The Agreement on the Realignment of the Boundary between the Jakarta and the Singapore Flight Information Regions

1.21 pm

The Minister for Transport (Mr S Iswaran): Mr Speaker, Sir, Senior Minister and Coordinating Minister for National Security Teo Chee Hean has explained the key considerations underpinning the agreements signed at the Singapore-Indonesia Leaders' Retreat on 25 January 2022, the main elements of the agreements, their implications for our bilateral relations and the implementation process.

I will now bring Members through the specifics of the Agreement on the Realignment of the Boundary between the Jakarta Flight Information Region (FIR) and the Singapore FIR and respond to the various questions from Members on the considerations, implications and the way forward for the FIR Agreement.

Mr Speaker, Sir, let me first outline how civil air traffic is managed around the world.

Every state has its own territorial airspace over which it has sovereignty. Then, there are Flight Information Regions (FIRs), which are blocks of airspace assigned by the International Civil Aviation Organization (ICAO) to air navigation services (ANS) providers, such as the Civil Aviation Authority of Singapore (CAAS), for the purpose of managing civil air traffic. FIRs do not have to follow territorial boundaries.

The provision of ANS around the world falls into three broad models.

The first is where the state provides ANS for an FIR that is within its territorial airspace. For example, the Aeronautical Radio of Thailand Limited (Aerothai) provides ANS for Thai airspace within the Bangkok FIR.

The second is where the state provides ANS within its FIR, but the FIR extends beyond its territorial airspace. For example, Indonesia provides ANS over Christmas Island, which is part of Australia's airspace but within the Jakarta FIR. Likewise, the US provides ANS over Canadian airspace within US FIRs.

The third is where the state provides ANS in the FIR and territorial airspace of a neighbouring state. This is typically done through delegation arrangements. For example, in order to manage traffic for Geneva Airport, Switzerland provides air traffic services for French airspace that is part of the Marseille FIR through a delegation arrangement.

So, territorial airspace, FIRs and the provision of ANS. These come together across the world in different models. But regardless of the model adopted, the paramount objective is to ensure the safety and efficiency of international civil aviation in accordance with ICAO rules.

The FIR issue has been on the Indonesia-Singapore bilateral agenda for several decades. Its resolution will bring clarity not just to both countries, but also to the international civil aviation community. It would also lay the foundation for us to strengthen bilateral cooperation in the aviation sector and across our broader relationship.

Singapore and Indonesia, therefore, agreed to discuss the FIR issue as an integral part of a broader framework, endorsed by Prime Minister Lee and President Jokowi, to achieve a durable and balanced set of agreements that meets both sides' core interests.

Our aim was to: first, uphold the safety and efficiency of international civil aviation; second, meet Indonesia's desire to align the FIR boundaries to correspond with its territorial airspace; and third, accommodate current traffic and future growth of Changi and Indonesian airports.

The negotiations entailed significant involvement and commitment at all levels of Government, given the strategic, political, operational and technical considerations.

Based on the parameters endorsed by the two Leaders, Coordinating Ministers, Ministers and officials from multiple agencies were involved in the negotiations. MOT/CAAS officials, especially ANS experts, worked closely with their Indonesian counterparts to address the complex technical details, taking into account ICAO rules.

The outcome of this consultative negotiation process is an FIR Agreement that ensures the safety and efficiency of air traffic, addresses Indonesia and Singapore's interests and needs, and benefits international civil aviation.

Mr Gerald Giam asked about the air traffic arrangements under the FIR Agreement. Let me briefly take Members through the key elements.

First, realignment of the FIR boundary. The boundary between the Jakarta FIR and the Singapore FIR will be realigned to meet Indonesia's desire to realign the FIR boundaries, and largely take into account Indonesia's territorial baselines.

Second, delegation arrangement. Indonesia will delegate to Singapore the provision of ANS for the airspace closest to Changi, to meet Changi Airport's current and future needs.

Third, under the delegation arrangement, CAAS will provide ANS, such as air traffic services, publication of aeronautical information and designing of air routes within the airspace where the provision of ANS has been delegated to Singapore. The FIR Agreement also caters for civil-military cooperation in air traffic management, based on ICAO provisions.

Fourth, the delegation arrangement under the FIR Agreement is for 25 years and shall be extended by mutual consent if both sides find it beneficial to do so. Indonesia and Singapore will consult each other and ICAO prior to the end of the 25 years, to ensure safety and efficiency of international civil aviation beyond the 25 years.

