Gerindra Legislator: Singapore is a Close Neighbor, But Indonesia Must Guard Its Own Added Value

Member of the Indonesian House of Representatives (DPR RI) from the Gerindra Faction, Azis Subekti, (photo: dok. gerindra)

Member of the Indonesian House of Representatives (DPR RI) from the Gerindra Faction, Azis Subekti, assessed that the relationship between Indonesia and Singapore is entering a new phase. Not just trade or investment relations, but the relationship between two neighboring countries that are both adjusting to major economic changes in the region.

Azis said that Indonesia and Singapore have a very long relationship. Both countries are not only geographically close, but are also connected by history, culture, trade, and people-to-people relations.

"Indonesia and Singapore are like neighbors whose houses are very close. The relationship is long, interdependent, but precisely because it is too close, sometimes there are hot and cold," said Azis in his statement, Saturday, June 13.

According to Azis, long before the borders of modern states were formed, the Malacca Strait region had become a civilization route. Traders from various regions of Nusantara moved through the same waters. Languages, cultures, and traditions mutually influenced.

However, in the modern journey, said Azis, Indonesia and Singapore developed with different characters. Indonesia was born from the revolution and awareness as a great nation. Singapore grew as a small country that must carefully read the changes in the world.

"One learns to manage abundance, one learns to manage limitations. Both have their own strengths," he said.

Azis assessed that the difference made the relationship between the two countries unique. Indonesia has a large market, abundant natural resources, and a strategic position. Singapore has strengths in financial services, trade, logistics, and access to global networks.

"However, close relations should not make Indonesia ignore an important question: how much of the economic value that is born in Indonesia actually goes back to Indonesia?" he said.

He also highlighted a number of issues that have frequently emerged in the public space, ranging from the many Indonesian companies that have established holding companies in Singapore, foreign investment entering Indonesia through Singapore, to alleged practices of transfer pricing, profit shifting, and under invoicing.

"The question is simple, the value that is born in Indonesia stays in Indonesia or does it first revolve abroad? This is what must be answered with stronger governance," said Azis.

Azis said that various allegations of manipulation of export values of commodities must be placed in the legal corridor. If proven, such practices not only harm the tax administration, but also reduce national added value. According to him, every rupiah lost from potential state revenue means a reduction in fiscal space to finance education, health, infrastructure, and social protection.

Azis also supports the government's steps to strengthen downstream, improve export supervision, manage natural resources, hunt for fiscal leaks, and deepen the national financial system. "This is not a hostility to anyone. This is the natural process of a great nation that wants to stand more upright on its own feet," he said.

He emphasized that Indonesia should not always be a supplier of raw materials. Indonesia must rise in the global value chain.

"Indonesia is no longer enough to just sell nickel, but must sell batteries. It is not enough to just sell CPO, but must sell its derivatives. We must not only be a production site, but must be a growth center," said Azis.

However, Azis reminded the public not to be easily trapped by extreme views. According to him, market pressure, rupiah fluctuations, and investment dynamics cannot always be read as conspiracies. However, the market cannot be considered completely neutral from interests.

"The reality is in the middle. Every major change must cause friction. That is the price that must be paid by a nation that is undergoing transformation," he said.

Azis also assessed that Indonesia's future relationship with Singapore will be determined by the ability of the two countries to maintain trust. According to him, Singapore needs to understand that a stronger Indonesia is not a threat. On the other hand, Indonesia also needs to build its economic strength with clean governance and strong institutions. He reminded the old saying of the people of Nusantara: don't fish in murky waters.

"Good neighbors are not the fastest to take advantage when the house next door is being renovated. Good neighbors understand that a region will only be safe if all the houses in it stand firm," said Azis.

According to him, the future of Indonesia and Singapore should not be built on mutual suspicion, but rather honesty and a willingness to grow together. "A strong Indonesia will not be a threat to Singapore. Rather, a prosperous, confident, and upright neighbor is the best guarantee for regional stability," he concluded.