Jakarta, INTI - Indonesia and Singapore have reaffirmed their commitment to strengthening bilateral economic cooperation through various strategic working groups. The progress of this collaboration was highlighted during the 16th Ministerial Meeting of the Six Working Groups (6WG) Bilateral Economic Cooperation Indonesia–Singapore, held at the Indonesian Coordinating Ministry for Economic Affairs.
The meeting was led by Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, and Singapore’s Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong. Discussions covered six key working groups, including Batam, Bintan, Karimun (BBK) and Special Economic Zones (SEZs), investment, transportation, agribusiness, tourism, and manpower.
Under the theme “Partnership for Growth: Industry, Green Transition, and Agri-Tech,” both countries focused on strengthening collaboration in industrial development, digital economy, energy transition, food security, and human capital development.
SEZs Become Key Drivers of Digital and Industrial Growth
Airlangga stated that Indonesia–Singapore economic ties remain strong and increasingly important in addressing global economic challenges. The complementary partnership is reflected in strategic investments across several Special Economic Zones (SEZs), including Nongsa Digital Park, Kendal SEZ, Galang Batang SEZ, Tanjung Sauh SEZ, as well as emerging SEZ initiatives in healthcare and education.
In 2025, investment in the BBK region reached USD 5.7 billion, marking an increase compared to the previous year. Looking ahead, Nongsa Digital Park will continue to expand to support Indonesia’s digital economy, while Kendal SEZ is planned to grow with an additional 1,000 hectares of development area.
During the BBK and SEZ discussions, both countries highlighted the rapid growth of the digital economy and the data center industry in the BBK region. Several data center investments in Batam, including DayOne, Golden Digital Gateway, BW Digital, Princeton Digital Group, Racks Central, and DCI Indonesia, continue to expand, supported by the Singapore–Batam subsea cable project that strengthens regional digital connectivity.
Airlangga emphasized the importance of land availability, green energy supply, and clear regulations regarding data protection and cross-border data flows to support growing digital investments. This progress positions Nongsa Digital Park as a strategic regional data center hub, supported by strong digital infrastructure, international connectivity, supportive regulations, and a growing digital talent ecosystem.
Strengthening Investment and Future Digital Ecosystem
Gan Kim Yong emphasized that Indonesia and Singapore continue to enhance cooperation in strategic areas, including improving supply chain resilience and facilitating smoother cross-border business activities to maintain a competitive investment environment.
Singapore’s investment commitment in Indonesia remains strong, with Foreign Direct Investment (FDI) reaching approximately USD 17.4 billion in 2025. Singapore reaffirmed its commitment to remain a trusted and valuable partner in supporting Indonesia’s long-term economic development.
The meeting highlighted the increasingly strategic role of SEZs in Indonesia–Singapore cooperation, extending beyond industry and digital economy into sectors such as healthcare and tourism. As part of the 2026 cooperation agenda, both countries will prepare the BBK Tech Sector Study, which is expected to serve as a strategic reference for future digital SEZ development.
Moving forward, Special Economic Zones will continue to serve as key platforms for attracting high-quality investments, creating employment opportunities, accelerating digital transformation, and supporting Indonesia’s priority economic sectors.
Conclusion
The strengthening of Indonesia–Singapore cooperation through Special Economic Zones (SEZs) marks a significant step toward advancing the digital economy, industrial development, and sustainable investment in the region. With growing investments in digital infrastructure, data centers, green energy, and strategic industries, the partnership is expected to enhance regional competitiveness, create new economic opportunities, and support Indonesia’s long-term transformation into a leading digital and industrial hub.
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