Singapore Views Indonesia as a Promising Investment Destination

The Singapore government considers Indonesia’s long-term economic fundamentals to be strong and attractive to businesses, even as domestic financial markets have recently experienced volatility. The statement was affirmed by Singapore’s Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, in a written statement from the Singapore Embassy in Jakarta, when responding to the prospects for market attractiveness and the sustainability of investment flows into Indonesia amid global economic dynamics. “Singaporean entrepreneurs continue to have a strong interest in Indonesia. I think we can continue to see investment flowing into Indonesia,” Yong said during a joint press conference with Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, in Jakarta on Tuesday. “In the long term, Indonesia’s fundamentals remain very strong, very attractive, as a place with many resources, a large workforce, and many opportunities,” he stated following the 16th Singapore-Indonesia Six Bilateral Economic Working Group Ministerial Meeting. Yong did not deny that Indonesia, like many other countries in the world, will continue to face periodic challenges due to global economic dynamics. However, he expressed optimism that the future of cooperation between the two countries will remain promising if challenges are met with solid collaboration. He noted that the realisation of Singaporean investment into Indonesia continues to show a strong trend, with foreign direct investment contributions reaching approximately US$17.4 billion (Rp314.9 trillion). In the investment sector, the two countries discussed strategic measures to facilitate and simplify business operations to maintain the attractiveness of the investment climate for investors. One main focus is the transformation of the Batam, Bintan, and Karimun (BBK) area into a dynamic digital hub. Singapore and Indonesia will jointly conduct a technology sector study to identify new opportunities and formulate concrete recommendations for the future development of BBK. Furthermore, a flagship cooperation project, the Kendal Industrial Park (KIP) in Central Java, is set to be significantly expanded. With a land expansion of up to 1,000 hectares, KIP is projected to attract new investment, create jobs, and spur economic growth in Central Java. In the energy sector, a utility-scale solar power plant project resulting from collaboration between Sembcorp and PT Sumber Energi Surya Nusantara (SESNA) has now entered the construction phase. The project, with a capacity of 200 MW and equipped with an 80 MWh battery energy storage facility, is targeted for completion next year. Additionally, Indonesia’s first biogas-to-biomethanol pilot project is being developed in North Sumatra through a partnership between CRecTech and Pertamina. Meanwhile, in the field of agricultural technology, the two countries initiated the first implementation of the Young Farmers Development Programme in Singapore to deepen collaboration in this sector. “Overall, the outcomes of today’s meeting reflect a partnership that evolves over time—a partnership that is responsive to new challenges and grounded in a shared vision to create a growing, resilient, and sustainable region,” Yong said.