Padjar Iswara and Ewo Raswa
TEMPO Interactive
12 Oct 06
Indonesian Corruption Watch (ICW) suspects that a large part of the
Rp506.8 trillion in funds parked in Singapore is owned by former
embezzlers of state and private national banks.
Teten Masduki, the Coordinator of ICW, said that there were in fact
some law-abiding Indonesians who have assets and save their funds
in Singapore.
However, the amount of these funds is relatively small compared to
that of former embezzlers.
"It's a pity to see they still save their money there," Teten told
Tempo.
His remark was in response to the result of Merrill Lynch and
Capgemini's survey which reported that one-third of 55,000
Singapore's rich people are Indonesians.
The number reaches a total of 18,000 and their status is that of
permanent residents (foreigners who have permanent stay permits) in
Singapore.
The global financial organization estimates that the amount of
assets of Indonesian people in Singapore is S$87 billion, or around
Rp506.8 trillion.
According to Teten, embezzlers prefer to deposit their funds in
Singapore because they feel safe there although the origin of the
funds is illegal.
The reason for this is that Singapore does not have a Money
Laundering Law nor is it yet willing to sign an extradition
agreement with Indonesia.
Through such an agreement, Indonesia can force Singapore to
surrender bad debtors, including return of assets and funds.
Teten acknowledged that Indonesians also save funds in Singapore
because of other factors, for example business.
This is because the business and investment climate in Singapore is
very attractive.
"In addition, legal certainty is also good, far better compared to
in Indonesia," he said.
Sofjan Wanandi, Head of Indonesia Entrepreneurs Association, made
similar comments.
A lot of Indonesians save their money in Singapore because the
investment climate is extremely interesting.
The country's government provides facilities including tax and
business credit allowances.
"Singapore also provides legal certainty to investors."
