The 2025 Singapore–Indonesia Leaders’ Retreat, held today in Singapore, marked a milestone in the bilateral relationship between the two neighboring nations. This year’s retreat was the first to be hosted under the leadership of Indonesia’s President Prabowo Subianto and Singapore’s Prime Minister Lawrence Wong, signaling a refreshed momentum in regional cooperation and long-term strategic alignment.
Operational Milestones: Expanded Framework Now in Effect
A key focus of the retreat was the review of progress under the Expanded Framework agreements—namely, Defence Cooperation, Flight Information Region (FIR) realignment, and the Extradition Treaty. These agreements, which officially came into force on 21 March 2024, are already demonstrating tangible outcomes.
Joint military training exercises have been enhanced under the defence agreement, while the FIR realignment now includes Indonesian personnel operating within Singapore’s air traffic control system—an important trust-building mechanism. Meanwhile, the extradition treaty is being tested with its first case already in due process, illustrating the operational maturity of legal cooperation.
Strengthening Economic Links
The retreat also highlighted deepening economic ties. A Joint Report from six bilateral working groups showed strong performance in priority sectors such as the Special Economic Zones (SEZs) of Batam, Bintan, and Karimun, as well as investment, labor mobility, transportation, tourism, and agriculture.
Singapore’s foreign direct investment (FDI) into Indonesia reached a record US$20.1 billion in 2024, reinforcing Singapore’s status as Indonesia’s largest investor. This economic collaboration continues to evolve with a forward-looking agenda encompassing sustainability and innovation.
A Greener Economic Future
In line with regional and global decarbonization goals, three new Memorandums of Understanding (MOUs) were signed during the retreat to facilitate cross-border electricity trade, carbon capture and storage (CCS), and the development of sustainable industrial zones.
The retreat also hosted a ceremonial launch for a joint project aimed at supporting ASEAN’s energy transition and progressing the long-envisioned ASEAN Power Grid, a step that underscores the shared commitment to climate action.
Notable Investment Announcements
Several major investment projects were unveiled, showcasing both nations’ ambition to modernize and diversify economic cooperation:
- Ciputra SMG Curie Cancer Centre to be established in Surabaya, expanding healthcare access and medical expertise.
- Sembcorp–Nusantara Solar Plant in Indonesia’s new capital (IKN) to provide renewable energy and support green urban planning.
- Sembcorp–Panbil Joint Venture in Batam for developing low-carbon industrial parks.
- An earlier halal certification mutual recognition MOU, signed in August 2024, is set to boost bilateral halal trade and market confidence.
Finance and Connectivity: Building Bridges Beyond Borders
The retreat also saw the extension of bilateral financial arrangements and reaffirmed initiatives to strengthen stock market and digital financial linkages between Singapore’s Monetary Authority (MAS) and Bank Indonesia. These efforts aim to deepen capital market access and build regional financial resilience.
Food Security and Agri-Tech Cooperation
As food security remains a regional concern, the two leaders oversaw the signing of an MOU on food safety and agricultural technology. A Young Farmers Programme and a new agri-tech exchange initiative were also launched to boost productivity, promote innovation, and enhance climate resilience in the farming sector.
Growing People-to-People Connections
Human capital development and connectivity took center stage, with expanded school partnerships and a new youth mobility programme that will see up to 300 tertiary students participate in yearly internships across both countries. To support this people-to-people flow, new air routes between Singapore and Padang, as well as Kertajati in West Java, were inaugurated.
Government-to-Government Collaboration Deepens
Three bilateral MOUs were renewed to sustain institutional linkages and knowledge exchange:
- Maritime human resource development.
- Cooperation between Attorney-General’s Chambers.
- Library and information management partnerships.
These extensions signal ongoing trust and shared capacity-building objectives across critical governance sectors.
Regional and Global Alignment
President Prabowo and Prime Minister Wong closed the retreat with a firm recommitment to ASEAN centrality and stronger external engagement, voicing clear support for Indonesia’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
