HAZE

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HAZE:

(Implications on bilateral ties between Singapore and Indonesia): 5.

Ms Lee Bee Wah asked the Minister for Foreign Affairs what implications does the haze issue have on bilateral ties between Singapore and Indonesia.

The Second Minister for Foreign Affairs (Mr Raymond Lim Siang Keat): Mr Speaker, Sir, Indonesia and Singapore are ASEAN partners with a multi-faceted relationship and many common interests. Both of us agree that the haze is a serious transboundary problem with very harmful effects - on Singapore and other countries neighbouring Indonesia, and even more so on Indonesia itself. Hence, there should be no reason for the haze issue to affect relations between Singapore and Indonesia.

Members of the House would nonetheless have read in our newspapers about the recent exchange of correspondence between our Ambassador in Jakarta and the Indonesian Industry Minister, following his decision to absent himself from the Joint Steering Committee meeting on 3rd November to discuss the implementation of our Special Economic Zones (SEZ) initiative in Batam, Bintan and Karimun. He was protesting against

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Singapore’s statement on the haze problem at the United Nations. We have explained our position to the Indonesian government and the Industry Minister himself, and this has been carried widely in the media.

Mr Speaker, Sir, the haze has affected the health and economic and social activities of millions of people and communities in our region. Beyond our region, the haze has also aggravated the problem of global climate change. World-wide deforestation from burning and cutting alone is responsible for 20% of global greenhouse gas emissions. The fires in 1997-98, the worst on record, contributed 22% (over 700 million metric tons) of the world's carbon dioxide production that year. According to experts at the Centre for International Forestry Research (CIFOR) in Bogor, Indonesia's peatlands contain 21% of the earth's land-based carbon. Indonesia's 1997 peatland fires alone had accounted for 60% of the haze. Unless we ensure that there are no more extensive peatland fires in the future, all that carbon will end up as greenhouse gas.

The economic cost from the annual haze should not be overlooked. According to the ASEAN Secretariat's Environment and Disaster Management Centre, the 1997-98 fires cost regional economies a staggering US$9 billion. As MM Lee pointed out recently, the haze will drive foreign investments away from the entire region, including Indonesia and Singapore.

In view of the very serious and far-reaching effects of the haze, it would not have been credible for ASEAN to remain silent on this issue at the United Nations. The members of the UN have a profound interest in this issue because an environmental problem of this scale has global implications. Singapore had strongly urged our ASEAN partners to make a joint statement on the haze.

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Unfortunately, the Indonesian representatives in the UN did not want the haze issue mentioned at all. Hence, we had no choice but to make our own statement. We made a factual statement which acknowledged the commitments and efforts made by Indonesia and other countries. Our statement also aimed to present a comprehensive and balanced appraisal of the issue, including pointing out some of the more problematic issues that remain.

The haze has already afflicted our region for 10 years. The problem has persisted despite efforts by Indonesia and other regional countries. Neither Indonesia nor ASEAN can solve this problem without international support. This is a major environmental problem that we can only overcome with full international support. Moreover, there is urgency to find a speedy and lasting solution as meteorological experts have warned that the haze could be far worse next year if the El Nino weather effect returns. We must take these warnings seriously. That is why Singapore felt compelled to take up the issue at the UN to help mobilise international expertise and resources.

The recent ASEAN Ministerial Meeting on the Environment (AMME) in Cebu (9-10 November 2006) has endorsed a good and comprehensive Plan of Action, which Minister Yaacob had touched on earlier. This includes a high-level international conference, which would be hosted by Indonesia in the coming weeks to mobilise international support and assistance. I am confident that Singapore and Indonesia will be able to work together as well as with ASEAN and the international community, including UN agencies, to find a lasting solution to this very serious international environmental problem.

Mr Speaker, Sir, it is heartening that Indonesian President Susilo Bambang

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Yudhoyono understands the severity of this problem, really a problem he inherited from the past. In April 2006, President Yudhoyono declared war on haze. President Yudhoyono had also told PM Lee last month that he was determined in resolving the haze problem. Last week, President Yudhoyono wrote to update PM Lee on Indonesia's ongoing efforts to tackle the haze issue, including ratification of the ASEAN Agreement on Transboundary Haze Pollution. We appreciate President Yudhoyono's efforts. PM Lee has since replied to support President Yudhoyono's efforts and initiatives. I believe the forthcoming APEC Economic Leaders' Meeting in Hanoi on 18-19 November 2006 and the ASEAN Leaders' Summit on 11-13 December 2006 in Cebu will provide good opportunities for this issue to be discussed further.