Singapore-Indonesia investment treaty takes full effect

Singapore is Indonesia's top source of foreign direct investments.

The Singapore-Indonesia bilateral investment treaty (BIT) takes full effect, announced ministers from both countries.

Singapore's Minister for Trade and Industry Chan Chun Sing and Indonesia's Minister for Foreign Affairs Retno Marsudi announced the entry into force of the BIT in a virtual meeting on 9 March.

"The entry into force of the Singapore-Indonesia Bilateral Investment Treaty marks another important milestone in our countries’ longstanding economic relationship. It will offer greater protection for Singapore investors venturing into the Indonesian market, and vice versa, safeguarding investments andboosting investors’ confidence," Chan said.

Benefits of the BIT include protection from discriminatory treatment, protection from illegal expropriation, and international arbitration in case of disputes.

Singapore was Indonesia's largest foreign investor in 2020, with investments reaching a record $US 9.8 b. In turn, Indonesia holds a spot as one of Singapore's top 10 trading partners, with $48.8 b bilteral trade recorded in the previous year.

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