Indonesia, Singapore Sign Extradition Treaty
Long-awaited pact spurs hope of recovering embezzled funds

Rudy Ronald Sianturi (RudyS) Email Article Print Article

Published 2007-04-30 17:54 (KST)



After 36 years, Indonesia and Singapore last Friday at Tampak Siring Palace, Gianyar, Bali, finally signed the long-awaited extradition agreement. Under this scheme, Singapore will allow Indonesia to pursue fugitives who fled to the city-state.

Hasan Wirayuda, Indonesian foreign minister, told reporters following the signing that this was an achievement given the long and complicated process since the first talks in 1970. For some reasons, notably the differences in legal systems, the agreement was stalled for over 30 years. Talks commenced once more since 2005, after many Indonesian outlaws who allegedly stole state funds intended for banking recapitalization during the 1990s Asian financial crisis took residence in Singapore.

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Abdul Rahman Saleh, Chairman of the Indonesian Supreme Court, expressed his hope that the treaty will help the police in their efforts to bring back those who fled to Singapore following the collapse of the Soeharto regime in 1998. Meanwhile, Singapore Premier Lee Hsien Loong told reporters that assets belonging to these criminals can be returned under the country's assets return regulation.

As estimated by Indonesian Corruption Watch (ICW), Indonesia's losses during the 1990s exodus are worth billions of U.S. dollars. One-third of the tycoons in the Singaporean banking and real estate sectors are actually from Indonesia, whose assets are deemed to amount to $87 billion. Some of these are Indonesia's most notorious fugitives.

Singapore shrugged off the fear that its property and banking sectors will be harmed once the agreement takes effect. These two business activities have been enjoying capital inflow from Indonesia for the last two decades.

The treaty provisions cover 31 crimes and are retroactive up to 15 years, long enough to include all the crimes since the Asian financial crisis in 1997. Singapore initially wanted a 5-year retroactive period only, but finally accommodated the Indonesian proposal.

Among the crimes covered are bribery, corruption, money-laundering, forgery, banking crimes, corporate law breaches and bankruptcy. Crimes related to profit-gaining through acts of corruption and terrorism are also included.

The treaty represents a give-and-take between the two neighboring countries. In addition to the extradition agreement, economic and defense agreements were also signed. Singapore was able to secure a 13-year agreement that allows it to use Indonesia's military training facilities, with a two-year extension if necessary. This was already a win-win solution given that Singapore initially wanted a 25-year contract, while Indonesia preferred a 10-year concession. Singapore also wanted to allow third parties to participate in the training but Indonesia, wary of sovereignty issues, agreed on a case-by-case basis only.

Asked by reporters in Jakarta on Sunday about the Supreme Court's readiness to make use of the treaty, Saleh stated that his office has 15 to 20 names as their top priorities. Some of them live in Singapore. Moreover, the Supreme Court has also prepared a number of specialists trained in extradition and mutual legal assistance. Separately, Police Inspector General Sisno Adiwinoto, the public liaison of the Indonesian Police, speaking from his Jakarta headquarters said that he hoped that Singapore will be more cooperative than before when it comes to capturing suspects.

Despite the promise of the treaty, some parties seemed to be not as optimistic as others. They highlighted the complication of the treaty and wondered why Singapore eventually concluded the law. George Junus Aditjondro, an Australian-based Indonesian sociologist specializing in the corruption cases committed by Soeharto's family, commented that Singapore is economically unable to exist without being a laundry place for money coming from the whole of Southeast Asia, and especially from Indonesia. He said that this practice has been going on since the Soeharto administration. He showed some concerns as to the compensation involved.

As if answering those concerns, Indonesian Vice President, Jusuf Kalla on Friday asserted that Indonesia will keep the ban on sand exports to Singapore. Already three small uninhabited islands of Riau Kepulauan Province, Indonesia, are now completely gone after being overexploited to ship sand to Singapore. Weeks before the treaty signing, Indonesia banned sand exports due to erosion problems, though some officials believed it was to press Singapore to ratify the agreement. Even the 22 Singaporean ships in detention for illegally smuggling out sand will not be released and will be charged according to the Indonesian penal code, added Kalla.