MFA Press Statement: Singapore-Indonesia Leaders’ Retreat in Bogor, Indonesia on 13 March 2012

1 Prime Minister Lee Hsien Loong and Indonesian President Susilo Bambang Yudhoyono met in Bogor, Indonesia on 13 March 2012 for the Singapore-Indonesia Leaders' Retreat. The Leaders expressed satisfaction with the positive state of bilateral relations and reaffirmed their commitment to strengthening cooperation further.

2 Prime Minister Lee and President Yudhoyono noted the good progress made by the seven Working Groups that were established at the May 2010 Retreat to further cooperation in the areas of (i) Batam, Bintan and Karimun (BBK) and other Special Economic Zones (SEZs); (ii) Investments; (iii) Tourism; (iv) Air Connectivity; (v) Manpower; (vi) Agri-business; and (vii) Counter-Terrorism Cooperation. Minister for Trade and Industry Lim Hng Kiang and Indonesian Coordinating Minister for the Economy Hatta Rajasa, who oversee the six economic Working Groups, briefed the Leaders on the work of the six economic Working Groups. The Leaders also welcomed the progress on the Counter-Terrorism Cooperation Working Group which will focus on sharing knowledge and best practices to combat terrorism.

3 The Leaders agreed that both countries should deepen economic cooperation. In particular, they agreed to build on the longstanding collaboration in the Batam, Bintan and Karimun (BBK) Special Economic Zones (SEZs) to leverage on the strong complementarities between the two economies. In this regard, the Leaders tasked the Working Group on BBK and other SEZs to look into issues that will help enhance the competitiveness of the BBK SEZs.

4 The Leaders also noted the strong investment links between Singapore and Indonesia. Singapore has been the top foreign investor into Indonesia for three consecutive years, with investments amounting to US$5.1 billion in 2011. The Leaders welcomed the work done by the Working Group on Investments to facilitate increased investment flows between the two countries. Prime Minister Lee welcomed the relevant Indonesian agencies to engage Singapore's private sector on Indonesia's Master Plan for the Acceleration and Expansion of Indonesia's Economic Development (MP3EI).

5 The Leaders also encouraged the Working Group on Air Connectivity to come to a win-win outcome on the expansion of air services between the two countries. Freeing up more air rights by both sides will generate greater economic benefits for both countries. In addition to boosting tourism and increasing connectivity between Singapore and various parts of Indonesia, this will create more business, trade and investment opportunities.

6 In addition, the Leaders had a general discussion on regional and international issues, in particular strengthening cooperation in ASEAN. Prime Minister Lee congratulated President Yudhoyono on Indonesia's effective and successful ASEAN Chairmanship in 2011.

7 Prime Minister Lee and President Yudhoyono also witnessed the signing of two new Memoranda of Understanding (MOUs). Singapore's Civil Service College and Indonesia's National Institute of Public Administration (LAN) signed an MOU on the capacity building of public officials. The MOU was signed by Singapore's Minister for Foreign Affairs and Minister for Law K Shanmugam and Indonesia's Minister for Administrative and Bureaucratic Reform Azwar Abubakar. This MOU will encourage and promote cooperation in the capacity building of public officials through exchanges and other joint activities, in areas such as public governance and leadership, public administration, and public service development. Singapore's Ministry of Education and Indonesia's Ministry of Education and Culture signed an MOU on education cooperation. The MOU, signed by Minister Shanmugam and Indonesia's Minister of Education and Culture Mohammad Nuh, focuses on student exchange programmes with the aim of building stronger bonds between the youth of both countries. The Leaders also welcomed the renewal of a 1988 MOU on youth and sports cooperation by Singapore's Ministry of Community Development, Youth and Sports and Indonesia's Ministry of Youth and Sports Affairs. Such initiatives are important to strengthen our people-to-people links.

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MINISTRY OF FOREIGN AFFAIRS
SINGAPORE
13 MARCH 2012