Singapore's demands that Indonesia hand over alleged Muslim terrorists and Indonesia's riposte that it would be happy to if extradition was allowed, reflect a long-standing rift between the two countries.
Indonesian Foreign Minister Hassan Wirayuda said on Wednesday that while he 'warmly welcomed' Singapore's request for the extradition of suspects, there was no extradition treaty.
'Indonesia is the one which has been pushing Singapore since 1974 for this issue to be discussed. It is the Singaporean government which has refused to talk about this matter the whole time,' Mr Hassan said.
Jakarta believes Singapore's reluctance to sign an extradition treaty stems from the financial benefits it gains as a repository for large amounts of unexplained wealth from Chinese Indonesians.
The wealthiest Indonesians have long used Singapore as a hiding place for savings, a safe city to send their children to school and a good market to invest in property.
Several leading Indonesian tycoons have gone further since 1997, living in Singapore in self-imposed exile until Jakarta tires of trying to force them into repaying massive debts now held by Indonesia's Bank Restructuring Agency. They do so knowing they cannot be extradited.
The Indonesian line about extradition surfaced in another context recently when newly independent East Timor named the generals and policemen it wanted to put on trial.