Bilateral trade and investment relations between Singapore and Indonesia are enhanced with the signing of a Strategic Cooperation Agreement between SBF and the Indonesian Chamber of Commerce & Industry (KADIN Indonesia)
- Witnessed by Singapore Prime Minister Lee Hsien Loong and Indonesia President Joko Widodo
28 July 2015 [Singapore] – The strong bilateral economic and business ties between Singapore and Indonesia will be further enhanced with the signing today of a Strategic Cooperation Agreement between SBF and KADIN Indonesia, the first such agreement between two apex chambers in ASEAN. The Agreement, to be inked in the presence of Singapore Prime Minister Lee Hsien Loong and Indonesian President Joko Widodo at the Istana, caps an 11-year partnership since the conclusion of a Memorandum of Understanding between the two chambers in 2004.
This comprehensive agreement establishes a business-to-business platform for promoting Singapore investments into Indonesia. The agreement will help Singapore companies take advantage of business opportunities in Indonesia to:
- Build stronger ties and further enhance collaboration in specific business sectors such as infrastructure, manufacturing and logistics;
- Foster closer relationships between SMEs in Singapore and Indonesia;
- Promote good and sustainable agricultural practices in line with established international guidelines and standards;
- Foster exchange of information regarding economic developments, good trade association management practices and capacity building programmes; and
- Establish appropriate conduits for feedback on the obstacles and challenges impacting the flow of trade and investment between Indonesia and Singapore.
Following the signing of the agreement, President Widodo, who is on a state visit to Singapore, will be the Guest-of-Honour at the Singapore Indonesia Business Dialogue jointly organised by SBF and KADIN Indonesia. Held at Shangri-la Hotel Singapore, the event will see over 150 Singapore business leaders meeting President Widodo to discuss partnership opportunities in an exchange which will be moderated by SBF Chairman Mr S. S. Teo.
Mr S.S. Teo Chairman of SBF, “Today marks an important juncture in our bilateral relationship with KADIN, especially with the timely visit of President Joko Widodo. Over the years, KADIN and SBF have worked closely, and this year, KADIN and SBF have decided to further solidify this relationship. With the world’s fourth largest population and a rising middle class, Indonesia offers many opportunities for businesses from both sides to explore, not only within the growing metropolitan areas, such as Bali, Jakarta, Makassar, Surabaya, but also in the other areas of the archipelago. We look forward to closer collaboration between businesses from both sides, particularly SMEs, in enhancing two-way trade and investment”.
KADIN Indonesia and SBF entered into a collaborative MOU in 2004. Now, I am very pleased that this MOU has been upgraded to a Strategic Cooperation Agreement signed on 28 July 2015 and witnessed by Indonesia President Joko Widodo and Singapore Prime Minister Lee Hsien Loong. The level of commitment of both apex chambers are real and practical and we will work to enhance economic cooperation by forming a Joint Committee to implement the objectives of Strategic Cooperation to provide real supports to all businesses including SMEs" said KADIN Indonesia Chairman, Suryo Bambang Sulisto'. ‘Mr Yukki Nugrahawan Hanafi and Dr Michael Goutama are representatives of KADIN Indonesia in the Joint Committee. We are confident that with the promised support of both governments, this cooperation will quickly bear measureable results. We wish to thank Dr Andri Hadi, Indonesian Ambassador to Singapore, for his valuable supports and cooperation throughout the years'' he added.
Further to the conclusion of the Agreement, SBF will be organising several business missions to Jakarta, Surabaya, Bintan and Batam, as well as thematic industry roundtables to raise the awareness of new and promising business opportunities in the vast Indonesian archipelago of 250 million people.
The Jokowi administration has pledged to revitalise the Indonesian economy, setting a target of 7% GDP growth by 2018. Vital to the economic transformation plans are efforts to improve and develop the maritime, utilities and manufacturing sectors. According to the International Monetary Fund (IMF) and the World Bank, Indonesia, is likely to record a five per cent growth this year. However, the Jokowi administration remains optimistic that the Indonesian economy could grow by 5.2 per cent by year’s end, albeit lower than the 5.7 per cent target in its 2015 revised budget.