration in the following areas: Batam, Bintan, Karimun, and other Special Economic Zones: Investments, Manpower, Agribusiness, Transportation, and Tourism.

Singapore and Indonesia have close commercial and investment ties. With bilateral trade totalling S$76.4 billion in 2022, Indonesia is Singapore’s sixth-largest trading partner. Since 2014, Singapore has been Indonesia’s top source of Foreign Direct Investment (FDI), with Singapore’s investments in Indonesia totalling US$17.5 billion by 2022.

OpenGov Asia earlier reported that Prime Minister Lee Hsien Loong and Indonesian President Joko Widodo recently met at the Singapore-Indonesia Leaders’ Retreat. This was the sixth Leaders’ Retreat for Prime Minister Lee and President Joko Widodo and the first to be held in Singapore since the COVID-19 pandemic.

During President Joko Widodo’s two terms in office, the relationship between the two countries had significantly improved, according to both leaders. This laid the groundwork for them to collaborate in new ways that are profound, multifaceted, forward-looking, and beneficial to both countries.

The ratification of all three agreements under the Expanded Framework was celebrated by the Leaders. These included the Agreement on the Realignment of the Boundary between the Jakarta Flight Information Region (FIR) and the Singapore FIR, the Extradition Treaty, and the Defense Cooperation Agreement.

The Leaders anticipated the next step of obtaining International Civil Aviation Organisation approval for the new arrangements under the FIR Agreement so that both countries could implement all three agreements at a mutually agreed upon date. The resolution of these enduring issues demonstrates the maturity and resilience of bilateral relations.


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