Indonesian Political, Business & Finance News

Laos, Indonesia promise to boost economic ties

| Source: JP

Laos, Indonesia promise to boost economic ties

JAKARTA (JP): Indonesia and Laos expressed their commitment to
expand economic ties yesterday and confidence that bilateral
relations would continue to grow given the absence of any
impeding factors.

During President Soeharto's meetings with Laotian President
Nouhak Phoumsavanh and, later, Prime Minister Khamtay Siphandone,
the two sides agreed that efforts should be made to boost the
economic side of relations.

Soeharto was in Vientiane yesterday on the second-leg of a
three-nation tour which also includes Cambodia and Myanmar.

The tour is seen by many observers as a precursor to the three
countries' impending admission into the Association of Southeast
Asian Nations (ASEAN).

While officials have declined to declare the exact timing of
the admission of new members, many observers believe it will
occur later this year, either at the ASEAN Ministerial Meeting in
July or at the ASEAN commemorative summit in December. Both
events are to be held in Kuala Lumpur.

Formed in 1967, ASEAN currently groups Brunei, Indonesia,
Malaysia, the Philippines, Singapore, Thailand and Vietnam.

Appreciation

Indonesia's Minister/State Secretary Moerdiono said the
Laotian leaders had expressed their appreciation at Indonesia's
strong support for Laos' entry into the association.

He added that Soeharto's first ever visit to Laos is seen by
both sides as historic, and is expected to help further
strengthen relations between the two southeast Asian countries.

Soeharto arrived in Vientiane Thursday after a three-day stay
in Phnom Penh. He is scheduled to fly to Yangon later today and
return to Jakarta on Sunday.

Soeharto's 46-person delegation on his week-long tour includes
Moerdiono, Minister of Foreign Affairs Ali Alatas, his daughter
Siti Hardiyanti Rukmana and son-in-law Prabowo Subianto.

After his talks with the Laotian President and Prime Minister
yesterday, Soeharto witnessed the signing of Memorandums of
Understandings (MOU), which would be the first step to
strengthened economic relations.

As reported by Antara, the MOUs were signed by Alatas and
Laotian foreign minister Somsavat Lengsavadh and cover
agriculture and forestry cooperation.

Moerdiono said Laos was interested in Indonesia's successful
development of its intensive agriculture sector.

Recently 15 Laotian farmers came to Indonesia on a work-study
program to learn more about the farming techniques. Moerdiono
added that Laos was also interested in learning more about the
fisheries sector.

Alatas said one area of cooperation that had been agreed on
was a joint venture project to set up a cement factory. However,
the foreign minister would not elaborate further, saying only
that the project now had to be followed up by the private sector.
(mds)

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