Coordinating Minister for the Economy Airlangga Hartarto and Singapore’s Senior Minister and Coordinating Minister for National Security Teo Chee Hean met in Jakarta on March 1, 2023, to discuss ways to strengthen digital economic cooperation between the two countries.
Indonesia and Singapore have joined hands to reinforce their digital economy partnership, with a particular focus on advancing their human resources through the implementation of the Tech Talents Program.
“The program that is being discussed by the two countries can be developed for mutual benefit for young technological talents as well as the industries and ecosystems of both countries,” Hartarto said, as quoted by Antara news agency.
He emphasized that improving the quality of human resources would play a vital role in increasing a country’s competitiveness. He also underlined that the government has been fully committed to develop the digital economy through various efforts, such as introducing the ASEAN Digital Economy Framework during Indonesia’s Chairmanship of ASEAN in 2023.
Opportunities in manufacturing
Hartarto and Teo also engaged in talks about the growth of Indonesia’s manufacturing industry, with a particular focus on the automotive sector, in which Indonesia possesses a substantial production capacity and has exported automobiles with significant local content.
Moreover, the Indonesian government is eager to create opportunities for the production of electric vehicles in the automotive sector.
Hartarto stated that Indonesia was actively seeking foreign investments to promote the development of green technology, particularly to achieve its net-zero emissions target by 2060 and create as many employment opportunities as possible within the country.
Bilateral trade, business and investment cooperation
The history of trade, business and investment cooperation between Indonesia and Singapore is a long and fruitful one. It dated back to the early days of Singapore’s independence in 1965 when Indonesia was one of the first countries to recognize the city-state as a sovereign nation.
Since then, the two countries have signed several agreements aimed at boosting trade and investment, including a bilateral investment treaty, an avoidance of double taxation agreement and a free trade agreement. These agreements have created a favorable environment for businesses in both countries to explore opportunities for cooperation and investment.
Singapore’s strategic location at the crossroads of major shipping routes and Indonesia’s vast and resource-rich economy make them natural partners in trade and investment. It is now one of Indonesia’s largest trading partners, with bilateral trade between the two countries amounting to over US$ 50 billion in 2020.
Singaporean companies have invested heavily in Indonesia, particularly in the manufacturing, energy and infrastructure sectors. These investments have helped to create jobs, transfer technology and contribute to Indonesia’s economic development. Conversely, Indonesian companies have also invested in Singapore, particularly in the real estate and hospitality sectors.
The two countries have also cooperated in developing infrastructure projects in Indonesia, such as the Batam-Bintan-Karimun special economic zone and the Kendal Industrial Park. Singaporean companies have also been involved in the construction of the MRT in Jakarta and the Trans-Sumatra Toll Road.
