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Singapore, Indonesia to partner on carbon credits and SME trade
🇸🇬 Singapore /Economy & Trade

Singapore, Indonesia to partner on carbon credits and SME trade

From CNA · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Singapore and Indonesia will collaborate on carbon credits and facilitate cross-border trade for Indonesian SMEs.
  • The two nations signed agreements to deepen cooperation in energy and sustainability, including a memorandum of understanding on carbon credits under the Paris Agreement.
  • Prime Minister Lawrence Wong expressed confidence in Indonesia's future and highlighted the importance of bilateral ties for regional competitiveness.

Singapore and Indonesia are set to deepen their collaboration on carbon credits and enhance cross-border trade opportunities for Indonesian small and medium-sized enterprises (SMEs). This strategic partnership aims to bolster economic ties and promote sustainable development between the two neighboring nations.

We want Indonesia to succeed because our futures are closely linked. And our confidence in Indonesia is reflected in our actions.

— Lawrence WongPrime Minister Lawrence Wong speaking at a press conference with Indonesian President Prabowo Subianto to reaffirm bilateral ties.

Prime Minister Lawrence Wong announced the initiatives following the second Singapore-Indonesia leaders' retreat in Jakarta. He emphasized Singapore's strong confidence in Indonesia's economic trajectory, stating, "We want Indonesia to succeed because our futures are closely linked." Wong highlighted that Singapore's consistent investment in Indonesia over many years reflects this confidence. The collaboration is expected to create more opportunities for both countries' citizens and strengthen the region's overall competitiveness within ASEAN.

By working together, we can create many more opportunities for our peoples, strengthen our resilience and make our two countries, as well as our region in ASEAN, more competitive.

— Lawrence WongPrime Minister Lawrence Wong highlighting the benefits of bilateral cooperation.

A key aspect of the cooperation involves a memorandum of understanding on carbon credits, aligned with Article 6 of the Paris Agreement. This initiative is designed to support both nations' green transitions and provide direct benefits to local and indigenous communities in Indonesia. The agreement, signed by trade ministers, signals a commitment to developing robust carbon markets that accelerate climate action. Both countries will exchange expertise and work towards an implementation agreement, identifying high-integrity carbon credit projects.

Indonesia has tremendous potential in renewable energy and Singapore would like to partner Indonesia in unlocking this potential.

— Lawrence WongPrime Minister Lawrence Wong discussing energy security and renewable energy cooperation.

Furthermore, the partnership extends to energy cooperation and supply chain resilience. Singapore seeks to partner with Indonesia in unlocking its vast renewable energy potential, citing a joint project to construct one of Indonesia's largest solar farms. Wong views the planned cross-border electricity project as a "win-win" initiative and a crucial step towards a broader ASEAN power grid, underscoring the shared vision for a sustainable and interconnected regional future.

win-win

— Lawrence WongPrime Minister Lawrence Wong describing the cross-border electricity project between Singapore and Indonesia.
DistantNews Editorial

Originally published by CNA in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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