Indonesia and Singapore strengthen ties with key agreements on defense, economy, energy

Indonesian President Prabowo Subianto met with Singapore’s Prime Minister Lawrence Wong at Merdeka Palace in Jakarta on Wednesday.

This first official visit since President Prabowo’s inauguration last month highlighted deepening cooperation on key bilateral and regional issues, including defense, the economy, low-carbon energy, food security, and human resource development. 

Boosting economic ties and market access

As one of Indonesia’s largest trade partners and investors, Singapore plays a pivotal role in Indonesia’s economy. President Prabowo expressed hopes that Singapore would further open its markets to Indonesian products by harmonizing regulations and standards. 

“Singapore is one of Indonesia’s largest trade partners and investors. I hope Singapore can facilitate broader market access for Indonesian products, including through the harmonization of regulations and standards,” said President Prabowo Subianto at the joint press statement. 

Singapore has consistently been Indonesia’s top source of foreign direct investments every year since 2014, with FDI flow into Indonesia exceeding SGD20 billion in 2023. This is according to a release by Singapore’s Ministry of Trade & Industry in June. 

Defense Cooperation Agreement

The leaders discussed defense and legal cooperation as a cornerstone of the bilateral relationship, with a commitment to fully implementing the Defense Cooperation Agreement, first inked in 2007, which includes the regulation of military training areas. 

The Lion City’s lack of sovereign space means that the city-state’s soldiers are starved for training grounds. The DCA allows Singaporean troops to conduct military exercises in Indonesian waters.  

However, Indonesia’s House of Representatives maintained reservations about Singapore, perceiving potential security risks from the country even as Singapore conducted military exercises in Indonesia’s archipelagic waters. Consequently, the DCA was never ratified. 

This effort is expected to enhance stability and defense readiness in the region.  

Low-carbon energy initiatives 

In alignment with global climate goals, Indonesia and Singapore are advancing collaborative projects in low-carbon energy technology. 

“Regarding low-carbon energy technology. The two heads of state discussed ongoing cooperation projects, including cross-border electricity interconnection, joint development of green hydrogen in Sumatra, and solar power plants,” the joint statement said.  

In September, Singapore’s Energy Market Authority announced plans to grant conditional approval to import 1.4 gigawatts (GW) of electricity from two solar power projects in Indonesia. 

EMA additionally announced plans to give conditional approvals to two additional projects to import another 1.4 GW of low-carbon electricity from Indonesia to Singapore.  

“Low-carbon electricity imports are part of Singapore’s overall efforts to decarbonize the power sector, which currently accounts for about 40% of the nation’s carbon emissions,” EMA said in September.  

Advancing food security through technology 

Food security emerged as a priority, with the leaders examining potential collaborations involving technology transfer and expertise exchange.  

Indonesia and Singapore aim to focus on urban agriculture and the establishment of food storage areas or “food estates”. 

President Prabowo emphasized the importance of expediting the memorandum of understanding on food security and agricultural technology, which is expected to support both nations in strengthening food supply chains. 

Unified stance on regional and international concerns 

On regional issues, President Prabowo and Prime Minister Wong reaffirmed their shared goal of maintaining peace and stability. 

“Regarding the Middle East, I express deep concern over the situation in Palestine and Lebanon. I emphasize the importance of continuing to call for an immediate cessation of violence, the unhindered delivery of humanitarian aid, and the achievement of a two-state solution for Palestine and Israel based on international law,” said the Indonesian President.  

“Regarding Myanmar, we agreed to ensure the implementation of the five-point consensus, particularly an inclusive national dialogue and the delivery of humanitarian aid,” explained the President of Indonesia.”

This diplomatic visit signals a strengthened alliance between Indonesia and Singapore, as both countries look to tackle pressing issues collaboratively and drive growth and stability in the region.