The agreement was signed on the resort island of Bali during a ceremony attended by Indonesian President Susilo Bambang Yudhoyono and Prime Minister Lee Hsien Loong of Singapore.

Yudhoyono said the treaty specified 31 crimes, ranging from money laundering and fraud to bribery and terrorism financing, as far back as 1992.

"It is good for Indonesia because we know that there were many banking crimes during the economic crisis," he told reporters. "The agreement will soon be ratified by the Parliament."

Indonesia has already signed extradition pacts with Malaysia, the Philippines and Hong Kong, and is negotiating similar treaties with China and Canada "because the fugitives are not only in Singapore," Yudhoyono said.

But concerns have already been raised that it may be ineffective in Singapore because an unknown number of suspects there have changed nationalities.

Responding to questions on Singapore's readiness to open the bank accounts of fugitives, Prime Minister Lee said, "We have rules which enable the recovery of assets from people who have been convicted in criminal offenses, and they have been exercised."

Lee said Indonesia has taken action against people suspected of corruption, and their assets were recovered.

"Bank secrecy law protects the confidentiality and the privacy of legitimate deposits at the banks," he said. "We do not protect criminals."

Indonesia Corruption Watch founder Teten Masduki said Singapore is a haven for as many as 200 Indonesians suspected of embezzlement, many of whom fled the country with stolen funds as the banking system collapsed in 1997.

"We hope the treaty will enable Indonesia to easily prosecute corrupt business people and politicians," Masduki said.

Indonesian State Secretary Yusril Ihza Mahendra said Tuesday there are "dozens" on a wanted list, but declined to name them or say how much money was involved.

Merrill Lynch and Cap Gemini said last year in a report that around 18,000 wealthy Indonesians live in Singapore with a total net worth of US$87 billion (€64 billion).

Indonesian Attorney General Abdul Rachman Saleh said the treaty, based on UN conventions, will cover crimes dating back "more than five years" to the reign of former dictator Suharto, but details of the agreement ironed out this week have not been published.

"It should and can return the assets of the corrupt officials to the country of origin," he told reporters.

Yunus Hussein, head of an agency tracking suspect transactions, said it can be useful "as long as it also covers the proceeds of crimes hidden in Singapore" and is retroactive to 1992.

Indonesia was among countries the worst hit by the Asian financial crisis, which ravaged the banking system and thrust the nation into years of recession, eventually toppling President Suharto after more than three decades of brutal rule.

The economy is still recovering, but poverty and unemployment are widespread.

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