SINGAPORE (AP) - Singapore said Monday an extradition treaty with Indonesia will help crime-fighting cooperation, but could create problems as the two neighbors scrutinize each other's judicial processes.
Some believe Singapore is a haven for up to 200 Indonesians suspected of fleeing the country with billions of dollars (euros) in stolen state funds as the banking system collapsed during Asia's 1997-98 financial crisis.
Indonesia's attorney general has said his country will try to extradite 15 business executives believed to have taken advantage of Singapore's strict bank secrecy laws to hide the money.
But concerns have been raised that the extradition pact may be ineffective in Singapore, because an unknown number of suspects there have changed nationalities.
The treaty still needs approval by both countries' legislatures.
A senior Singapore official said it would strengthen cooperation on tackling terrorism and other crimes _ but would require each country to review the other's law enforcement processes.
The signing "has removed a bone of contention in bilateral relations. But it may also create other problems," Senior Minister of State for Foreign Affairs Zainul Abidin Rasheed told Parliament.
"Indonesia's police and judicial processes will be subject to review by our judges, and vice versa," he said. He did not specify what problems he thought this might cause.
The pact specifies 31 crimes, from bribery to terrorism financing, Indonesian President Susilo Bambang Yudhoyono said during the signing.
Singapore-Indonesia ties have been tested in recent months by Indonesia's steps to ban sand exports, citing environmental concerns. Indonesia is the main supplier of sand _ used to make concrete _ in wealthy buy resource-poor Singapore.