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View all search resultsFire, smoke and statesmanship
When choking transboundary haze pushed Singapore and Indonesia to the brink of an economic and diplomatic standoff, pragmatic leadership proved that following the money trail—not nationalist rhetoric—is the key to clearing the air.
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Foreign Minister Arrmanatha Nasir (right) shakes hands with Singapore Foreign Minister Vivian Balakrishnan after a press briefing at the Foreign Ministry's office in Central Jakarta on Oct. 27, 2026. (Reuters/Ajeng Dinar Ulfiana)
D
iplomacy in Southeast Asia is rarely tested by sudden shifts in grand strategy. More often, it is frayed by seasonal pressures, domestic politics and the volatile ecosystem of public rhetoric.
Over the past few weeks, the relationship between Indonesia and Singapore endured one of its most severe strains in recent memory.
Uncontrolled land and forest fires in Sumatra and Kalimantan blanketed Singapore and Malaysia in toxic transboundary haze, and a familiar environmental crisis quickly morphed into a bitter bilateral spat.
Yet, true to the pragmatic nature of their relationship, both nations proved this week that cooler heads can, and must, prevail. Singapore’s Foreign Minister Vivian Balakrishnan travelled to Jakarta to meet his Indonesian counterpart, Arrmanatha Nasir, and the visit marked a decisive pivot from escalation toward compromise.
At the heart of the breakthrough is an agreement to form a Bilateral Joint Task Force on Strengthening Business Responsibility. For years, Singapore has sought to penalize those responsible for burning land under its Transboundary Haze Pollution Act. Jakarta has long viewed cross-border enforcement notices and extraterritorial legal maneuvers by its smaller neighbor as an infringement on Indonesian sovereignty.
By creating a joint body focused on financial intelligence, evidence sharing, corporate registries and asset tracing, both governments have bridged the divide.
As Arrmanatha put it: “Smoke can cross borders, so can money. That is why we must follow the money trail these companies have left behind.”
