JAKARTA — Indonesian President Prabowo Subianto and Singapore Prime Minister Lawrence Wong conducted the second Singapore-Indonesia Leaders' Retreat in Jakarta on July 6, 2026. The two leaders committed to keeping the Strait of Malacca open and accessible to all vessels, and they oversaw the signing of 26 bilateral agreements.

President Subianto stated that Indonesia would continue coordinating with Malaysia and Thailand to ensure the Strait of Malacca remains open, safe, and accessible in accordance with the U.N. Convention on the Law of the Sea (UNCLOS). "Indonesia and Singapore are countries that directly border one another in the Strait of Malacca," Subianto said. "We have a shared interest in maintaining the Strait of Malacca as a passage that is free for all parties."

Prime Minister Wong noted that recent events in the Middle East obstructed shipping through the Strait of Hormuz, emphasizing the importance of maintaining a free and secure Strait of Malacca. Wong said, "We both share an interest in upholding navigational rights and freedoms, and keeping sea lines of communication open to all, including the unimpeded rights of transit passage of vessels, in accordance with UNCLOS, which is also customary law."

The 26 agreements signed included 18 government-to-government cooperation agreements and eight business-to-business agreements. Among these, the Indonesian sovereign wealth fund Danantara signed a Memorandum of Understanding with Keppel Electric, Sembcorp Industries, and Singapore Energy Interconnections, all based in Singapore, regarding the expansion of cross-border electricity trade. Danantara and Singapore's Ministry of Trade and Industry stated that this Memorandum of Understanding would explore potential collaboration on the offtake of imported low-carbon electricity and help resolve commercial and technical issues related to cross-border interconnector development.

Indonesian Energy Minister Bahlil Lahadalia stated that Singapore and Indonesia were conducting price negotiations for the cross-border electricity deal. Lahadalia said, "We want everybody to reap the benefits, reaching a win-win solution for both."

In April 2026, Indonesian Foreign Minister Purbaya Yudhi Sadewa raised the idea of imposing a levy on ships passing through the Strait of Malacca, citing Iran's plan to charge a toll in the Strait of Hormuz as a precedent. Singapore Foreign Minister Vivian Balakrishnan expressed concern regarding this proposal.