Indonesia and Singapore Strengthen Supply Chain Resilience Cooperation
The Governments of Indonesia and Singapore have reaffirmed their commitment to strengthening bilateral relations and announced their intention to enhance cooperation on supply chain resilience. Singapore and Indonesia share an economic relationship that has been forged over decades of partnership, said Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong on Tuesday. He noted that both countries are working together to build robust supply chains and create new opportunities in areas such as the digital economy, green economy, industrial infrastructure, and agricultural technology. The commitment was affirmed by Gan Kim Yong and Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto at the 16th Singapore-Indonesia Six Bilateral Economic Working Groups Ministerial Meeting in Jakarta. The 6WG meeting is the primary economic platform between Singapore and Indonesia to advance economic cooperation in six areas: Batam, Bintan and Karimun and other Special Economic Zones; investment; manpower; transport; agribusiness; and tourism. At the meeting, the two ministers reaffirmed their commitment to strengthening bilateral economic relations between Singapore and Indonesia amid global uncertainties. They agreed to work towards enhancing cooperation on supply chain resilience, reflecting a shared commitment by both countries to maintain trade flows even in volatile global conditions. They discussed opportunities to deepen business collaboration and expand investment in sectors crucial to both economies, including the digital economy, green economy, industrial infrastructure, and agricultural technology. In the Batam, Bintan and Karimun region, both nations are advancing plans to transform the area into a vibrant digital hub, with various data centre investments underway. These plans include the expansion of the Nongsa Special Economic Zone and new data centre commitments by DayOne and PT Equator Gate System in Batam, and DCI Indonesia in Bintan. To further enhance cooperation, Singapore and Indonesia will jointly conduct a study on the technology sector in the Batam, Bintan and Karimun region to identify future opportunities and develop concrete recommendations to drive growth. Both sides also reaffirmed the importance of maintaining a conducive and stable business environment to support long-term investor confidence and sustainable growth. Regarding cross-border investment, Kendal Industrial Park, a flagship Singapore-Indonesia industrial collaboration, will celebrate its 10th anniversary in November this year. Kendal is expanding by an additional 1,000 hectares in its Phase 2 development to catalyse investment, job creation, and economic growth in Central Java. In the green economy sector, Singaporean and Indonesian companies are also deepening cooperation in several areas of mutual interest. The Sembcorp-PT Sumber Energi Surya Nusantara solar power plant project, currently under construction and targeted for completion next year, will be one of the largest utility-scale solar power projects in Indonesia, featuring a 200 MW solar power installation and an 80 MWh battery energy storage system. Singapore and Indonesia are also jointly developing the first biogas-to-biomethanol pilot project in Indonesia in North Sumatra through the CRecTech-Pertamina biofuel project. The Young Farmers Development Programme will also commence its inaugural programme in June 2026 to deepen Singapore and Indonesia’s cooperation in agri-tech.