Jakarta. Indonesia recently called for stronger cooperation with its close neighbor Singapore particularly in sectors such as investment and tourism.

Chief Economic Affairs Minister Airlangga Hartarto met with Singaporean Trade Minister Gan Kim Yong in Singapore over the weekend. This ministerial meeting took place a day before the leaders’ retreat and zeroed in on six working groups: (1) Batam, Bintan, Karimun (BBK); (2) investment ; (3) manpower; (4) transportation; (5) agribusiness; (6) tourism. 

"The cooperation between Indonesia and Singapore has a significant impact on the economies of both countries and the region, as well as the global economy. That’s why we need to improve it so it remains relevant with the global challenges,” Airlangga was quoted as saying in a recent press statement.

Likewise, Gan Kim Yong that the six working group cooperation must climate and regulations to attract investment. 

"It is important for the governments of both countries to facilitate collaboration between the community and business actors so that they can optimize every opportunity," Gan said.

On the BKK regions, both sides appreciated the policy to encourage ease of visa and the development of Data Centers in the Nongsa Digital Park area. They also acknowledged how important it is to provide the necessary regulatory and infrastructure support for the investors. To this end, the two countries agreed to focus on strengthening infrastructure and industrial services. The regions will also be open for clean energy investments, including energy efficiency, electric vehicles,and green financing. According to the press release, the two ministers also appreciated the significant increase in investment as well as job creation spurred by the Kendal Industrial Park in the Kendal Special Economic Zone. The talks also highlighted the progress in cross-border power trade as well as carbon capture storage.

Both sides also agreed to bolster cooperation in increasing human capital, particularly among the youths. The Tech-talent and Tech:X programs need to continue to be promoted intensively to be more optimal.

For the development of the agribusiness sector, the meeting also discussed initiatives to accelerate collaboration in agricultural technology and create new trade opportunities for Indonesia and Singapore. This initiative is also expected to have a positive impact on the food industries of both countries.

In transportation cooperation, both sides welcomed the increase in air connectivity and emphasized their commitment to deepening business connectivity.

"The opening of new direct flight routes to tourist destinations such as Labuan Bajo will have a real impact on increasing tourist visits and boosting the economy in the surrounding areas," Airlangga said.

The two ministers then also discussed the importance of tourism for the economies of both countries. In 2024, Indonesia was the second largest tourist contributor to Singapore with 2.5 million visitors. Singapore became the third largest source market for tourists for Indonesia with 1.4 million visitors.

Through the twinning destination, cruise and MICE programs, it is hoped that the number of tourist visits from both countries will continue to grow.

"The cruise program will be profitable, with new routes from Singapore to tourist areas and major cities in Indonesia such as Belitung and various other tourist destinations," Airlangga said.