Singapore and Indonesia have cemented a new era of bilateral relations by signing 19 major agreements across diverse sectors during a highly productive Leaders’ Retreat, marking President Prabowo Subianto’s first official state visit to Singapore since taking office.

Prime Minister Lawrence Wong opened the joint press conference by emphasizing the strength of bilateral ties, stating, Singapore-Indonesia relations are in excellent shape, and we want to chart even stronger ties in this new era of cooperation.

“This retreat is a platform reserved for Singapore’s “two closest neighbors, “ he said in a joint press conference on Monday, June 16, 2025, showcasing a relationship built on “comfort and trust at the highest levels”.

Among the most significant outcomes of the retreat were three Memorandums of Understanding (MoUs) in green economy, namely Cross-border electricity trade; Carbon capture and storage; and Development of sustainable industrial zones.

“This milestone reflects our shared commitment to realizing our green and sustainability goals,” Prime Minister Wong said.

“Working together, we can help ourselves, help each other, and help the world,” he added.

President Prabowo echoed this sentiment, reaffirming his support for renewable energy cooperation, particularly in Batam, Bintan, and Karimun, and hailed the MoUs as pivotal for job creation, economic development, and decarbonization. The two leaders later participated in a symbolic lighting ceremony, marking the start of project implementation.

Strategic and defence framework

The two leaders reaffirmed implementation of their Expanded Framework Agreements, which came into force last year. These span defense cooperation, airspace management, and law enforcement:

* A joint defence update was signed.

* The Flight Information Region Agreement is in full effect, with Indonesian personnel now working at Singapore’s aviation authority.

* The Extradition Treaty has progressed to its first case before Singapore courts − a development made possible by “close collaboration between legal and law enforcement agencies”.

President Prabowo described the cooperation as “a strategic political design to foster the best collaboration with Singapore, one of our closest neighbors,” affirming commitment to fast-track all pending technical details for military training areas.

Trade, finance and investment

Singapore remains Indonesia’s top investor, contributing over one-third of all realized foreign investment in 2024.

“This reflects the confidence we have in Indonesia’s economy and its potential,” Prime Minister Wong noted.

To bolster financial resilience, Monetary Authority of Singapore (MAS) and Bank Indonesia renewed their bilateral financial arrangement for the first time over a three-year term, a step up from previous annual renewals.

President Prabowo welcomed the deepening investment ties, especially between Temasek and Indonesia’s new sovereign wealth fund, Danantara, which he said was “built for the future generation of Indonesia” and modeled proudly on Singapore’s Temasek.

Agriculture, manpower and connectivity

Several additional MoUs and agreements were announced:

* A new MoU on food safety and agricultural technology, supporting Indonesia’s food security and urban farming modernization.

* Cooperation in healthcare and nursing education, with Singapore invited to participate in Indonesia’s healthcare transformation.

* Progress on manpower placement, including opportunities for skilled caregivers from Indonesia.

* Improved air connectivity, with new flight routes and commitments to open more Indonesian airports to foreign airlines.

Cultural and personal ties

President Prabowo struck a deeply personal note, expressing gratitude for the orchid naming ceremony in honor of his late mother, calling it “a very touching gesture” and jokingly adding that such diplomacy might be “copied with pride” by Indonesia.

He reminisced about his boyhood years in Singapore and praised its leadership for inspiring many of his administration’s own best practices, including in housing and sovereign wealth management.

Both leaders underscored the importance of people-to-people exchanges, including youth internships, education, and cultural understanding. “They will gain valuable overseas experience and bring back friendships that last a lifetime,” Wong said.

Regional and global vision

On geopolitical issues, both leaders reaffirmed their commitment to ASEAN and a rules-based multilateral system. They jointly expressed concern over the conflict in Gaza and rising tensions between Israel and Iran, calling for a peaceful resolution and immediate ceasefire.

They also pledged continued efforts toward a peaceful outcome in Myanmar, signaling Indonesia and Singapore’s united front in regional diplomacy.

As the retreat concluded, President Prabowo declared it “very productive and very successful,” expressing confidence that the relationship “will continue to grow from strength to strength.”

He invited Prime Minister Wong to the next Leaders’ Retreat in Indonesia, promising that both nations “will stand shoulder-to-shoulder as partners” for decades to come