During the Singapore-Indonesia Leaders’ Retreat on April 29, 2024, in Bogor, Prime Minister Lee Hsien Loong and outgoing Indonesian President Joko Widodo discussed enhancing collaboration on green economy initiatives, including investments in Indonesia’s new capital, Nusantara.

This marks PM Lee’s seventh and final retreat with President Widodo, as Indonesia prepares for a leadership transition. Deputy Prime Minister Lawrence Wong will take over as Singapore’s prime minister on May 15, while Indonesian Defence Minister Prabowo Subianto will assume the presidency in October following his recent electoral victory.

The leaders explored various avenues for future cooperation, such as cross-border electricity trading, clean energy generation, carbon capture and storage, and carbon credit initiatives. PM Lee suggested that the Indonesian state utility company, PLN, and Singapore’s SP Group could collaborate on establishing power cables to facilitate electricity trading.

In September 2023, Singapore and Indonesia signed an agreement allowing the import of 2 gigawatts of low-carbon electricity from Indonesia. Widodo mentioned that 29 Singaporean companies have shown interest in investing in Nusantara, which is set to be developed as a green capital city.

Among these companies is Sembcorp Industries, which has partnered with PLN to establish a large-scale integrated solar project in Nusantara. Widodo expressed optimism about the development of solar power projects in the new capital.

At the retreat, PM Lee emphasized Singapore’s eagerness for Indonesia to lead the growth of Southeast Asia’s green economy, a sector both leaders acknowledged has significant potential for their nations.

Additionally, a memorandum of understanding was signed to collaborate on community empowerment activities related to mangrove ecosystems in Indonesia.

“Indonesia is our biggest neighbor and one of our closest. We have a lot of to-ing and fro-ing with them,” PM Lee remarked. He noted the progress made over the past two decades in maintaining a strong bilateral relationship, resolving issues, and pursuing successful cooperation projects.

Economic ties have been a cornerstone of Singapore-Indonesia relations, with Singapore being the top foreign investor in Indonesia since 2014, cumulatively exceeding S$74 billion in investments.

The Ministry of Foreign Affairs announced the extension of a bilateral financing agreement for the fifth time, aimed at maintaining monetary stability amid economic uncertainties.

The retreat also addressed other areas of collaboration, including the digital economy and defense. A new pilot program, TechX, was launched, allowing young tech professionals from both countries to gain experience in each other’s tech ecosystems.

PM Lee reflected on the progress made in resolving longstanding issues, such as airspace management and defense cooperation, under an expanded framework initiated in March 2024. He expressed confidence that this strong partnership would continue with the incoming leaders.

This leaders’ retreat was PM Lee’s last overseas visit before his transition to Deputy Prime Minister Lawrence Wong, and it holds significant importance given the longstanding ties between Singapore and Indonesia.