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Singapore, Indonesia Ready to Address Bilateral Issues Including Haze, Minister Says

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Singapore and Indonesia are prepared to do what is necessary to manage their differences over transboundary haze, energy supplies, and other bilateral issues, Singaporean Foreign Minister Vivian Balakrishnan said yesterday.

Speaking with the press in Jakarta after a meeting with President Prabowo Subianto at his home in Bogor, West Java, the Singaporean envoy said that “communication has occurred at the highest level” between Prime Minister Lawrence Wong and Prabowo in recent weeks, according to the official transcript of his comments.

“It sets the political commitment on both sides to do what is necessary, and now we’ll have to implement those plans, execute that commitment,” Balakrishnan said. He did not give further details on what he discussed with Prabowo.

The two neighbors have experienced growing friction over the past several weeks over a range of bilateral issues. Among the most pressing are the haze caused by raging forest and peatland fires in Indonesia, which have pushed air pollution levels in Singapore to hazardous levels. Singaporeans have become increasingly frustrated by the apparent inaction of the Indonesian authorities to respond to, and prevent, the fires, which are an annual occurrence.

There have also been tensions related to the recent threat of global index provider MSCI to downgrade Indonesia to “Standalone Market” status due to a lack of transparency in its stock market – in particular, comments by a former minister that Singaporean state investment firms had pressured MSCI to downgrade the country. Finally, earlier this week, Indonesia began reducing natural gas exports to Singapore in order to divert more supplies to domestic electricity needs, to the chagrin of the Singaporean government.

All of these issues have prompted tense words from leaders in both countries. On October 15, as Singapore choked under some of its worst air pollution in more than a decade, Prime Minister Wong said that the government was looking into Indonesian companies that could be responsible for the fires in Indonesia, and potentially take action against them under its Transboundary Haze Pollution Act. Senior Minister K Shanmugam said on October 19 that Singapore will “sustain pressure” on these companies even after the haze passes.

Similarly, on the question of the gas export cut, Wong said on Sunday that Singapore expects all parties who have signed commercial contracts for gas supplies to “honor their commitments.” He added that Singapore’s gas importer will take the steps needed to protect its rights and interests. The Indonesian government claims that the 9 percent reduction was within contractual limits, but Energy Minister Bahlil Lahadalia did not help matters when he suggested that Jakarta might cut off energy supplies to nations that did not respect Indonesia – a possible reference to Singapore’s statements about the haze issue.

Balakrishnan’s three-day visit, which concludes today, is aimed at preventing these diplomatic spot fires from developing into a more serious bilateral conflagration. On Tuesday, he met with Indonesian Foreign Minister Arrmanatha Nasir, after which the two sides announced a joint task force to coordinate investigations into companies responsible for setting the fires, which have taken place across Borneo and Sumatra.

After the meeting, Arrmanatha told the press that addressing the haze issue was a “top national priority” for Prabowo, adding that “no border should shield those who profit from burning our forests.”

Speaking yesterday, Balakrishnan said that he was not in a position to provide details about the composition and staffing of the task force, but said that it would “deal with this issue, exchange information, to facilitate each authority’s work in our respective jurisdictions.” He added that “given the commitment at the senior level for both countries, we will get this done quickly, promptly, and effectively.”

Singapore and Indonesia also announced a new hotline to handle bilateral differences.

Arrmanatha told the press that the Indonesia-Singapore relationship is “mature enough” that leaders could speak candidly with one another. “What matters is not what we differ, but how we resolve our differences constructively, respectfully, and openly,” he said. Balakrishnan described the talks with Indonesia’s new foreign minister as “very fruitful and sincere.”

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