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Indonesia-Singapore bilateral investment treaty comes into effect
Indonesia and Singapore, respectively the largest and richest economies in Southeast Asia, expect the deal to boost two-way investment flows by up to 20 percent over the next five years.
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Indonesian Foreign Minister Retno LP Marsudi (right) and Singaporean Trade and Industry Minister Chan Chun Sing (left) hold the instrument of ratification of Indonesia-Singapore bilateral investment treaty (BIT) documents during an online meeting on Tuesday. (Courtesy of Foreign Ministry/-)
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ndonesia and Singapore’s bilateral investment treaty (BIT) has entered into force after ministers of the two countries signed the treaty’s instrument of ratification on Tuesday.
Indonesian Foreign Minister Retno LP Marsudi said the treaty, which was first signed on Oct. 11, 2018, in Bali, was expected to boost two-way investment flows by between 18 percent and 22 percent over the next five years.
The treaty provides greater legal certainty to Indonesian and Singaporean investors who invest in either country by granting greater protection from discriminatory treatment and illegal expropriation, among other things.
“In this current difficult situation, the ratification of the BIT serves as an important economic boost to expedite economic recovery in the two countries,” said Retno during an online press briefing on Tuesday.
She said the deal would also help realize $200 billion worth of investment each year in the region by 2030.
Singapore remained Indonesia’s largest investor in the past five years. Last year, Singapore’s investment in Indonesia reached a record US$9.8 billion, an increase from $6.5 billion in 2019, according to data from the Investment Coordinating Board (BKPM).
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