PUBLISHED ONJuly 06, 2026 10:44 AMBYSean LerThe partnership between Singapore and Indonesia is deep, and the two countries are trusted partners with a shared stake in one another, said Prime Minister Lawrence Wong on Monday (July 6).
Speaking at a joint press conference with Indonesia President Prabowo Subianto at the Istana Merdeka, PM Wong also underscored Singapore's confidence in Indonesia's future, reiterating that the city-state has been investing consistently in Indonesia over many years.
"We want Indonesia to succeed, because our futures are closely linked, and our confidence in Indonesia is reflected in our actions," he said.
Since 2014, Singapore has consistently been Indonesia's largest source of foreign direct investment (FDI). Last year, FDI from Singapore to Indonesia amounted to US$17.4 billion (S$22.4 billion).
The two leaders witnessed the exchange of 18 agreements spanning areas such as carbon credits collaboration, defence cooperation, and energy collaboration, after holding their annual Singapore-Indonesia Leaders' Retreat.
@asiaone Speaking at the joint press conference after his meeting with Indonesia President Prabowo Subianto, PM Lawrence Wong pointed to the "deep" partnership between the two countries, adding that it is "full of potential", and that more opportunities can be created together. #sgnews #Singapore #Indonesia ♬ original sound - AsiaOne
Under the memorandum of understanding for collaboration on carbon credits, Singapore and Indonesia agree to work together on carbon markets that accelerate climate action.
In a statement by the Ministry of Trade and Industry (MTI) after the leaders' meeting, the ministry said the two countries will exchange information and technical expertise on carbon markets and work towards an implementation agreement aligned with the Paris Agreement.
They will also identify high-integrity carbon credit projects which can support the two countries' achievement of their respective nationally determined contributions, and provide tangible benefits for local and indigenous communities in Indonesia such as job creation, and income and environmental protection, MTI added.
In its submission before the February 2025 deadline, Singapore committed to reducing emissions to between 45 and 50 million tonnes of carbon dioxide by 2035.
Singapore and Indonesia also committed to strengthening supply chain resilience, which PM Wong said will allow the two countries to better support each other when navigating external shocks.
In a joint statement by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong and his Indonesian counterpart Airlangga Hartarto, the two countries reaffirmed the importance of upholding freedom of navigation in straits used for international navigation, such as the Strait of Hormuz, and the Straits of Singapore and Malacca.
The two countries also reinforced the Association of Southeast Asian Nations' (Asean) commitment to strengthening intra-Asean trade and supply chain connectivity through improved trade facilitation and reduced logistical costs.
This includes working towards the ratification of relevant Asean agreements such as the Asean Framework Agreement on Petroleum Security and the upgraded Asean Trade in Goods Agreement.
"In the face of heightened global uncertainty, we remain resolute in our commitment to work together in solidarity to uphold regional stability, strengthen economic resilience, and promote an open, rules-based international order," the two ministries said in their joint statement.
Another area of cooperation is in defence, where the two leaders stated that good relations between the Singapore and Indonesian armed forces can help foster trust between the two countries.
PM Wong said the two armed forces are exploring the co-development of training facilities in Bathuraja, West Kalimantan, and the Siagu Air Weapons Range.
"These initiatives will provide even more mutually beneficial opportunities for us to train together and deepen our longstanding defence relations," he added.
In closing, PM Wong noted the potential of the two countries' partnership ahead of the 60th year of diplomatic relations in 2027.
"Singapore and Indonesia are trusted partners, trusted partners with a shared state in one another.
"Our partnership is deep. It's forward looking and full of potential, and together we can create more opportunities than either of us could achieve alone," he added.
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