Indonesia and Singapore Strengthen Supply Chain Resilience Cooperation
The Indonesian and Singaporean governments have reaffirmed their commitment to strengthening bilateral relations and announced their intention to enhance cooperation in supply chain resilience.
“Singapore and Indonesia have long-standing economic ties, forged through decades of partnership,” stated Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong, according to a statement from Singapore’s Ministry of Trade and Industry on Tuesday.
According to Gan Kim Yong, both nations are working together to build resilient supply chains and create new opportunities in various sectors, such as the digital economy, green economy, industrial infrastructure, and agricultural technology.
This commitment was emphasised by Gan Kim Yong and Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, during the 16th Singapore-Indonesia Bilateral Economic Working Group Ministerial Meeting (6WG MM) in Jakarta on Tuesday.
The 6WG serves as a primary economic platform between Singapore and Indonesia to advance cooperation across six key areas: (i) Batam, Bintan, and Karimun (BBK) and other Special Economic Zones; (ii) investment; (iii) labour; (iv) transport; (v) agribusiness; and (vi) tourism.
During the meeting, both ministers reaffirmed their commitment to strengthening bilateral economic relations amidst global uncertainty. They agreed to strive for enhanced cooperation in supply chain resilience, reflecting a shared commitment to maintaining trade flows even under volatile global conditions.
They discussed opportunities to deepen collaboration between the business communities and expand investment in sectors vital to both economies, including the digital economy, green economy, industrial infrastructure, and agricultural technology.
In the BBK region, both countries are advancing plans to transform the area into a dynamic digital hub, with several ongoing data centre investments. These plans include the expansion of the Nongsa Special Economic Zone (SEZ) and new data centre commitments by DayOne and PT Equint Gate System in Batam, as well as DCI Indonesia in Bintan.
To further enhance cooperation, Singapore and Indonesia will jointly conduct a study on the BBK technology sector to identify future opportunities and develop concrete recommendations to drive growth. Both parties 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, the Kendal Industrial Park (KIP)—a flagship Singapore-Indonesia industrial collaboration—will celebrate its 10th anniversary this November. 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 (SESNA) solar power project, currently under construction and targeted for completion next year, will be one of the largest utility-scale solar projects in Indonesia. The project features a 200 MW solar power installation and an 80 MWh battery energy storage system.
Singapore and Indonesia are also jointly developing Indonesia’s first biogas-to-biometanol pilot project in North Sumatra through the CRecTech-Pertamina biofuel project. Additionally, the Young Farmer Development Programme is set to launch its inaugural programme in June 2026, aimed at deepening Singapore-Indonesia cooperation in agritech.