PAP Govt wants to retain laundered money from Indonesia

Radio Australia:

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.

Financial Times:

In an interview with the Financial Times Jusuf Kalla (Indonesian vice-president) 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.”