The Government of Singapore has pledged an investment of USD9.2 billion to construct a logistics port hub as well as boost green investments in Indonesia. The investment will finance the construction of multiple renewable energy (RE) projects in Batam, Riau Islands, Sumba Island and East Nusa Tenggara province, as well as fund the construction of a logistics hub at the Tanjung Priok port in Jakarta.
The two countries will also boost cooperation for the development and financing of low-carbon infrastructure and increase opportunities for cross-border energy trading. A memorandum of understanding (MoU) on Bilateral Partnership on Green and Circular Economy Development and Energy Cooperation, was signed on January 25, 2022 to formalise the partnership between the two governments.
Additionally, the two countries will also explore opportunities for collaboration in new sectors including sustainability, the digital economy and the green economy among others. Between January and September 2021, the Government of Singapore approved approximately USD7.3 billion in investments in Indonesia, making it one of the country’s main foreign direct investors.