Singapore, Indonesia plan study to create digital hub

Singapore’s Ministry of Trade and Industry said the park will expand by an additional 1,000ha under its second phase of development, which is aimed at attracting more investment, creating jobs and supporting economic growth in Central Java.

The expansion comes as Indonesia seeks to strengthen its manufacturing base and move further up global value chains, while Singapore companies continue to look for opportunities in South-east Asia’s largest economy.

Another area of growing collaboration is the BBK region, which both sides are positioning as a digital and technology hub.

Several data centre projects are already under way, including the expansion of Nongsa Special Economic Zone in Batam and new investments by data centre operators DayOne and PT Equator Gate System in Batam, as well as DCI Indonesia in Bintan.

The study that Singapore and Indonesia will jointly commission will help to develop recommendations to attract more investment.

Cooperation in the green economy is being stepped up as well.

Among the projects highlighted is a partnership between Singapore’s Sembcorp and Indonesian firm PT Sumber Energi Surya Nusantara (SESNA) to develop a solar facility featuring a 200 megawatt solar installation and an 80 megawatt-hour battery energy storage system.

Once completed, the project is expected to be among Indonesia’s largest utility-scale solar developments.

The two countries are also collaborating on Indonesia’s first biogas-to-biomethanol pilot project in North Sumatra, through a partnership involving Singapore-based CRecTech and Indonesian state energy company Pertamina.

In the agriculture sector, the inaugural Young Farmers Development Programme will begin later in June. The initiative aims to strengthen collaboration in agritech and help develop a new generation of farmers equipped with modern agricultural skills.

Under the programme, 13 high-potential young Indonesian farmers and two Indonesian Agriculture Ministry officials will undergo a week-long training programme in Singapore, where they will be exposed to agricultural best practices and agritech innovations.

Speaking to reporters after the talks, Gan was asked about Indonesia’s plans to centralise all strategic commodity exports under a new state-controlled entity.

The plan, announced by Indonesian President Prabowo Subianto on May 20, will see a new state entity take charge of overseas sales of coal, palm oil and ferroalloys, and may expand to other strategic natural resources.

Every country has its own concerns and priorities, said Gan, adding that Singapore will work together with Indonesia to ensure it continues to be an attractive investment destination for Singapore and its investors.

In 2025, Singapore remained Indonesia’s top source of foreign direct investment, with a contribution of US$17.4 billion (S$22.4 billion).

“We will continue to also work with Singapore businessmen, to find a way to work with Indonesia, to make sure there are exports to Indonesia, and our access to Indonesia’s exports will continue to flow freely,” Gan said.

Responding to a question about Indonesia’s plans to establish an international financial centre in Bali, Gan said that strong financial hubs would benefit both countries and the wider region.

Indonesia has in recent months stepped up efforts to develop the Kura Kura Bali Special Economic Zone in Serangan, Bali, into an international financial centre.

“We look forward to working with Indonesia to develop the financial centres, both in Indonesia and in Singapore. Singapore is a very small, open country. Our economy depends on the economy of the region,” said Gan.

“When the region is able to do well, Singapore’s economy will do well. It is also in our interest to make sure that Indonesia has a very strong financial centre and very strong economic fundamentals.”