New age in Singapore's relations with Indonesia

By Barry Desker, Published The Straits Times, 26 Jan 2022

The Leaders' Retreat in Bintan on Tuesday (Jan 25) between Prime Minister Lee Hsien Loong and President Joko Widodo set the stage for a new milestone in bilateral relations.

The atmospherics at the meeting highlighted the strong level of confidence and trust between the two leaders, underlined by the concrete agreements concluded between the two countries.

The interactions between the ministers reminded me of the easy informality which characterised exchanges among the participants at summit meetings during the time when I was Singapore's ambassador to Indonesia in the late 1980s and early 1990s.

PM Lee and President Widodo witnessed the signing of an expanded framework of agreements, covering the Flight Information Region (FIR), defence cooperation between Singapore and Indonesia, and the extradition of fugitives.

Singapore's Senior Minister and Coordinating Minister for National Security Teo Chee Hean and Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan also signed an "umbrella" exchange of letters to bring the three agreements into force at the same time.

Singapore and Indonesia have discussed these complex issues for several decades, including the years when I served in Indonesia. Although both parties were keen on a resolution of these issues, the challenge was to find a balanced framework which created a mutually beneficial outcome, as this would be key to the durability and long-term success of any agreement.

The set of agreements in this framework respects international law and the sovereign rights and interests of both countries. The exchange of letters sets out a clear agreement between Indonesia and Singapore on the pathway to take these agreements from the signing stage to ratification, and ultimately entry into force at the same time, on a mutually agreed date.

The signing of these agreements at the Leaders' Retreat demonstrates the maturity of the two countries' relationship and a commitment to resolve outstanding issues through discussions and negotiations conducted in a cooperative environment.

This is not the first time the Indonesian and Singapore governments have sought to resolve these longstanding issues. In 1995, an FIR agreement was signed and ratified by both sides but did not enter into force due to complications in the International Civil Aviation Organisation (ICAO) approval process.

In 2007, the two parties signed an extradition treaty as well as the Defence Cooperation Agreement (DCA), which were to be implemented simultaneously. However, Indonesia did not ratify these agreements.

In October 2019, PM Lee and President Widodo endorsed a Framework for Discussions on the FIR issue and Singapore's military training in the South China Sea. In April last year, this was expanded to include the extradition treaty.

As someone who was involved in FIR negotiations from the 1970s onwards, my assessment is that the new agreement provides a balance of benefits for Singapore and Indonesia.

The boundary between the Singapore FIR and the Jakarta FIR will be realigned largely taking into account Indonesia's archipelagic territorial baseline, as deposited with the United Nations in 2009.

To meet Singapore's present and future civil aviation needs, Indonesia will delegate to Singapore the provision of air navigation services in Indonesian airspace adjacent to Singapore for 25 years.

This arrangement will support the growth of both countries' civil aviation sectors, including Changi and Indonesian airports. The agreement provides for Indonesia to continue to receive, in full, the revenue collected by Singapore on Indonesia's behalf for air navigation charges on flights over Indonesia where the provision of air navigation services has been delegated to Singapore.

There will also be enhanced cooperation between civil and military personnel in air traffic management. As part of these arrangements, Singapore has agreed to the stationing of Indonesian personnel in the Singapore Air Traffic Control Centre.

Airspace management involves complex technical and operational matters which fall under the jurisdiction of ICAO. Both parties will jointly submit to ICAO the proposal for the realignment of the FIR boundaries and the delegation arrangement, after all three agreements have been ratified. Airspace users and other stakeholders will also need to be consulted.

As a major international air hub, Singapore's interest lies in ensuring reliable and effective air traffic management for the safety of aviation in the region that enables air traffic growth in a planned and sustained manner. With this agreement, Singapore continues to provide the air navigation services needed for Changi's air traffic for the duration of the 25-year pact.

