Trade links dominate Bhutto visit

Trade links dominate Bhutto visit

JAKARTA (JP): President Soeharto and Pakistani Prime Minister
Benazir Bhutto yesterday agreed that the two countries' private
sectors should take the lead in forging closer economic ties
between the two nations.

"The two leaders agreed to boost further economic and
commercial relations in the context of South-South cooperation,"
Indonesian Minister/State Secretary Moerdiono said of the meeting
yesterday, which took place at Merdeka Palace.

"The business private sectors of the two countries should lead
the way and engage with one another more frequently through
mutual visits and getting to know one another's products and
capabilities," he said, adding that Soeharto also commended the
large Pakistani business contingent accompanying Bhutto.

The two leaders later witnessed the signing of memoranda of
understanding on economic and technical cooperation and on
investment guarantees by their foreign ministers.

Accompanied by her husband Asif Ali Zardari, Bhutto arrived
here on Thursday for a three-day visit primarily aimed at
expanding Pakistan's business opportunities in the region.

She visited Brunei before coming to Indonesia.

Her entourage includes five cabinet ministers and some 80
Pakistani business leaders.

While economic matters were high on the two leaders' agenda,
Bhutto also expressed Pakistan's desire to join the ASEAN
Regional Forum (ARF).

The ARF is a regional security dialog hosted by members of
the Association of Southeast Asian Nations -- Brunei, Indonesia,
Malaysia, the Philippines, Singapore, Thailand and Vietnam. The
annual meeting involves the seven ASEAN states along with
Australia, Canada, Japan, New Zealand, South Korea, the United
States, China, Russia, Papua New Guinea, Cambodia and Laos.

"Indonesia will forward the request and discuss it with other
ASEAN members," Moerdiono said.

Later in the afternoon, Bhutto further underscored the primary
aim of her visit here by attending a luncheon hosted by the
Indonesian Chamber of Commerce and Industry (Kadin) at the Hilton
Hotel.

Witnessed by the prime minister, businessmen from both
countries signed several memoranda of understanding which
included cooperation in infrastructure development and financial
services.

"I am sure that closer relations can help increase the balance
of trade between the two countries which currently hovers at
around US$215 million," said Kadin Chairman Aburizal Bakrie.

Meanwhile the president of Indonesia's Bukaka company, Fadel
Muhammad, said his firm had just forged greater cooperation with
Pakistan's National Power Construction Corporation, worth some
$400 million, to build roads, bridges and clean water facilities.

Bhutto herself noted the tremendous potential for economic
cooperation between Indonesia and Pakistan which dates back from
the early days of independence.

She said she would also welcome cooperation with Indonesia in
oil and gas refining.

Indonesian State Minister of Research and Technology B.J.
Habibie said on Wednesday that Pakistan is ready to buy 15 N-250
planes built by IPTN, the state-owned aircraft manufacturing
company.

Bhutto yesterday took time to meet with her old friend
Megawati Soekarnoputri who currently heads the Indonesian
Democratic Party (PDI). The two have known each other since
childhood when their fathers ruled their respective countries.

Benazir is daughter of Zulfikar Ali Bhutto who was an
important political figure in the 1960s and rose to become prime
minister of Pakistan in 1971. Megawati is daughter of Indonesia's
first president Sukarno.

"I used to call Benazir's father uncle," Megawati told
reporters after her meeting at the State Guest House.

She explained that their two families had been close and that
the meeting had been very friendly.

Megawati commented that during their discussion, Bhutto said
she was impressed at the number of women active on Indonesia's
political scene.

President Soeharto's eldest daughter, businesswoman Siti
Hardiyanti Rukmana, a day earlier also made it a point to pay a
courtesy call on Bhutto.

Bhutto yesterday left Jakarta for a night on the holiday
resort island of Bali before flying home today. (mds)

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