Singapore investment in Indonesia rises 38%

September 23, 2018

Singapore's investment value in Indonesia in the first half of 2018 was recorded at 5.04 billion US dollars (US) or up 38% compared to the same period in 2017.

"Over the past 50 years, bilateral relations (Indonesia-Singapore-Red) have been well established, especially through increasing trade and investment volumes," Minister of Industry (Menperin), Airlangga Hartarto, said in a press release in Jakarta on Sunday (9/23). As for 2017, the investment from the Lion State reached 8.44 billion US dollars.

For Indonesia's non-oil and gas export value to Singapore in 2017, it has penetrated 9 billion US dollars, which makes the neighboring country the fifth largest export destination. According to Airlangga, recently it has also actively attracted Singapore investors to the Kendal Industrial Area (KIK), Central Java (Central Java).

"Currently, we already have more than 43 tenants in KIK. Furthermore, we are focusing on developing furniture polytechnics in the region, "he said. He explained, the construction of KIK was the result of cooperation between Indonesian investors and Singapore.

The first integrated industrial area in Central Java is projected to absorb investment potential of Rp 200 trillion. In the first phase, the area to be cultivated is 1,000 hectares (ha) with a target of 300 tenants and absorbs as many as 500 thousand workers until 2025.

Three stages

"To become an integrated industrial area, the development of KIK is planned for three stages with a total area of ​​2,700 hectares. This area will be supported by the development of industrial zones, ports, fashion cities and settlements, "said Airlangga.

In addition, he continued, the two countries agreed to strengthen cooperation in the field of vocational education, especially to fill the needs in the industrial sector.

"Teachers and lecturers from Indonesia have been sent to participate in vocational training programs in Singapore, such as in the field of machinery, power generation and industrial automation techniques," he explained

On the same occasion, the Indonesian Ambassador to Singapore, Ngurah Swajaya said that the potential for collaboration between Indonesia and Singapore in the future would be established in the digital economy along with the onset of the industrial revolution era 4.0.

"One of the priorities is the development of Nongsa Digital Park in Batam as a concrete manifestation of the agreement of the two heads of government to make Batam a Singapore digital bridge to Indonesia," he explained.

The meeting also discussed about the preparation of leaders retreat that will be held in Bali on October 11, 2018. (sb, ant-46)