Indonesia says Singapore wants to retain laundered money

Indonesia says Singapore wants to retain laundered money

Indonesia says Singapore wants to retain laundered money

Posted 28 February 2007, 18:38 AEDT

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.