The Government of the Republic of Singapore and the Government of the Republic of Indonesia (each hereinafter referred to as a "Contracting Party);

Bearing in mind the friendly and cooperative relations existing between the two countries and their peoples;

Intending to create favorable conditions for investments by investors of one Contracting Party in the territory of the other Contracting Party on the basis of sovereign equality and mutual benefit;

Recognizing that the Agreement on the Promotion and Protection of Investment (hereinafter referred to as "the Agreement") will be conducive to the stimulation of investment activities in both countries pursuant to prevailing laws and regulations of the respective countries;

Have agreed as follows: