A deepening of ties

Singapore's relations with Indonesia, which has been close, are getting closer with the latest agreements to expand cooperation in tourism and air services between them. The two pacts signed in Yogyakarta last week are a measure of the broadening and deepening bilateral ties that have developed in recent years.

All things considered, the compacts will open the door wider for Singapore investors who are looking for new joint ventures in Indonesia. Whatever form the economic linkages take, they must be mutually beneficial in order not to give ground for detractors to say that Singapore is benefiting at Indonesia's expense. Businessmen must resist the temptation of short-term gains and go instead for the long haul. They must remember that Indonesia, with a population of 185 million, is a vast market with huge potential.

Singapore's growing involvement with the Indonesian economy extends beyond tourism, a fast growing sector, to manufacturing, investments and industrial parks. The bilateral economic cooperation thus rests on a broad base and, as BG Lee put it, "each project you do gives you more basis for trust and confidence on both sides". Given the commitment and groundwork laid by the two governments, it is for businessmen in both countries to make good the opportunities. The political leaders have set the bearings. It is up to them to venture further afield.

-- The Straits Times, Singapore