Indon VP criticises Singapore on lack of bilateral treaty: report

The Straits Times, February 28, 2007


JAKARTA - Indonesia's vice-president has accused Singapore of refusing to sign an extradition treaty because the city-state wants to retain billions of dollars in allegedly corrupt money, a report said on Wednesday.

The cash was allegedly taken out of Indonesia by fleeing tycoons during the 1997-1998 Asian financial crisis, Mr Jusuf Kalla was quoted as saying in the Financial Times.

'They're thinking on the business side. If this treaty is signed, then the corrupt Indonesians won't want to live in Singapore any more. That's all it is. It strengthens Singapore's economy,' he was quoted as saying.

'Singapore often says there's so much corruption in Indonesia. But when we want to work together on combating corruption, they don't want to,' he added.

The absence of a bilateral extradition treaty is a thorn in relations between the two countries.

Jakarta considers it crucial to the fight against corruption and claims many suspects wanted in Indonesia for corruption have fled to Singapore.

Indonesian lawmakers have said that Singapore is used by Indonesian criminals to launder money.

Singapore says it has sufficient safeguards against becoming a magnet for laundered funds.

In the same interview, Mr Kalla expressed optimism that Indonesia's economy could grow by up to seven per cent this year.

'Our growth this year can be above six per cent, up to seven per cent. Perhaps it's too optimistic but with all the conditions that are now in place it should be achievable,' he was quoted as saying.

Resolution of ethnic conflicts, a lower threat of Islamic terrorism and accelerating infrastructure development were favourable for the Indonesian economy, he said. -- AFP