Investment as a Catalyst for Strengthening the Green Economy: Collaboration between Indonesia and Singapore

Department of Social and Political Sciences, Universitas Muhammadiyah Yogyakarta, Indonesia

^* Corresponding author: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract

This paper examines the strategic collaboration between Indonesia and Singapore in driving the green economy, emphasizing investment as a catalyst for environmental sustainability and low-carbon development. As climate change accelerates, nations must not only decarbonize but also build sustainable, inclusive, and resilient economies. With Singapore’s role as a financial and technological hub and Indonesia’s position as a resource-rich, emerging green energy market, the bilateral partnership creates an opportunity to advance regional climate goals. Using qualitative analysis of investment agreements, policy documents, and secondary data, the study explores three key pillars of this cooperation: solar panel supply chains, carbon capture and storage (CCS), and green industrial zones. The paper also assesses the fiscal, technological, and employment impacts of over US$10 billion in green investments, signed in June 2025, and examines how these initiatives can contribute to regional decarbonization and the ASEAN Green Economy Roadmap. The findings highlight both the opportunities and challenges of green economic collaboration, calling for stronger regulatory frameworks, technology transfer mechanisms, and inclusive governance to maximize climate and social co-benefits.