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China expresses satisfaction over ties with Indonesia

| Source: XINHUA

China expresses satisfaction over ties with Indonesia

Xinhua, Beijing

Chinese Premier Zhu Rongji on Friday expressed satisfaction over the friendly relationship between China and Indonesia which has developed in the past few years.

Speaking before a delegation of Indonesian ministers, Zhu Rongji said China-Indonesia relations have been developing smoothly in recent years.

"Exchanges and co-operation in the fields of politics, economics, trade and culture have been expanding consistently," he noted.

The entourage sent by President Megawati Soekarnoputri included Megawati's husband Taufiq Kiemas, Minister of Energy and Mineral Resources Purnomo Yusgiantoro, Minister of Industry and Trade Rini Soewandi, Minister of Resettlement and Regional Infrastructure Soenarno, Minister of Maritime Affairs and Fisheries Rokhmin Dahuri and State Minister for State Enterprises Laksamana Sukardi.

The prime minister also recalled President Jiang Zemin's meeting with Megawati at the Shanghai meetings of Asia-Pacific Economic Cooperation (APEC) forum in October.

Zhu said he appreciated the warm welcome he received during his visit to Indonesia last month.

"You have come here to implement the agreements reached by Jiang and Megawati on furthering bilateral cooperation," Zhu said.

He added that the visit showed that the Indonesian government values the development of bilateral relations between the two countries.

Zhu said China has a positive attitude toward cooperation with Indonesia, expressing the hope that the two countries would carefully study the profitability and feasibility of any joint projects.

Taufiq said that he had been entrusted by Megawati to express his country's strong willingness to develop relations with China.

A top Indonesian trade delegate was happy with a handful of potential deals exploring business opportunities, including banking and energy, after talks with Premier Zhu Rongji.

Rini said in Beijing that the Bank of China, one of the four commercial banks in China, is expected to reopen a branch in Jakarta next year, to handle increasing trade demands between the two countries.

She said the branch was closed in the 1960s because of "fewer and fewer business transactions" after the fall of Soekarno.

"Zhu said he would send a Chinese team to Jakarta next January to finalize the document," the minister was quoted as saying.

Also next January, a Chinese energy delegation is scheduled to visit Indonesia to discuss the possibilities for Chinese companies to invest in the Indonesian energy industry, she added.

Purnomo, meanwhile, said that Indonesia was considering buying Chinese oil tankers in an attempt to give it bargaining power in bidding for a US$10 billion gas supply contract for China's first liquefied natural gas (LNG) project.

He refused to reveal the details, but earlier reports have said the Indonesian side hopes to buy 20 large oil tankers from China, worth millions of US dollars.

Earlier last month, China invited seven potential suppliers from Australia, Indonesia, Iran, Malaysia, Qatar, Russia and Yemen to compete in supplying three million tons of LNG to Guangdong Province annually for at least 20 years.

Purnomo said they are still discussing with China National Offshore Oil Corp (CNOOC), the major Chinese backer of the project, further exploration and development of gas fields in Indonesia.

"If we come out on top in the bidding, they (CNOOC) would get more (opportunities)," said Purnomo.

Indonesian Tangguh LNG, a 50-50 project owned by Pertamina (Indonesian State Oil & Gas Mining Company) and BP, submitted the bid on Tuesday.

"We assure you that our price will be very competitive. We can also guarantee the safety of the long-term supply, which is very important for such a consumer as China," said Purnomo.

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