Ms Poh Li San, Mr Saktiandi Supaat, Mr Melvin Yong, Mr Lim Biow Chuan and Mr Gerald Giam asked about the implications of the FIR Agreement. Miss Cheryl Chan also asked the same in a question for written response.

The FIR Agreement decisively resolves a key longstanding issue on the bilateral agenda and paves the way for closer cooperation in air traffic management and other aviation issues. It clarifies how ANS will be provided in this busy and complex airspace and ensures that air traffic flows in our region, including to and from Changi and Indonesian airports, will continue to be safe and efficient. Let me elaborate.

Every major airport in the world has a contiguous block of airspace for its arrival and departure procedures, which is essential for ensuring safety. It is necessary to deconflict aircraft when they are taking off or landing, which are critical phases of flight and when safety risks are the highest. Changi Airport, for example, had nearly 400,000 flights each year pre-COVID-19.

The FIR Agreement allows Singapore to continue providing ANS within a contiguous block of airspace which is sufficient for Changi Airport's present and future needs. It will support the continued growth and competitiveness of Singapore's air hub and aviation-related sectors.

The FIR Agreement will also ensure the safe and efficient management of traffic to Indonesian airports, including Batam, Bintan and Tanjung Pinang airports, which are in close proximity to Changi.

The international civil aviation community will also benefit. The International Air Transport Association forecasts that air traffic in the Asia-Pacific will have the highest growth globally over the next 20 years. With the FIR Agreement and closer bilateral cooperation, airlines and other aviation stakeholders will have more opportunities to tap on the future growth in air traffic in this region, grow their operations, connect more passengers, attract more investments and create more jobs in our regional aviation sector.

Mr Speaker, Sir, in short, the FIR Agreement is a significant milestone in our bilateral transport relationship with Indonesia, which will bring benefits to Singapore, Indonesia and the international civil aviation community.

Ms Poh Li San and Mr Melvin Yong asked about the implementation of the FIR Agreement. As explained by Senior Minister Teo Chee Hean, the FIR Agreement, Defence Cooperation Agreement and Extradition Treaty are to be brought into force and implemented simultaneously.

For the FIR Agreement, first, the domestic processes for both sides to ratify all three agreements have to be completed. Second, the technical teams are working through the detailed coordination procedures for the FIR Agreement, which are necessary to ensure a smooth transition in air navigation arrangements and to uphold safety and efficiency. Third, Singapore and Indonesia will jointly consult all relevant stakeholders and submit a Proposal for Amendment for the FIR boundary realignment and delegation arrangement to ICAO for approval. Fourth, once the FIR boundary realignment and delegation arrangements are approved by ICAO, Indonesia and Singapore will agree on a date to implement the FIR Agreement and for all the three agreements to enter into force together.

Mr Pritam Singh and Mr Saktiandi Supaat also asked what will happen after the 25-year duration of the FIR Agreement. Senior Minister Teo Chee Hean has spoken on this. Let me add from the civil aviation perspective.

This is a durable FIR Agreement. We will have 25 years to implement the FIR Agreement and gain experience from the new arrangements. It will allow both sides to strengthen our bilateral transport ties and it establishes a foundation for further cooperation in the provision of ANS and in other areas.

The aviation sector will continue to develop with advancements in technology and ANS procedures. As air traffic and airports grow, our operational needs and aviation standards will also evolve. All these elements will shape the circumstances under which we will make decisions in the future. Under the FIR Agreement, the delegation arrangement shall be extended by mutual consent, should both sides find it beneficial to do so. Singapore and Indonesia have agreed to consult each other and ICAO before the end of the 25 years, to ensure the safety and efficiency of international civil aviation beyond the 25-year duration.

Mr Speaker, Sir, in summary, the FIR Agreement is a key pillar of the Expanded Framework, which will advance our mutual interests.

We were able to achieve this outcome because both sides approached the negotiations with a shared commitment to uphold the safety and efficiency and support the growth of international civil aviation. It has also laid a firm foundation for closer cooperation in aviation and other areas between Indonesia and Singapore.

In closing, I would like to express our deep appreciation to the negotiating teams from Singapore and Indonesia, in particular, our MOT and CAAS officers, for their hard work in concluding the agreement and achieving an outcome that is good for Singapore, Indonesia and international civil aviation.

