Indonesia says Singapore wants to retain laundered money
Radio Australia
1 Mar 07
http://www.radioaustralia.net.au/news/stories/s1859778.htm
Indonesia's vice president claims Singapore is refusing to sign an
extradition treaty because it wants to retain billions of dollars
in allegedly corrupt money.
Jusuf Kalla says the cash was allegedly taken out of Indonesia by
fleeing tycoons during the 1997-1998 Asian financial crisis.
He says if the treaty is signed, the corrupt Indonesians will not
want to live in Singapore, but their money strengthens Singapore's
economy.
The absence of a bilateral extradition treaty is causing friction
between the two countries.
Jakarta claims many suspects wanted in Indonesia have fled to
Singapore, which is also used by Indonesian criminals to launder
money.
Indonesia unhappy over Singapore's refusal to sign an extradition
treaty
John Aglionby
Financial Times
1 Mar 07
http://www.ft.com/cms/s/999a74ac-c693-11db-8f4f-000b5df10621.html
Indonesia's economy will grow by up to 7 per cent this year, its
fastest growth in the decade since the Asian financial crisis, the
country's powerful vice-president forecast on Tuesday.
In an interview with the Financial Times Jusuf Kalla also lashed
out at Singapore for refusing to sign an extradition treaty with
Indonesia, accusing the island state of trying to keep billions of
dollars in allegedly corrupt money siphoned out of Indonesia by
fleeing tycoons in the 1997-98 financial crisis.
"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," Mr Kalla said.
Singapore has said that Susilo Bambang Yudhoyono, Indonesian
president, and Lee Hsien Loong, the Singaporean prime minister,
agreed in 2005 that any extradition treaty could only be signed
together with a defence co-operation agreement. But Mr Kalla
dismissed that claim.
"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."
Mr Kalla's predicted growth rate is well above the government's
stated goal of 6.3 per cent growth this year in south-east Asia's
largest economy. Most independent economists have predicted growth
of about 6 per cent after last year's 5.5 per cent.
"Our growth this year can be above 6 per cent, up to 7 per cent,"
he said. "Perhaps it's too optimistic but with all the conditions
that are now in place it should be achievable."
Mr Kalla has long been one of the most bullish figures in Mr
Yudhoyono's government, which took office in 2004 with a mandate to
accelerate reforms and boost economic growth.
One Jakarta-based economist said the vice-president's prediction
was unlikely to be met for years because "the pace of reform is
just moving too slowly".
But Mr Kalla said the resolution of ethnic conflicts in places such
as the tsunami-ravaged Aceh province, a reduced threat of Islamic
terrorism and accelerating infrastructure development were all
positive for the economy.
"In 2000 there were all kinds of risks, political, security,
conflict everywhere," he said. "Now there isn't any of that...But
the bottom line is that no country's image is going to be good if
the economy is not in good shape. For example, China used to be
bad. But now people are not talking about democracy there. They
think the place is great. So in Indonesia the economy has to take
priority."
