Sat, 17 May 2003

RI, Germany pledge cooperation in fighting against terrorism

Fabiola Desy Unidjaja The Jakarta Post Jakarta

Indonesia and Germany have agreed to strengthen bilateral ties by joining hands in the war on terrorism, as well as the protection of investments here.

Speaking at a joint press briefing with German Chancellor Gerhard Schroeder, President Megawati Soekarnoputri said on Wednesday that the two leaders agreed to cooperate in sharing intelligence information between their national police forces.

"We agreed that bilateral cooperation in fighting terrorism, particularly in the sharing of intelligence information, would be further developed," Megawati said.

Schroeder arrived here on Tuesday for a two-day visit aimed at bolstering bilateral relations. He left for Hanoi on Wednesday.

National Police Chief Gen. Da'i Bachtiar said the two countries would still discuss areas of cooperation as soon as possible.

"It (the cooperation) will also include Germany's assistance to improve our police capabilities," Da'i said.

Schroeder, on his part, praised the ongoing economic reforms and promised to promote Indonesia's condition to the world.

"I clearly see that the Indonesian economy has started to recover, however, the international community is not aware of it," Schroeder, speaking in German, said in the joint press briefing.

Megawati praised Schroeder for visiting the region despite the outbreak of the Severe Acute Respiratory Syndrome (SARS).

She also thanked Germany for its continuous support for Indonesia's territorial integrity. "We appreciate that Germany continues to express a clear stance of not supporting separatist movements here," the President said.

The two leaders also witnessed the signing of a memorandum of understanding on the promotion and reciprocal protection of investments between the German Minister for Economics and Labor Wolfgang Clement and Indonesian Coordinating Minister for the Economy Dorodjatun Kuntjoro-Jakti.

Under the agreement, both countries pledged to provide better legal protection for foreign investors, including provisions on obligations to compensate firms in cases of expropriation, a transfer of guarantee for payments in connection with investments, the right to international arbitration to settle disputes and equal treatment of foreign and domestic investors.

Schroeder said Germany was looking forward to another agreement for a power plant construction and building an inter- island passenger liner here.

Schroeder was on a Southeast Asian tour that also took him to Malaysia, Singapore and Vietnam. He left for Hanoi on Wednesday evening.

Minister for Foreign Affairs Hassan Wirayuda said Wednesday that the visit would revive relations between the two countries.

Schroeder is the first German chancellor to visit Indonesia since the down fall of former president Soeharto in 1998.

Germany is Indonesia's seventh largest trading partner, with annual trade standing at around 3.7 billion euros and direct investment reaching up to 440 million euros.