The DCA, including its Implementing Arrangement, was signed in 2007 and remains unchanged. It provides a comprehensive strategic framework for a closer defence relationship between the Singapore Armed Forces (SAF) and the Tentara Nasional Indonesia (TNI).

The DCA will facilitate mutually beneficial cooperative activities, which will strengthen the professionalism and inter-operability of the SAF and TNI.

The DCA also provides clarity on the arrangements for the SAF's military training and exercises in training areas which became part of Indonesian waters and airspace subsequent to the 1982 United Nations Convention on the Law of the Sea.

The DCA builds on the longstanding joint exercises and joint training arrangements between the two militaries. It also provides for the possible future development of joint training facilities and training areas to strengthen cooperation and the capabilities of both armed forces.

The agreement, which is valid for the next 25 years, forms the basis for an enduring bilateral relationship between the TNI and SAF. The development of this relationship could serve as a benchmark for the strengthening of Asean defence cooperation, as Asean navigates a more challenging regional and international security environment in the years ahead.

The 2022 treaty is almost identical to the 2007 extradition treaty, except for an extension of the retrospective operation period from 15 years to 18 years prior to entry into force, at Indonesia's request to match the statute of limitations for the prosecution of offences in Indonesia. It will strengthen existing cooperation in combating crime.

Although the 2007 treaty did not enter into force, Singapore and Indonesia have been cooperating to prevent fugitives from using their respective territories as safe havens, whether it is the deportation of Singaporean terrorist fugitives to Singapore from Indonesia, or the Corrupt Practices Investigation Bureau assisting the Indonesian Corruption Eradication Commission, including serving summons requests to persons under investigation.

Implementation of this treaty will signal both countries' commitment to upholding the rule of law and will complement an Asean extradition treaty for which negotiations are ongoing.

The next stage for both countries will be the ratification of these agreements. The endorsement of the DCA by Indonesian Defence Minister Prabowo Subianto is to be welcomed. He has been touted as a candidate for the presidency in 2024 and is the chairman of Gerindra Party, the third-largest party in President Widodo's coalition which dominates Parliament.

The extradition treaty was signed by Indonesian Law and Human Rights Minister Yasonna Laoly, a senior member of the Indonesian Democratic Party of Struggle, the largest party in Parliament and the party of President Widodo. The party leaders will have to explain to their parliamentarians that ratification of these agreements is important and good for Indonesia.

Ratification and implementation of the Expanded Framework agreements will demonstrate the mutual commitment to resolving longstanding issues in an open and constructive manner. Implementation of these agreements will bring Indonesia and Singapore closer together and build mutual trust and confidence.

This set of agreements signifies a mature bilateral relationship built on trust, cooperation and mutual benefit. The Widodo administration deserves credit for its pragmatic and decisive approach to finding win-win solutions.

While President Widodo's first term focused on domestic issues, he is leaving a foreign policy legacy in his second term.

Although most observers have highlighted Indonesia's role as chair of the Group of 20 this year, President Widodo has also played a leading role in the Asean response to the coup in Myanmar and in strengthening Asean as an institution. Through the signing of these agreements, he has demonstrated a commitment to enhancing bilateral ties with Indonesia's closest neighbours.

For Singapore and Indonesia, the conclusion of these agreements resolves longstanding issues which have posed problems in the bilateral relationship. The new framework institutionalises the relationship and fosters mutually beneficial cooperation.

By Lim Yan Liang, Assistant Political Editor, The Straits Times, 25 Jan 2022

Singapore and Indonesia have concluded a set of agreements on three longstanding bilateral issues, including on aviation needs and safety, as they realign the boundary between their respective flight information regions (FIRs).

Under the FIR agreement, the boundary between the Singapore FIR and Jakarta FIR is realigned to be generally in accordance with Indonesia’s territorial boundaries.

As part of the pact, Indonesia will delegate the provision of air navigation services in portions of the realigned Jakarta FIR to Singapore for 25 years, which can be extended by mutual consent.

Prime Minister Lee Hsien Loong said this ensures Changi Airport is able to operate efficiently, safely and provide air traffic control services in order to function as an important international airport, and to be able to grow in the long term as one.

“It is a carefully negotiated and balanced set of agreements and I think both sides’ important interests and concerns have been met,” he told Singapore reporters.

PM Lee and Indonesian President Joko Widodo witnessed the signing of the agreements during their fifth Leaders' Retreat in Bintan on Tuesday (Jan 25). They also presided over an exchange of letters undertaking to bring the agreements into force simultaneously.

The other two agreements are an extradition treaty, and an agreement on defence cooperation and military training.

At their meeting, the two leaders affirmed the excellent relations between Singapore and Indonesia. They also agreed that significant progress has been made on bilateral cooperation in areas of mutual benefit to both countries, the Ministry of Foreign Affairs (MFA) said in a statement following the conclusion of the meetings.

PM Lee said the three agreements that were signed deal with bilateral issues that go back many years, even decades, and “have been significant items on the agenda which we have discussed for quite a long time”.

He noted that in 2007, Singapore and Indonesia reached agreement on two of them - the Defence Cooperation Agreement (DCA) and the extradition treaty - but after that, the agreements were not able to be ratified.

The two sides have committed to them again, with some minor adjustments to the extradition treaty, and will seek to have them ratified, he told reporters.

The agreements address issues that are important to both countries and can cause lots of trouble if they are not properly resolved, he said.

“But if they are settled properly, and we have a clear understanding on them, then you can go forward and do a lot more cooperation across the board.”

At a joint press conference after the signings, PM Lee said the conclusion of the agreements demonstrates the strength and maturity of the two neighbours’ relationship.

"These agreements take into account both parties' interests, represent a good balance of benefits, are durable agreements for the long haul designed to last for at least a generation, and create a solid foundation to move bilateral relations forward with confidence and trust."

Speaking before PM Lee, Mr Widodo said: "Going forward, we hope that the cooperation in law enforcement, aviation safety as well as defence and security of the two countries will continue to be strengthened based on the principle of mutual benefit."

PM Lee noted that the FIR agreement meets the civil aviation needs of both countries. The deal will have to be approved by the International Civil Aviation Organisation (ICAO).

The second agreement inked on Tuesday provides for the extradition of fugitives for a comprehensive list of extraditable offences, in accordance with the laws of both countries and subject to safeguards and provisions.

The treaty adds to Singapore's extradition arrangements with countries such as the United Kingdom, and with Malaysia and Brunei to mutually recognise and execute arrest warrants against fugitives.

PM Lee said: "The extradition treaty will enhance cooperation in combating crime and send a clear positive signal to investors."

PM Lee and Mr Widodo also witnessed the signing of a joint statement on the 2007 DCA and Military Training Area Implementing Arrangement (IA-MTA) between Singapore and Indonesia.

"The DCA will strengthen cooperation between our armed forces and advance our defence relations," said PM Lee.

The agreement will promote closer interaction between the Singapore Armed Forces (SAF) and Indonesian National Defence Forces, and will be in force for 25 years.

Under it, the SAF will continue to conduct military training and exercises in Indonesia, with full respect for Indonesia’s sovereignty over its territory.

PM Lee also accepted Mr Widodo’s invitation to the G-20 summit in Bali later this year and expressed Singapore’s support for Indonesia’s G-20 presidency.

The two leaders also endorsed several memorandums of understanding signed ahead of the retreat, including on green and circular economy development that covers collaboration on recycling and expertise sharing on waste management, among other things.

The two sides also agreed to work towards making the new travel bubble for visitors to Bintan and Batam reciprocal, and to continue discussions to expand air and sea travel more generally to more parts of Indonesia.

PM Lee said he was grateful to President Widodo for hosting a successful and fruitful retreat, and credited his leadership and vision for the positive outcome to negotiations over the longstanding bilateral issues.

For the three agreements to take effect, both countries will need to complete their domestic ratification processes.

PM Lee said: "I encourage the ministers and officials to maintain close cooperation and coordination and implement the agreements expeditiously."

The Straits Times, 25 Jan 2022

At the Singapore-Indonesia Leaders' Retreat on Tuesday (Jan 25), Prime Minister Lee Hsien Loong and President Joko Widodo witnessed the signing and exchange of three agreements as well as an exchange of letters undertaking to bring them into force at the same time.

Here are details of these pacts and what they cover, as well as five other agreements inked by both countries to coincide with the annual retreat.

Singapore and Indonesia have agreed to realign the boundary between the Jakarta flight information region (FIR) and the Singapore FIR.

Indonesia will delegate to Singapore the provision of air navigation services in portions of the airspace within the realigned Jakarta FIR.

The pact will remain in force for 25 years and can be extended by mutual consent if both parties find it beneficial to do so.

The FIR Agreement takes into account International Civil Aviation Organisation (ICAO) rules and regulations and will be submitted for approval to the ICAO in accordance with an agreed procedure.

Singapore and Indonesia will grant extradition - the handover of individuals wanted for a crime in the other country - for a comprehensive list of extraditable offences covered by the treaty.

They will do so in accordance with the laws of both countries and subject to the requisite safeguards and provisions in the treaty.

They can also extradite individuals wanted for crimes dating back 18 years.

The Defence Cooperation Agreement (DCA) will strengthen the strategic relationship between both defence establishments, and the Singapore Armed Forces (SAF) and Indonesian National Defence Forces (TNI), by enhancing cooperation and promoting closer interaction between both militaries.

As part of the DCA, the SAF will continue to conduct military training and exercises in training areas in Indonesia, with full respect for Indonesia's sovereignty over its territory, including its archipelagic and territorial waters and its airspace, and in accordance with the 1982 United Nations Convention on the Law of the Sea.

The DCA and its implementing arrangement between both armed forces for the military training area in Indonesia will remain in force for 25 years.

The memorandum of understanding (MOU) on financial and economic cooperation formalises the longstanding and multi-faceted cooperation between the finance ministries of both countries in areas such as Customs cooperation and fiscal policy. It also allows for future partnership in emerging areas such as financial services, climate finance and the digital economy.

The MOU between Singapore's Ministry of Sustainability and the Environment and Indonesia's Ministry of National Development Planning seeks to promote new opportunities for green growth. Potential areas of collaboration include resource optimisation and recycling to address electronic, food and packaging waste, as well as potential private-sector projects and the sharing of expertise on waste management and green economy development.

The MOU between Singapore's Ministry of Trade and Industry and Indonesia's Ministry of Energy and Mineral Resources will see both countries establish the Indonesia-Singapore Energy Workgroup. It will serve as a formal platform for officials to discuss and work together in areas that include facilitating cross-border electricity trading, financing of low-carbon energy infrastructure, and the development of new and emerging technologies such as hydrogen and carbon capture, utilisation and storage.

The agreement between Singapore's Ministry of Education and Indonesia's Ministry of Education, Culture, Research and Technology formalises regular exchanges between educators and youth, including in the area of vocational education.

It also expands opportunities for Singaporean and Indonesian students to take part in exchanges and internships to deepen their understanding of each other's country and prepare them to better engage with the region.

Over the next few years, up to 500 Indonesian school leaders will attend training workshops by NIE International and be attached to Singapore schools.

Both ministries will also launch a youth mobility agreement to enable university students to embark on internships with companies in the two countries, for up to six months.

The MOU reflects Indonesia and Singapore's joint interest to promote collaboration on projects in relation to payments innovation, and formalise cooperation across an expanded range of central bank and regulatory functions.

These include monetary policy, macro-prudential policy, financial stability, oversight of payment and settlement systems, regulatory and supervisory frameworks, and anti-money laundering and countering the financing of terrorism.