Australia and Indonesia sign cooperation pacts

Australia and Indonesia sign cooperation pacts

CANBERRA (Agencies): Australia and Indonesia signed agreements here yesterday aimed at boosting cooperation and information exchanges between the two neighbors' finance industries.

Australian Treasurer Peter Costello and visiting Indonesian Finance Minister Mar'ie Mumammad signed the umbrella agreement.

Similar memoranda of understanding were also signed yesterday by pension, insurance and accounting and actuary bodies from the two neighboring nations.

Mar'ie said in a statement he hoped the pact would "facilitate the exchange of ideas, materials, expertise and personnel in the areas of insurance companies, pension funds and accounting practices".

The two ministers said the agreement would help boost training cooperation.

Costello and Mar'ie told reporters at the signing ceremony that similar cooperation arrangements were being negotiated by the Australian and Indonesian stock exchanges and banking sectors.

"The memorandum of understanding is a strong signal for more business cooperation, more investment and more joint ventures between firms in Australia and Indonesia," Costello said.

Mar'ie said Indonesia was eager to develop viable insurance and pension schemes while its population was relatively young to avoid the crises facing several European nations with rapidly aging populations.

Australian Prime Minister John Howard met his Indonesian counterpart President Soeharto in Jakarta last week.

In their first meeting since Australia's coalition government won office in March, Howard reaffirmed the importance of a good relationship with Indonesia.