Mr Speaker: Clarifications, please? Mr Pritam Singh.

1.36 pm

Mr Pritam Singh (Aljunied): Thank you, Mr Speaker. I have one supplementary question as a follow-up to my Parliamentary Question, which is listed as Question No 5 in the Order Paper.

What vis-à-vis the Framework Agreement is the dispute resolution clause in the event either Singapore or Indonesia cannot come to an agreement after the end of the 25-year period?

Mr Teo Chee Hean: Mr Speaker, as I have said, our focus right now is to get the ratification done through the domestic processes of both sides. This is an indication of how both countries can work together and work their own domestic processes for the joint benefit of both countries.

Each of the agreements lasts for 25 years – the DCA and the FIR Agreement. If there are disputes, both sides will consult and reach an amicable settlement. What happens after 25 years is that the existing arrangements will continue until we reach a new agreement.

For the FIR, Singapore will certainly continue to discharge its responsibilities to provide air navigation services in a safe and efficient way for civil air traffic.

Mr Speaker: Ms Jessica Tan.

Ms Jessica Tan Soon Neo (East Coast): Thank you, Mr Speaker. I have two clarifications. On the point of what the Senior Minister has said, the focus is to get the expanded agreement in force. So, I guess the question is what is being done now to ensure that those agreements will come into force? How do we get these three agreements into force?

On another question: the Minister for Transport had indicated that these agreements, like the FIR, will benefit Changi Airport and Singapore. But could the Minister provide more information and details on how these would benefit both Changi Airport as well as Singapore?

Mr Teo Chee Hean: On bringing the three agreements into force simultaneously, as I have said in my Statement, both Prime Minister Lee and President Jokowi have expressed the desire to bring these three agreements into force as soon as possible. Each side will have to go through their own domestic ratification processes, and I do understand that Indonesia has already commenced this process. We are also going through the process on our side.

Mr Speaker: Mr S Iswaran.

Mr S Iswaran: Mr Speaker, I thank the Member for her question, which is an important one, specifically, how this agreement benefits Changi Airport. So, if I may underscore a point that I made earlier, this is an agreement that does not just benefit Changi Airport, it actually also benefits Indonesian airports, for example, Batam, Bintan and Tanjung Pinang and, perhaps most crucially, it also benefits international civil aviation on the point of ensuring its safety and efficiency.

And once we keep that as the baseline, then we can look ahead because what it means is that despite all the forecasts for growth in aviation in the Asia Pacific region, unless we are able to ensure traffic is managed well, smoothly and, most importantly, safely, we will not be able to benefit collectively or individually from that growth. So, what this agreement does is that it not only gives us clarity on an important matter for both sides but also for the international aviation community which has a strong interest in this matter.

With that as the foundation, we can then proceed to work on other important initiatives, whether it is investment in technology, infrastructure and also building closer cooperation between Indonesia and Singapore, in terms of aviation cooperation and, of course, extending beyond that into other areas.

So, I would say that, at its core, this agreement, once it has gone through the entire process and comes into force, it will provide clarity, certainty and, therefore, give confidence to all parties involved to then proceed with the necessary initiatives to prepare for the growth in aviation in our part of the world.

Mr Speaker: Mr Vikram Nair.

Mr Vikram Nair (Sembawang): Thank you, Mr Speaker. I think these agreements are very good for both Singapore and Indonesia. I just have one clarification.

The intention is for all the agreements to come into force at the same time. But if, in the ratification process, say, only one or two get ratified and one or two did not, what will happen to all three agreements in that situation?

Mr Teo Chee Hean: The agreement between both countries is to bring into force all three agreements simultaneously. There is good reason for it. It is because the negotiations were conducted concurrently and it has achieved a good balance of benefits across all three agreements. Hence, both countries have agreed that the best way to resolve these three outstanding issues is to discuss them together, come to agreements on them at the same time and then to bring them into force concurrently.

That will provide a resolution to all these three outstanding issues at the same time. I think that will bring many benefits to both countries so that it will reduce any chances of misunderstandings and provide a very strong basis for future cooperation.

I should say that in any negotiation, of course, each side would want to push for its maximum benefits.

But to have a good outcome, each side also has to look at the wider benefits, the wider interests that come from working together and arriving at an agreement, rather than not having an agreement. So, I think that in these negotiations, both sides took that view – that it is actually in our shared interest, in our enlightened self-interests, to come to an agreement on these three outstanding issues so that we can progress our bilateral relations on a broader front.

