Ties with Singapore under new PM Lee

Jusuf Wanandi, Jakarta

There are basically two ways to look at Singapore from an Indonesian point of view. One is that of Habibie, who once described Singapore as a red dot in the regional map of South East Asia. As such she is expected to behave, especially towards "big brother" Indonesia, and should not pretend to "teach" others in the region of what is good for them.

The other is the view of Juwono Soedarsono, Indonesia's brightest scholar, who was a Minister of Defense under Habibie, who recognized Singapore's positive role to assist Indonesia in overcoming the crisis. He described the role of Singapore as a fast and modern speed boat that can help in giving direction to the rickety freight ship which is Indonesia, that is big but old and full of leaks. He considers Singapore as an important hub, a city state of the world, that can play a very important role as an "interlocutor" to the international community. This role is important to Indonesia's recovery from the economic (and political) crisis in this age of globalization.

Habibie's view was partly based on a sense of "jealousy" of Singapore's success to becoming a first world one within one generation. This view has racial overtones and perhaps has something to do with his view on the position of Sino- Indonesians, who are seen as "foreigners" that are "milking" the richness of Indonesia. So long as such a view remains prevalent among Indonesian leaders, this could affect Indonesia's relation with Singapore.

It is encouraging to observe that the situation of Sino- Indonesians in the country is changing. There is now greater appreciation for their customs and culture than ever before under Soeharto or Habibie. Moreover, the vital role they play in the society, particularly in the economy, is gradually recognised. However, this is not yet completely the public view of the average Indonesian. As long as the discrepancy in economic wealth is there, this unfair view will be prevalent although it will remain below the surface.

We might be envious about leadership change in Singapore that has been better prepared. Developments in Indonesia today are less certain and less orderly, but this is rather exciting. Indonesia is in a democratic frenzy after 40 years of authoritarian rule under Sukarno (8 years) and Soeharto (32 years).

Thus, an orderly transfer is less assured, even if there is willingness to do so, because the diverse communities are trying to assert themselves. That is why the direct election of the president is so important for Indonesia. We should congratulate Singapore not only on the smooth transfer of leadership, but more so because of the good governance that they have practiced and is likely to continue under PM Lee Hsien Loong. This has been ingrained by the Senior Leader Lee Kuan Yew, founder of modern Singapore as well as due to the well-established rule of law and institutions.

The former PM (now senior Minister) Goh Chock Tong has further strengthened the environment for governance because of his openness and empathy as well as compassion for all Singaporeans, especially the small and the one relatively behind. PM Lee Hsien Loong might want to emphasize other aspects because he has new challenges to face.

There are two most important challenges.

First, to fulfill the expectations of a new and younger generation, influenced by globalization and especially the West. This is crucial to Singapore's future, since she has to move up the ladder in her economic development and global competition. That means that she has to be able to nurture creative thinkers and doers. For that she has to provide greater space for freedom of expressions.

They also have to get more opportunities as entrepreneurs because otherwise they cannot compete in the global world, which has become Singapore's main challenge. That also means that the dominance of her state enterprises should be phased out, perhaps done rather in haste than slowly, because talent cannot wait and opportunities could not be postponed for too long.

This is not an easy job and the new leadership has to be decisive and resolute, especially because many PAP cadres are involved in the public companies. When PM Lee was DPM and Chief of the Commissions he had demonstrated his wherewithal to overcome two economic crises in 10 years. He might be the only leader that could do it for Singapore.

Second, and this is related to the first issue, is rising expectations, which have been there for some time. The PAP government has promised that they are going to deliver the goods, and in turn the people have to cooperate with their policies, including acceptance of some limitations of political freedoms. Two caveats are necessary here for PM Lee. The Singapore economy, being dependent on the global economy and the regional economies, will have to be open to competition and the topsy turvy of the global economy.

Thus, its regional aspects have to be expanded as well. Relations with Indonesia have greatly improved despite some political reactions to the purchase of the assets of former conglomerates and state enterprises (such as banks and telecommunications). However, this is not serious and could be explained to the Indonesian public. Singapore has to be more attentive and patient with the Indonesian public. Her regional expansion is now also happening with Malaysia under PM Badawi, who has created a more normal and close relationship with the Singaporean leadership, also with PM Lee at the helm now.

Indonesia should welcome Singapore's involvement in the country's development. Because this means that trust in Indonesia from a very conservative government and a conservative private sector like Singapore might be followed by other foreign businesses in the near future.

The second caveat is the need for greater attention and compassion to the less fortunate ones in Singapore. They are there, and PM Goh has given a lot of flexibilities for them in his policies. It is most important for PM Lee to continue this policy. This is all the more so, because PM Lee is seen as being too intellectual and logical.

What about Indonesia-Singapore bilateral relations? The relations have never been better. However, the relationship needs to be strengthened by promoting greater relations between the two people of all layers. This could be done through many exchanges, visits, functional cooperation and effort to reach out to the youth, politicians, parliamentarians, NGOs, artists, business, intellectuals, think tanks etc. It will be a mistake for Singapore to think that relations between the two governments alone could ever be adequate. This is certainly true with regard to the Indonesian side that is so much more diverse.

It is good that the Singapore government is providing increasing numbers of scholarships to Indonesians at the tertiary level and provides assistance in health care by sending medical teams to Riau and other poor parts of Indonesian such as Nusa Tenggara Timur. These should be multiplied and need to be better explained to the wider public.

Outstanding bilateral problems, such as the extradition agreement and the delineation of the sea border, should be worked out as soon as possible, and should be resolved soonest.

The writer is a cofounder and member of the board of trustees of the Centre for Strategic and International Studies (CSIS).