Foreign Minister Hassan Wirayuda said Tuesday, Apr 24, that the extradition agreement, finalized on Monday, would lead to the arrests of a number of Indonesians living in Singapore, who are also believed to have substantial bank accounts and investments in the country.

"The regulation is retroactive, so we will try to bring back corruption suspects from the time of Soeharto," he said.

Hassan said the treaty, which has been under discussion since the 1970s, would cover 42 types of crime and would be signed in Bali this Friday.

Singapore is home to many wealthy Indonesians who are key players in the property market and business for private banks.

One third of Singapore's high net-worth investors -- those with net financial assets of more than US$1 million -- are of Indonesian origin, Merrill Lynch and Capgemini said in a report, adding that these 18,000 Indonesians had total assets of $87 billion.

Indonesia has in the past accused Singapore of looking after crooked businessmen and officials, who are alleged to use the city state to launder money.

Legislator Djoko Susilo of the House of Representatives Commission I on foreign affairs said the retroactive clause in the treaty needed to be detailed and that there should be a deadline for the parliaments of both countries to either reject or ratify the treaties.

"If we deem (the agreements) to give Singapore more benefits than us, the House can refuse to ratify them," said the National Mandate Party member.

The defense treaty, which Singapore requested be discussed alongside the extradition treaty, could give Singapore space for military training and allow it to bring a third party to its military exercises inside Indonesian territory.

Yuddy Chrisnandi of the Golkar Party, also a member of Commission I, said the ability of the government to trace and retrieve money stolen from it should be the main point of the agreement.

"Therefore, to avoid debate after the signing, the government should discuss the final draft first with the House so we can have a shared view because we have power over an international agreement," he said.

Former Singapore prime minister, now "minister mentor" Lee Kuan Yew said Tuesday that the extradition treaty would hurt Singapore's property and banking sectors.

"It's laughable. Do you believe that any Indonesian who was likely to be extradited would be here at all?" Lee said in an interview with Reuters.

"It does act as an inhibitor. It does give an extra barrier for any would-be escapee from their system," he said.

Lee also said Singapore had very strict rules and safeguards to prevent money-laundering in response to accusations at home about Indonesians fleeing to Singapore with stolen state money to evade prosecution.
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