Mr Speaker: Mr Gerald Giam.

Mr Gerald Giam Yean Song (Aljunied): Sir, under this agreement, before the end of the 25 years, is Indonesia permitted to apply to ICAO to manage the airspace which is delegated to Singapore to manage if they feel that they are ready to provide air navigation services and this could include the airspace closest to Changi Airport? If so, how would the change in ANS provider affect aviation safety and security, the efficiency and the status of us as an aviation hub? Secondly, will the Government be making available the maps of the new Flight Information Regions for the public to have a better picture, literally, of the outcome of these agreements?

Mr S Iswaran: Mr Speaker, I thank the Member for his question. If I may reiterate, the delegation arrangement under the FIR Agreement is for 25 years and it also states that it shall be extended by mutual consent if both sides find it beneficial to do so. Indonesia and Singapore will consult each other and ICAO prior to the end of 25 years to ensure safety and efficiency of international civil aviation beyond the 25 years.

Therefore, this is an agreement and, at its heart, its durability is underpinned by this set of provisions. Any deviations from this will have to be resolved through bilateral discussions and consultation and, ultimately, approval from ICAO, which will also involve consultation with stakeholders. So, I think it would be premature to consider any other alternatives. At this point, our focus is to bring these agreements into force, operationalise them. Because many of the questions that are being posed are hypothetical. Because we need to implement them, understand them fully and appreciate the value and the impact they have on the way we manage collectively air navigation services. Then, that will inform future decisions.

On the maps itself, I think this is something that will have to be through bilateral consultation, the decision. At this point, we are not releasing the maps.

Mr Speaker: Ms Poh Li San.

Ms Poh Li San (Sembawang): Thank you, Mr Speaker. I have a question for the Minister for Transport. Specific to the arrangement of the delegation of the FIR, may I know what are the benefits direct to Singapore?

Mr S Iswaran: If I may paraphrase the Member's question so that I get it clearly, it is really, specifically, how this benefits Changi Airport and Singapore, is that right?

Ms Poh Li San: That is right, Minister.

Mr S Iswaran: So, as I have said, there is a broader value that this agreement brings for the international civil aviation. Without that assurance, it is really difficult to contemplate how we can move forward for Changi Airport and Singapore, because, ultimately, we are an international aviation hub and, central to that, is our ability to ensure the aircraft landings and take-offs in Changi Airport can be done safely and efficiently. I would say that this is not a unique consideration for Singapore. All airports around the world, especially major aviation hubs, will take this into account, and, in fact, it is central. It would also be the case for Indonesia and its airports. So, whilst we are talking and focusing on Changi Airport, in particular, and our needs, I want to emphasise that this actually brings benefits for all parties, including Indonesian airports.

So, specifically for us, what it means is, with that assurance, we can now focus on also a range of other initiatives which will help to enhance the services that we can provide in terms of air navigation but also others to support the broader aviation sector in Singapore. It also means that in our discussions with aviation sector stakeholders, including potential investors and companies which want to set up operations here, we are now able to give them greater clarity on the matter and we can move forward on that basis. We are, as the Member by virtue of her background would be aware, looking also at various investments in technology and so on, which will enable us to enhance the quality of services that we can provide from Changi Airport. This, again, is going to be an important part of the work going forward.

So, if I may go back to what I said in response to an earlier question, whilst the details will evolve as we see the situation developing, the key thing is that this agreement, at its foundation, gives us the clarity, certainty and confidence to move forward on many issues, not just in the interest of Changi Airport, but also in our bilateral interests in terms of aviation cooperation and how we can better serve the international aviation community as air travel grows in Asia.

Mr Speaker: Mr Saktiandi Supaat.

Mr Saktiandi Supaat (Bishan-Toa Payoh): Mr Speaker, I would like to thank Senior Minister Teo Che Hean and the Minister for Transport for the Ministerial Statements and I think it is useful also to say thanks to the officers of the various agencies and Ministries for making this agreement a possibility between both Singapore and Indonesia. I have two supplementary questions.

The first is in relation to what the Minister answered just now broadly. In terms of the FIR Agreement, how does it essentially improve bilateral transport cooperation between Singapore and Indonesia, particularly bilateral aviation ties, which Minister has mentioned, but going forward beyond airports?

