The visit, which follows President Jokowi's state visit to Singapore in July last year, is in keeping with a long-held tradition of leaders from the two close neighbors meeting informally each year to boost ties.

The Prime Minister's Office (PMO) said in a statement today that both leaders will review the progress in bilateral relations, explore ways to deepen cooperation and exchange views on regional and international developments during the retreat, which officially begins tomorrow.

Accompanying PM Lee are his wife Ho Ching and nine political office-holders, including Deputy Prime Minister and Coordinating Minister for National Security Teo Chee Hean, and the ministers for trade and industry, defense, foreign affairs, and education, among others.

A highlight of the retreat, said Indonesia's Industry Minister Airlangga Hartarto, is the inauguration of the Kendal Industrial Park by President Jokowi and PM Lee.

Analysts said the joint venture in Semarang between Sembcorp Development and Indonesian developer Jababeka marks a new trend of Singapore companies venturing beyond places like Jakarta and Batam.

PM Lee and President Jokowi will also witness the signing of four memorandums of understanding, including one on tourism cooperation between the Ministry of Trade and Industry and Indonesia's Tourism Ministry.

The other agreements cover plans to jointly build capabilities in the digital economy, hospitality and tourism, and a smart city development in Makassar by IE Singapore.

These will expand on the long- standing and strong economic ties between Singapore and Indonesia, which recorded bilateral trade of S$58.7 billion (US$41.5 billion) last year.

Singapore was Indonesia's top foreign investor last year, and is on course to maintain that position for this year, after recording $$7.1 billion in investments in just the first nine months of this year.

Observers expect the close economic cooperation to continue despite periodic tensions over issues such as transboundary haze, airspace management and, more recently, Indonesia's tax amnesty.

Indonesian Chamber of Commerce and Industry (Kadin) official Sarman Simanjorang hopes the meetings will result in improved business regulations that are mutually beneficial for both countries.

"Indonesia and Singapore are part of the ASEAN economic community, and the potential for growth is huge; we should support each other," the deputy chairman for Kadin's Jakarta chapter said.

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