Indonesia, India sign defense agreement<\/p>\n
JAKARTA (JP): Indonesia and India on Thursday signed a defense
\nagreement aimed at boosting various areas of cooperation
\nincluding the exchange of military instructors and arms sales.<\/p>\n
The agreement signed by Indonesian defense minister Mahfud MD
\nand the Indian Minister of State for External Affairs Ajit Kumar
\nPanja was witnessed by President Abdurrahman Wahid and the Indian
\nPrime Minister Atal Bihari Vajpayee at Merdeka Palace.<\/p>\n
Mahfud later told journalists that the agreement is not a
\ndefense pact.<\/p>\n
\"It is a cooperation in defense activities, so it isn't a
\ndefense pact,\" he said.<\/p>\n
When asked who would likely be the primary purchaser of arms
\nbetween the two, Mahfud replied: \"Quite honestly, we would
\nprobably be buying more from them.\"<\/p>\n
India is one of the world's leading arms producers.<\/p>\n
Indonesia in the past few years has been in great need of
\nreplenishing its arms stock, particularly since the United States
\nimposed an arms embargo.<\/p>\n
The Indian Prime Minister arrived in Jakarta on Wednesday,
\nbecoming the first Indian prime minister to visit Indonesia in 14
\nyears.<\/p>\n
On Friday he will fly to the holiday resort island of Bali
\nbefore heading home on Sunday.<\/p>\n
In a joint press conference held by the two leaders,
\nAbdurrahman stressed the long-standing relationship between the
\ntwo countries and the bright prospects ahead.<\/p>\n
\"As neighbors, we have many things in common, especially in
\npolitics. Therefore, we have to share our experiences to able to
\nface future challenges,\" said Abdurrahman who visited India early
\nlast year.<\/p>\n
Vajpayee said that Indonesia and India need to further explore
\ntheir potentials.<\/p>\n
\"We've agreed that both leaders should meet regularly,\"
\nVajpayee said.<\/p>\n
Business<\/p>\n
Later in the afternoon, Memorandums of Understanding (MoUs)
\nwere signed to further promote economic relations between the two
\ncountries.<\/p>\n
The MoU's were signed during a business luncheon hosted by the
\nIndonesian Chamber of Commerce and Industry (Kadin) in honor of
\nPrime Minister Vajpayee.<\/p>\n
The agreements cover cooperation in information technology,
\nthe construction of a sugar mill, the development of offshore oil
\nrigs and oil and gas drilling.<\/p>\n
Indonesian Chamber of Commerce and Industry chairman Aburizal
\nBakrie signed an agreement in the information technology sector
\nwith the president of the Federation of Indian Chambers of
\nCommerce and Industry (FICCI), Chirayu R. Amin.<\/p>\n
PT Aditya Indo Mitra Niaga and the Indian Sugar and General
\nEngineering Corporation (ISGEC) signed an agreement to build a
\nsugar mill in Lampung, while India's Shiv Vani Universal Ltd. and
\nIndonesia's PT Gunanusa Utama Fabricators agreed to cooperate in
\nthe construction of offshore oil rigs in India.<\/p>\n
Shiv Vani also agreed to cooperate with PT Gemilang
\nTechnodrill Paripurna in the development of oil and gas drilling
\nprojects in Indonesia and with PT Shillelagh Marine Construction
\nfor the marketing of its offshore oil drilling equipment in
\nIndia, the Middle East, and Iran.<\/p>\n
Indonesian Minister of Industry and Trade Luhut Binsar
\nPanjaitan who witnessed the signing said the cooperation between
\nIndonesia and India was very promising.<\/p>\n
He said cooperation in the information technology field was
\nespecially promising as India's information technology industry
\nis quite advanced.<\/p>\n
Luhut said India currently was holding 60 percent of the
\nworld's software market, and if Indonesia hoped to gain at least
\n5 percent of the market in six years, it would have to learn from
\nIndia's experience.<\/p>\n
India's Minister of State for Commerce and Industry Omar
\nAbdullah hoped the business people of both countries would be
\nable to resolve problems that stand in the way of business
\ncooperation for the sake of strengthening bilateral economic
\nties.<\/p>\n
Bilateral trade between the two countries totaled US$1.2
\nbillion in 1999, and about $1.6 billion in 2000.<\/p>\n
According to the Indonesian Central Bureau of Statistics
\n(BPS), Indonesia's exports to India totaled $923.9 million in
\n1999, while imports totaled $275.5 million during the same
\nperiod.<\/p>\n
Indonesian exports to India include vegetable fats and oils,
\npetroleum products, coal, copper ore, fruits and nuts, textile
\nyarn, hydrocarbon, pulp and waste paper, glass, and spices.<\/p>\n
Imports from India include animals fodder, steel, aluminum,
\nsynthetic fiber, electrical appliances, and pharmaceutical
\nproducts. (tnt\/hdn\/dja)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesia-india-sign-defense-agreement-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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