My second clarification is with regard to this agreement. It definitely provides a good opportunity for both Singapore and Indonesia to work together better within the 25 years and I think also beyond the 25 years. My clarification is on how we can actually see this as a positive outlook as we look forward in the post-25 year phase as technology changes and, particularly, in the area of air traffic control safety for both countries, Singapore and Indonesia.

Mr S Iswaran: Mr Speaker, I thank the Member for his words of appreciation for the various officials who have been engaged in, as Senior Minister Teo described, extensive and intensive discussions on this very important matter and it has been a multi-agency effort involving many Ministries, the Attorney-General's Chambers, and I think it is important that this House puts on record our deep appreciation for their signal contributions to this outcome.

Secondly, as I respond to the Member's question on bilateral ties, I am reminded of today's date and its significance for bilateral relations. I think in that spirit, it is important that we see this as an opportunity to build strong, durable and mutually beneficial ties between Indonesia and Singapore. Of course, specifically, in the context of aviation, because we are talking about the FIR Agreement here, but really as a foundation for doing more together.

So, what it means is understanding – and, in fact, I made this point in my Ministerial Statement. One of the reasons we were able to get to this outcome is because both sides had a shared commitment to ensuring the safety and efficiency of international civil aviation. I think that is key because it means we understand that this is the paramount objective.

Then we have our respective interests that we need to then reconcile. That is what this process has been about. It has been a consultative process, there have been discussions over an extended period and we have now arrived at an outcome that we believe is good for Indonesia, Singapore and international civil aviation.

Looking ahead, I think what it means is it allows both sides to now focus on operationalising the arrangement, getting more familiar with each other in terms of how we can cooperate further, building confidence and building trust. That is essential because, as Senior Minister Teo made it very clear, we are neighbours, and we will be neighbours well beyond 25 years. So, it is important that at the foundation of our relationship, we have that confidence and trust. And that is the basis on which we want to go forward. So, we will be working on these various initiatives and, I might add that it is very hard to anticipate the trajectory of civil aviation over two and a half decades. A lot has happened in the last 25 years. Indeed, a lot has happened in the last five, six years and we must expect a lot more may happen in the next 25 years.

If I may just give you one example. We have the Singapore Airshow on and I met with some aviation officials this morning and one of the focal points is what in the industry they call "network operational efficiencies". This is really about how, between the aircraft avionics and the air navigation service provisions, we can optimise so as to minimise the impediments to smooth flows, because when you have those impediments caused by congestion, weather events and so on, it means aircraft have to circle, burn extra fuel and so on, and it takes on an even more significant hue when we consider these sorts of matters in the context of the broader climate change challenge and the kind of sustainability initiatives that we want to work on. I am just citing that as one example of how we can work together and there are many other areas. But this agreement creates the foundation upon which we can build that stronger, bilateral partnership.

Mr Speaker: Mr Seah Kian Peng.

Mr Seah Kian Peng (Marine Parade): I just wanted to say that I think it is a great outcome for both countries and, given that it has taken us so much time to get to where we are, as the duration of the three agreements are about 25 years, I wonder whether it is possible that we could have a situation where it is an auto renewal, rather than a review followed by a renewal. I am just changing it slightly with a view that we want to secure the future for both countries and for the global community, particularly for global travel. Something for consideration.

Mr S Iswaran: Mr Speaker, I thank the Member for his question and I understand fully the intent behind it. I would say we have an agreement today. It is a good agreement. I think the first and most important thing is for us to make sure they are ratified and they enter into force. And then, I think we have the time and opportunity to work on a whole slew of initiatives to foster that closer cooperation and understanding.

As I pointed out in my Ministerial Statement, there are all kinds of partnerships in the provision of air navigation services around the world. So, I would not preclude any option going forward, but the basis for ideas like what the Member has suggested, really is that it must be premised on first having a close understanding and cooperation between all the parties concerned and this must be borne out by experience that it can work to mutual benefit and accommodate the needs of both sides well.

So, I think we need to focus on this first. I would not preclude alternative structures going forward. But neither do I want to hasten into those sorts of discussions at this point. I think, in general, from a Government point of view, what we have today is a good agreement. Agreements can always be better, but the converse can also be true. So, it is about making sure what we have works and works well for all parties. I think that would then give us the basis on which to build for the future.

2.01 pm

Mr Speaker: Order. Introduction of Government Bills. Minister of State Alvin Tan.