Singapore and Indonesia forge investment treaty

The city-state's investment deals in Indonesia hit $11.61b in 2017.

Singapore and Indonesia inked the Bilateral Investment Treaty (BIT) to safeguard investors’ interests and reinforce the strong economic ties and cooperation between the countries, an announcement revealed.

In 2017, Singapore was Indonesia’s top investor with deals hitting $11.61b (US$8.4b).

The BIT also establishes rules on how Indonesia should treat investments and investors from Singapore and vice-versa.

Through the deal, Singapore firms operating in Indonesia will enjoy protection and have access to international arbitration in the event of investment disputes. This will likewise be enjoyed by Indonesian companies operating in Singapore.

“The signing of this BIT can boost the confidence of investors venturing into Indonesia, leading to greater trade and investment flows between our two countries,” trade and industry minister Chan Chun Sing said.

Singapore’s trade with Indonesia totalled $59.4b in 2017, rounding up the Lion City as Indonesia’s third largest trading partner after China and Japan.

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