Indonesian Political, Business & Finance News

Pakistan, RI to sign trade, counterterror pacts

| Source: JP

Pakistan, RI to sign trade, counterterror pacts

Associated Press, Islamabad

The leaders of the world's two largest Muslim countries,
Pakistan and Indonesia, held talks Monday and were set to witness
the signing of trade and counterterrorism agreements, the state
news agency reported.

But an assassination attempt the night before on Pakistani
President Pervez Musharraf overshadowed the meeting with
Indonesian President Megawati Soekarnoputri, who arrived on
Sunday for her first visit to the country.

Two powerful bombs planted under a bridge in Rawalpindi, a
city near Islamabad, exploded shortly after Musharraf's motorcade
passed over it on Sunday evening.

No one claimed responsibility for the attack, which caused no
injuries, but police went on alert across Pakistan.

On Monday, Megawati held talks with Musharraf in Islamabad on
a range of issues including the fight against terrorism, the
situation in South Asia and the profile of Islam in the world,
the state Associated Press of Pakistan reported.

On Tuesday, the two countries are expected to sign a
memorandum of understanding on countering terrorism and a trade
agreement, and begin the process of setting up a bilateral system
of preferential tariffs, the report said.

"We would like to gradually move to establishing a free trade
area between Pakistan and Indonesia," Musharraf was quoted as
telling the Indonesian leader.

Pakistan and Indonesia have friendly relations and bilateral
trade worth about US$350 million in 2002, heavily in Indonesia's
favor.

Indonesia is currently the chair of the 10-nation Association
of Southeast Asian Nations, and in her talks with Musharraf,
Megawati said that Asean countries - potentially a big market for
Pakistan - support its hopes of becoming a full dialogue partner
of the grouping, APP reported.

In recent months, Indonesia and Pakistan have taken steps to
increase cooperation in fighting terrorism.

Megawati's visit comes days after Pakistan deported six
Indonesian militants, including the brother of Southeast Asia's
alleged top militant, Hambali. The men are suspected of having
links with the al-Qaida-linked group Jemaah Islamiyah, blamed for
last year's Bali bombings that killed 202 people.

The men were studying at a seminary in the southern city of
Karachi when they were arrested in September.

It is Megawati's first visit to Pakistan since she took office
in July 2001. She was scheduled to hold talks with Prime Minister
Zafarullah Jamali later Monday.

Musharraf traveled to Indonesia after seizing power in a
bloodless coup in 1999.

Pakistan has said Megawati's visit will help cement relations
between the two countries, which have the world's largest Muslim
populations. Indonesia has 210 million people, and Pakistan has
140 million.

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