Singapore and Indonesia: Growing together with closer business partnerships
Sunday, 2 February 2020 [Singapore] – Enterprise Singapore (ESG) and the Singapore Business Federation (SBF) look forward to expanding partnerships with Indonesia companies in priority sectors of manufacturing, infrastructure, digital economy, and consumer services. In partnership with ESG, SBF will be leading a business mission to Jakarta during Singapore President’s Halimah Yacob’s State Visit to Indonesia. The delegates will meet with senior Indonesian government officials and discuss business opportunities with a focus on infrastructure and manufacturing opportunities.
ESG and Indonesia’s Ministry of Industry (MOI) have signed a Memorandum of Understanding (MOU) in 2018 to strengthen collaborative partnerships between Indonesian manufacturers and Singapore manufacturing innovation enablers. As part of the MOU, ESG has been engaging Indonesian manufacturers to understand their digital transformation needs and has helped facilitate partnerships with Singapore Industry 4.0 technology (I4.0) technology providers. Singapore startups and SMEs in automation, artificial intelligence (AI), robotics and internet-of-things (IoT) technology can look forward to more business opportunities as more Indonesia’s manufacturers adopt I4.0.1
In the area of infrastructure, there is also a growing demand across Indonesia in areas such as transportation, utilities and sanitation. In addition, the rise of technology opens up opportunities for smart city solutions such as the development of e-government platforms, intelligent transportation and smart street lighting. In this regard, ESG and SBF have led mission trips and introduced Singapore companies to regional governments in Indonesia to share our companies’ competencies and discuss potential areas of collaboration.
Mr Tan Soon Kim, Assistant Chief Executive, ESG, said, “Transforming the industrial sector and infrastructure development are longstanding, developmental objectives which Singapore companies can play a part in. Indonesia’s push for manufacturers to be I4.0-ready presents opportunities for Singapore I4.0 solution providers. ESG actively facilitates engagement between Singapore solution providers and Indonesian manufacturers to tap on the potential of the Indonesian market. Additionally, Indonesia’s focus on infrastructure development will help promote growth and facilitate greater connectivity in the region. We can partner Indonesia in their growth journey by sharing our experience in structuring sustainable infrastructure projects, urban planning and utilities management.”
Mr SS Teo, Chairman, SBF, said, “As Southeast Asia’s largest economy, Indonesia has always been among the top markets of interest for Singapore companies looking to expand overseas. The strong participation by our Singapore businesses is also a good reflection of the positive interest from our companies to explore the potential of the Indonesian market, given its strong fundamentals and large market of growing middle-class. We hope our companies can successfully tap on the opportunities brought about by Indonesia’s focus on infrastructure and human capital development. Singapore and Indonesia are part of the ASEAN Free Trade Area, and have a double tax agreement which provides relief from double taxation in the situation where income is subject to tax in both countries. These agreements not only increase trade and investment flows but also provide greater incentive for our companies to expand into ASEAN.”
1 For further information on Indonesia’s priority sectors, please refer to https://www.enterprisesg.gov.sg/overseas-markets/asia-pacific/indonesia/profiled-industries
Annex A: SBF’s business programme in Jakarta
Annex B: Latest bilateral trade information between Indonesia and Singapore
Annex C: Companies available for media interviews