SG, Indonesia act to shield $42.5b trade from supply chain shocks

Its ministers target faster ASEAN petroleum security ratification this year. 

Singapore and Indonesia have pledged to work together to manage supply chain and energy market disruptions from the Middle East conflict, as bilateral merchandise trade between the two reached $42.5b (US$32.86b) in 2025.

Both countries will keep markets open and trade flows uninterrupted, according to a joint statement by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong and Indonesia Coordinating Minister for Economic Affairs Airlangga Hartarto.

They said airports, seaports, and trade infrastructure should remain operational to minimise disruptions.

Both sides will also seek to ratify key ASEAN agreements within the year, including the ASEAN Framework Agreement on Petroleum Security and the Upgraded ASEAN Trade in Goods Agreement.

Under the upgraded trade agreement, Singapore and Indonesia committed to avoid trade-restricting non-tariff measures and review such measures affecting essential goods where appropriate.

They also said export prohibitions or restrictions on essential goods, where imposed under GATT 1994, should take into account the impact on importing countries’ domestic supply.

Meanwhile, the statement called for the restoration of transit passage for vessels and aircraft in the Strait of Hormuz, in line with international law as reflected in the 1982 UNCLOS.

“Singapore, Indonesia, and Malaysia have upheld the regime governing the Straits Used for International Navigation in the Straits of Malacca and Singapore, one of the world’s busiest and most strategically vital waterways,” the ministers said.

Both countries also said they would strengthen regulatory frameworks covering standards, customs procedures, digital trade facilitation, and transparency of regulations to support trade and investment.