Top Investor Singapore Says It Needs Indonesia and Vice Versa
Top Investor Singapore Says It Needs Indonesia and Vice Versa
Jakarta. A minister from Indonesia’s top foreign investor Singapore said Tuesday that his country’s economy depends on Jakarta and vice versa amid a push to step up investment ties.
Singaporean Foreign Minister Vivian Balakrishnan said that bilateral economic relations had been gaining momentum. Balakrishnan, at the time, had freshly stepped out of a closed-door meeting with his Indonesian counterpart Sugiono, whom he had met frequently in recent weeks. At the joint presser, Balakrishnan told reporters that the two nations’ economies “remain mutually reliant”, citing its huge investments and the fact that they are among each other’s biggest trading partners.
“Singapore has been Indonesia’s largest foreign investor for more than a decade. This reflects Singapore’s confidence and belief in the long-term economic strength of Indonesia,” Balakrishnan said.
“It is not just a matter of words – follow the money, and the fact that we are voting with our investments, as an affirmation of Indonesia’s potential.”
Singapore indeed is Indonesia’s number one source of foreign direct investment (FDI). The government reported that FDI inflows from Singapore totaled around $4.6 billion in Q1 2026. Singapore was also Indonesia’s largest source of FDI, aligning with the country’s ambition to shift from raw commodity exports to higher-value manufacturing. Singaporean investment in this massive industrial processing totaled Rp 35.9 trillion or $2 billion between January and March. Bilateral trade neared $7.8 billion over the same period.
The two chief diplomats named the Kendal Industrial Park as an example of flourishing ties. This 2,200-hectare industrial estate is a joint venture between Indonesian property major Jababeka and Singapore’s urban development firm Sembcorp. It is Singapore’s first industrial park in Indonesia outside the traditional Batam-Bintan-Karimun (BBK) region in Riau Islands. Sugiono revealed to the press that he and Balakrishnan had “explored the expansion of sustainable industrial zones”, without going into the technical details.
“This initiative is an economic project, but it’s also an opportunity for both of our countries to provide more jobs for our people, create opportunities, and improve livelihoods,” Sugiono said.
In 2025, both governments sealed a memorandum of understanding (MoU) on creating a sustainable industrial zone in the BBK area. By “sustainable”, they mean attracting investments in renewables and supporting cross-border electricity trade.
Finance Minister Purbaya Yudhi Sadewa had told ambassadors that same day that reforms were now in full swing to make it easier for foreign investors to put their money in Indonesia.
“We are trying to reform everything right now, the best that we can using the current information that we have in our hands,” Purbaya said.
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