Indonesia-Singapore Partnership Beyond Trade – OpEd
ASEAN stability needs the Indonesia-Singapore partnership to deepen and move from a transactional to a strategic partnership. For a region beset by a rapidly shifting geopolitical landscape, technology and climate change, both countries have much to work on more effectively and move from a mere trade relationship to a strategic partnership. By virtue of geography, the vital global trade arteries that are the Malacca and Singapore Straits, the investment powerhouse and financial hub of Singapore and the vast market and resources of Indonesia, both countries must work even more effectively to tap on each other’s strengths and deepen their cooperation in sectors that will increase resilience, create jobs and facilitate technology transfer.
However, to enhance the Indonesia-Singapore partnership, the two countries need to move beyond transactional cooperation and establish a more strategic relationship. In terms of maritime security, Indonesia and Singapore should sustain a maritime partnership and convert episodic coordination into ongoing cooperation to reduce burden and enhance ASEAN security architecture. Joint patrols, sharing of intelligence regarding piracy and transnational crimes, as well as a shared maritime domain awareness platform could be created. In addition, regular exercises between coast guards and navies, as well as joining hands in security-related forums, could yield tangible benefits.
To create economic linkage between Indonesia and Singapore that is conducive for growth and resilient to the challenges of the global economic system, it is by focusing on several sectors that have great potential to create jobs, develop human resources, and transfer technology. On this matter, it can be said that Singapore has long been one of the largest investors in Indonesia. In the next stage, focus should be given on sectors that are categorised as green energy, such as solar panels, wind turbines, as well as advanced manufacturing like aerospace, ship building, and automobile, as well as logistics and digital or IT-based industries. Through Batam-Bintan-Karimun and Nusantara that are currently being developed, investment in these sectors can be expedited by giving a facilitative and encouraging regime, public-private partnership, and also by creating a regulatory sandbox. The investment in these sectors is expected to bring higher value and can develop the local economy. Moreover, the two countries also need to work together to create a resilient supply chain by sharing a warehouse, modernising customs, and also by harmonising the critical input standards that are critical.
The digital economy is an area that both Indonesia and Singapore can cooperate to develop new regional norms of artificial intelligence ethics and cybersecurity. Cross-border digital payments can be pilot-tested, innovation labs can be set up to link Singapore’s business accelerators with Indonesia’s startups and large companies, and research with universities and research institutions in Indonesia. Several measures can be taken to develop the talent pool to support this area, such as short-term fellowships, joint degree programs and certification programs, for instance in the areas of data science, cybersecurity, and digital policy.
As mentioned before, both countries face many environmental challenges, some of which are cross-border in nature. To this end, both countries need to work on a sustained basis on issues such as haze, climate change, rising sea levels, and extreme weather. Green shipping corridors, co-financed renewable energy projects, and carbon-market linkages could translate climate-change ambition into economic gains. Joint efforts to tackle these issues and their impact on local communities would also help to decrease the current tensions and rivalries that exist between the two countries.
People-to-people relations are critical for building strategic trust between the two countries. More scholarships for studies and vocational training, as well as professional secondments in public administration, urban planning, health systems, and other areas, would foster a better understanding of Indonesia and Singapore and build practical capabilities. Cultural diplomacy, youth leadership programs, arts residencies, and other programs that promote people-to-people relations and increase understanding and exposure between Indonesia and Singapore would reduce prejudices and stereotypes, create positive social capital and enable both countries’ citizens to solve problems together and work towards common goals and shared interests.
To sustain the momentum of the current cooperation, the two governments should establish stronger institutions and financing to support the partnership. Annual Leaders’ Retreats should be reinforced by the establishment of a standing Indonesia-Singapore Future Cooperation Council that focuses on three main areas of cooperation in digital, green, and maritime sectors. Interministerial working groups with private sector co-chairs should be established to support the implementation of the agreed cooperation. These working groups can help address sectoral and regulatory issues and remove bottlenecks in implementation. A range of blended finance vehicles and green bonds should be established to spread risk and attract private sector funding. Regular public reporting on the implementation of cooperation is also important to sustain domestic support.
In addition to these challenges of investment sensitivities in Indonesia, of sectoral competition, and of regulatory complexity, major powers are also pressuring both countries to develop closer cooperation. The two governments of Indonesia and Singapore should continue to communicate closely and to work on projects step by step. The most important thing is that, while cooperating, each country protects its own development priorities. Many things can be done, starting with aligning both countries’ security with their shared maritime interests, investing in green sectors and high-technology sectors, and co-governing the digital economy. With a focus on developing institutions and human capital, Indonesia and Singapore can work towards building a model of cooperation that can be sustained in the long term, and that can serve as a model of resilient cooperation in the Indo-Pacific.
The opinions expressed in this article are the author’s own.
References
- OECD. (2026). Digital Trade Review of the Association of Southeast Asian Nations. OECD Publishing. https://doi.org/10.1787/abd6f44a-en
- Hartarto, A. (2026, June 9). Indonesia and Singapore deepen investment and green energy ties. ANTARA News
