Indonesia, India sign defense agreement
JAKARTA (JP): Indonesia and India on Thursday signed a defense agreement aimed at boosting various areas of cooperation including the exchange of military instructors and arms sales.
The agreement signed by Indonesian defense minister Mahfud MD and the Indian Minister of State for External Affairs Ajit Kumar Panja was witnessed by President Abdurrahman Wahid and the Indian Prime Minister Atal Bihari Vajpayee at Merdeka Palace.
Mahfud later told journalists that the agreement is not a defense pact.
"It is a cooperation in defense activities, so it isn't a defense pact," he said.
When asked who would likely be the primary purchaser of arms between the two, Mahfud replied: "Quite honestly, we would probably be buying more from them."
India is one of the world's leading arms producers.
Indonesia in the past few years has been in great need of replenishing its arms stock, particularly since the United States imposed an arms embargo.
The Indian Prime Minister arrived in Jakarta on Wednesday, becoming the first Indian prime minister to visit Indonesia in 14 years.
On Friday he will fly to the holiday resort island of Bali before heading home on Sunday.
In a joint press conference held by the two leaders, Abdurrahman stressed the long-standing relationship between the two countries and the bright prospects ahead.
"As neighbors, we have many things in common, especially in politics. Therefore, we have to share our experiences to able to face future challenges," said Abdurrahman who visited India early last year.
Vajpayee said that Indonesia and India need to further explore their potentials.
"We've agreed that both leaders should meet regularly," Vajpayee said.
Business
Later in the afternoon, Memorandums of Understanding (MoUs) were signed to further promote economic relations between the two countries.
The MoU's were signed during a business luncheon hosted by the Indonesian Chamber of Commerce and Industry (Kadin) in honor of Prime Minister Vajpayee.
The agreements cover cooperation in information technology, the construction of a sugar mill, the development of offshore oil rigs and oil and gas drilling.
Indonesian Chamber of Commerce and Industry chairman Aburizal Bakrie signed an agreement in the information technology sector with the president of the Federation of Indian Chambers of Commerce and Industry (FICCI), Chirayu R. Amin.
PT Aditya Indo Mitra Niaga and the Indian Sugar and General Engineering Corporation (ISGEC) signed an agreement to build a sugar mill in Lampung, while India's Shiv Vani Universal Ltd. and Indonesia's PT Gunanusa Utama Fabricators agreed to cooperate in the construction of offshore oil rigs in India.
Shiv Vani also agreed to cooperate with PT Gemilang Technodrill Paripurna in the development of oil and gas drilling projects in Indonesia and with PT Shillelagh Marine Construction for the marketing of its offshore oil drilling equipment in India, the Middle East, and Iran.
Indonesian Minister of Industry and Trade Luhut Binsar Panjaitan who witnessed the signing said the cooperation between Indonesia and India was very promising.
He said cooperation in the information technology field was especially promising as India's information technology industry is quite advanced.
Luhut said India currently was holding 60 percent of the world's software market, and if Indonesia hoped to gain at least 5 percent of the market in six years, it would have to learn from India's experience.
India's Minister of State for Commerce and Industry Omar Abdullah hoped the business people of both countries would be able to resolve problems that stand in the way of business cooperation for the sake of strengthening bilateral economic ties.
Bilateral trade between the two countries totaled US$1.2 billion in 1999, and about $1.6 billion in 2000.
According to the Indonesian Central Bureau of Statistics (BPS), Indonesia's exports to India totaled $923.9 million in 1999, while imports totaled $275.5 million during the same period.
Indonesian exports to India include vegetable fats and oils, petroleum products, coal, copper ore, fruits and nuts, textile yarn, hydrocarbon, pulp and waste paper, glass, and spices.
Imports from India include animals fodder, steel, aluminum, synthetic fiber, electrical appliances, and pharmaceutical products. (tnt/hdn/dja)