..Singapore\u2014as Indonesia\u2019s strategic trading partner and investor\nover the past decades\u2014views the Prabowo administration as\nstable..Jakarta (ANTARA) - As Indonesian President Prabowo Subianto and\nSingapore\u2019s Prime Minister Lawrence Wong concluded their annual Leaders\u2019\nRetreat at Jakarta\u2019s Merdeka Palace on Monday (July 6), the two\ncountries inked a total of 26 agreements.<\/p>\n
The total surpassed the 19 agreements signed last year\u2014a jump that\nsignals stronger ties between the two neighbors.<\/p>\n
President Prabowo noted that the Leaders\u2019 Retreat demonstrated the\nmaturity, trust, and strategic value of the Indonesia-Singapore\nrelationship. The three-hour meeting underscored the growing level of\nmutual trust between the two nations.<\/p>\n
Of the 26 agreements announced, 18 are government-to-government (G2G)\npacts, while the remaining eight are business-to-business (B2B)\ndeals.<\/p>\n
The agreements cover a broad range of sectors, including trade,\ninvestment, energy, green initiatives, digital transformation, and human\ncapital development.<\/p>\n
Prabowo emphasized that economic cooperation remains the bedrock of\nthe bilateral relationship between Indonesia and Singapore, with\nincreased collaboration visible across nearly all sectors.<\/p>\n
The growing role of Danantara Investment Management Agency (BPI\nDanantara) was also spotlighted as the body appointed to implement\ncross-border electricity trade. The move positions Danantara as a key\nvehicle for Indonesia\u2019s economic diplomacy.<\/p>\n
The cross-border electricity trade roadmap, signed by Danantara CEO\nRosan Roeslani alongside Singaporean partners, was followed by a series\nof business-to-business memoranda of understanding (MoUs) between\nDanantara and three Singaporean entities: Keppel, Singapore Energy\nInterconnections, and Sembcorp.<\/p>\n
Beyond energy, the two countries also agreed on food supply chain\nresilience and carbon credit collaboration under Article 6 of the Paris\nAgreement. The climate change issue\u2014whose impacts have become\nincreasingly apparent recently\u2014has formally entered the architecture of\nthe two nations\u2019 bilateral cooperation, moving beyond policy discussions\ninto practical cooperation.<\/p>\n
The Malacca Strait amid Middle East tensions<\/p>\n
Beyond economic matters, security dimensions featured more\nprominently compared to last year\u2019s retreat, following persistent global\ngeopolitical uncertainty.<\/p>\n
Prabowo and Wong agreed to keep the Malacca Strait and Singapore\nStrait open in accordance with the United Nations Convention on the Law\nof the Sea (UNCLOS) 1982, while maintaining coordination with Malaysia\nand Thailand to secure the waterways against maritime accidents,\npollution, and piracy.<\/p>\n
This agreement comes amid an increasingly volatile global landscape.\nWong explicitly noted that the two leaders discussed developments in the\nMiddle East and their subsequent impact on Singapore, particularly\nregarding the Malacca Strait, given that both neighboring coastal states\nshare a strategic interest in safeguarding the vital shipping lane.<\/p>\n
The discussion reflects a broader recognition, as geopolitical\ntensions in other regions are now being explicitly framed as having a\ndomino effect on shipping lanes that serve as the economic lifeblood for\nboth Indonesia and Singapore.<\/p>\n
On the defense cooperation front, the two nations updated the\nimplementation of their Defense Cooperation Agreement (DCA) and\ndiscussed expanding joint military training areas for the Indonesian\nNational Armed Forces (TNI) and the Singapore Armed Forces (SAF) across\nthree locations: Baturaja (South Sumatra), Siabu (Riau), and West\nKalimantan. The defense ministers of both countries signed the updated\ndefense cooperation documents in the presence of the two leaders.<\/p>\n
Turning to broader issues, Prabowo reaffirmed ASEAN\u2019s stance on\nresolving disputes peacefully through dialogue and diplomacy across all\nregions.<\/p>\n
What set this year\u2019s retreat apart from a mere annual ceremony was\nthe rhetoric chosen by both leaders. Prabowo used phrases like\n\u201cheart-to-heart\u201d and \u201copenly,\u201d emphasizing both parties\u2019 agreement to\nresolve any misunderstandings \u201cas friends.\u201d<\/p>\n
The statements helped ease tensions that recently flared up on social\nmedia when the Indonesian stock market tumbled, pushing the rupiah\nbeyond the psychological threshold of 18,000 per US dollar.<\/p>\n
Amid the economic panic, hashtags like \u201cSell Indonesia\u201d flooded\nsocial media platforms, which were met with a counter-surge of \u201cSell\nSingapore\u201d hashtags.<\/p>\n
Prabowo also recalled that Wong was the first partner country leader\nto visit Indonesia since he took office as president\u2014highlighting the\nimportance of Indonesia-Singapore ties.<\/p>\n
Strengthening people-to-people ties was also highlighted as a\nfoundation no less critical than G2G or B2B achievements. This includes\nthe Garuda High School student exchange program with Singapore, support\nfor increased direct flights following the launch of the new\nSingapore-Pontianak route, and collaboration between youth\norganizations.<\/p>\n
President Prabowo also noted that 2027 will mark the 60th anniversary\nof diplomatic relations between Indonesia and Singapore, making this\nretreat an important milestone ahead of that anniversary.<\/p>\n
The deals\u2019 significance for Indonesia<\/p>\n
The jump from 19 agreements to 26 in one year may signal that\nSingapore\u2014as Indonesia\u2019s strategic trading partner and investor over the\npast decades\u2014views the Prabowo administration as stable and predictable\nenough to further deepen its cooperative exposure. This includes\nsensitive domains such as cross-border electricity trading and access to\nmilitary training grounds in Sumatra and Kalimantan.<\/p>\n
The appointment of Danantara to execute cross-border energy\ncooperation is also worth noting for the future, positioning the state\ninvestment agency as a new hub for Indonesia\u2019s economic diplomacy.<\/p>\n
The effectiveness of this expanded role will become clearer over the\ncoming years. Whether these agreements translate into successful\nimplementation remains to be seen.<\/p>\n
Meanwhile, on the maritime security front<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/growing-trust-indonesia-singapore-ties-reach-new-high-1783446615", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }