Deal will allow resumption, expansion of military training

The Straits Times, April 25, 2007


MILITARY training between Indonesia and Singapore will resume now that the two neighbours have agreed to sign a Defence Cooperation Agreement, Defence Minister Teo Chee Hean said yesterday.

In his first remarks since Indonesia and Singapore concluded talks on Monday on an extradition treaty and a defence agreement, Mr Teo explained that the deal will move defence ties into high gear.

'Well, it means that we'll be able to resume training and also to expand and broaden that training. The details will be made known at the end of this week,' said Mr Teo, who fielded questions on the agreement on the sidelines of the 40th Anniversary Parade for the Singapore Combat Engineers.

The minister said Singapore has forged 'a very close defence relationship' with the Indonesian armed forces for 'many, many years'.

'In fact, I took part in the first exercise we ever had with them in 1974,' added Mr Teo, who was chief of the navy before he entered politics.

Ties between the two armed forces have remained strong over the years, even after Indonesia froze the use of a joint military training area in 2003.

Mr Teo said the signing of the two deals on Friday in Bali signals that both countries can 'strengthen and deepen this relationship further'.

Commenting on the extradition treaty at a separate event yesterday was Minister Mentor Lee Kuan Yew, who was asked if he had any concerns that, as a result of the deal, wealthy Indonesians living in Singapore will pull their money out of the banking system or the property market. He replied that the deal would not hurt Singapore's economy.

He said: 'Please remember the financial sector was not built up on Indonesian money. It has been going on now since we started in the late 1970s, early 1980s, and we today handle about $720 billion in funds.

'They come from not just the immediate region, but now from India, the Gulf, some from China, some from Europe. Indonesian money is no more than 2 to 3 per cent.'

Speaking at the Reuters Singapore Newsmaker Event last night, Mr Lee said conclusion of the deal should come as no surprise as negotiations have been going on for seven to eight years.

Even so, he added, the treaty will act as a barrier to any would-be escapee from the Indonesian system - a reference to Jakarta's contention that the treaty will help bring to justice corrupt Suharto-era officials and business figures who fled to Singapore and parked their money in banks and other investments here.

Also yesterday, Indonesian Foreign Minister Hassan Wirayuda told the AFP news agency: 'The regulation is retroactive, so corruptors from the time of Suharto, we will try to bring back here.'

Mr Wirayuda would not release names of any suspects, but said the treaty will cover 42 types of crime.

He declined to release further details, saying he had to first brief President Susilo Bambang Yudhoyono.