Singapore & Indonesia Strengthen Supply Chains for Mutual Benefit

Singaporean companies are increasingly adopting a ‘twinned operations’ model by aligning domestic activities with lower-cost bases in Indonesia’s Batam, Bintan, and Karimun (BBK), creating a strategic two-hub setup as highlighted by the Economic Development Board (EDB). Singapore stands out as one of the top foreign investors in the BBK, particularly in Batam, where it has been the leading foreign investor since 2023. In the first half of 2025, Singaporean businesses injected investments totaling IDR 7.9 trillion (S$632 million) into Batam, representing 69% of the island’s total foreign direct investment. The EDB’s chairman, Png Cheong Boon, emphasized that BBK is an economic and strategic hinterland for Singapore-based manufacturers, offering land and manpower resources in close proximity to their Singapore operations.