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Indonesia signs agreements with Japan, Russia and South Korea


Friday December 08, 2006

In the past two weeks, President Yudhoyono’s schedule has been to meet a number of Heads of State and of Governments as the President went on official visits to and . This schedule was immediately followed by a visit of South Korea’s President Roh Moo-hyun to Jakarta . Results of these meetings are agreements signed between Indonesia with Japan, Russia and South Korea respectively. 

An overview presented by Indonesia’s Trade and Industry News published by the Coordinating Ministry for the Economy, reports as follows: 
 

 

a.     President receives Honorary Doctorate from Keio University, Tokyo  

 

In Japan, President Susilo Bambang Yudhoyono on Monday (27/11/06) pledged his commitment to good governance after receiving an honorary doctorate during his visit to major investor Japan, where he set the seal on a framework for a free trade deal. 

Receiving an honorary doctorate at Tokyo’s prestigious Keio University , Dr. Yudhoyono said he was dedicated to enforcement of the law and bringing economic equality.  "I would say good governance is the ideology of the 21st century," he told his audience. "Without good governance, you will not succeed in achieving economic growth.” 

Keio University said it was honoring the contributions of Dr. Yudhoyono, whose government last year signed a peace treaty in Aceh aimed at ending three decades of separatist conflict in the tsunami-wracked province. 

Dr. Yudhoyono "contributed to securing the political stability of the nation based on the platform built upon four pillars: a more peaceful, more just, more prosperous and more democratic ," said university dean Tomoyuki Kojima. 

The Indonesian leader held talks with Japanese Prime Minister Shinzo Abe on Tuesday and later signed off on the framework for the free trade agreement. 
 

 

b.     buys Sukhois from and cooperate in nuclear technology  

 

Then in Moscow, Russia and Indonesia on Friday (1/12/2006) agreed to boost trade and military ties and cooperate more closely in the field of energy.  

Meeting at the Kremlin, Russian President Vladimir Putin told Susilo Bambang Yudhoyono he would like to see bilateral trade rise to at least $1 billion annually. Currently, it is just over half that. 

"Our relations are developing dynamically in the political and economic spheres. We continue joint work in the sphere of fighting against terrorism and in military-technical cooperation," Mr. Putin said. 

Indonesia is considering purchasing Russian military equipment, including more sophisticated Sukhoi fighter jets and submarines. The two leaders concluded an agreement on boosting military cooperation. 

Mr. Putin also said both countries should step up cooperation in energy. "We consider it highly important to coordinate our actions on world energy markets so that this work not only doesn't bring any harm, but on the contrary would boost cooperation," he said. 

The Indonesian president thanked for supporting his country's successful bid to become a non-permanent member of the UN Security Council. The two leaders also noted their common position on most international problems. 

In a joint statement, they expressed concern over 's nuclear test and urged Pyongyang to return to six-party talks. They also called on and the Palestinians to resume peace negotiations. "I hope that our relations will continue strengthening in the future," said Yudhoyono.

Both countries also agreed to step up cooperation in peaceful space exploration and nuclear technology, said Sergei Kiriyenko, the head of 's state nuclear agency Kiriyenko said is ready to take part in the building of ’s first nuclear power station on Java’s northern coast. 
 

 

c.  - cooperate in nuclear energy, mining, forestry, tourism  

 

Jakarta and Seoul will sign a comprehensive strategic partnership agreement during a three-day state visit by South Korean President Roh Moo-hyun, which began Sunday (3/12/06). The pact includes 30 programs of action, as well as nine memorandums of understanding (MOUs) covering various industries. 

South Korean Ambassador to Indonesia Lee Sun-jin told a press briefing that the new accord will lay a foundation for the widening and deepening of bilateral relations between the two countries, and establish a framework for more business cooperation. 

The strategic partnership aims to ensure that both countries will work together on the basis of shared values such as democracy and a market economy, and common strategic goals such as enhancing regional cooperation. Lee said both leaders wanted to make the agreement effective immediately. "We are establishing an eminent persons group to map out and speed up the implementation of the action programs," he explained. 

The MOUs will cover the energy and mining sector, including nuclear cooperation; forestry; information technology, telecommunications, human resources, finance, trade, small-and medium-scale enterprise cooperation, anti-corruption and tourism. 

Businessmen from both countries will hold the first Indonesia-Korea joint energy forum on Tuesday, while will offer technical help with its plans to establish its first nuclear plant in Central Java . 

"We are a leading country in nuclear technology,” Lee said. “As you know, nuclear plant security is very delicate; that's why we are offering help in this field.” 

In the forestry sector, Korean companies are being invited to invest in 500,000 hectares of land set aside for crude palm oil and pulp and paper plantations. will develop an information-technology training center for Indonesians, while the Indonesian Investment Coordinating Board will sign an agreement with the Korean investment agency to enhance cooperation on investments. 

Bank Indonesia and South Korean Central Bank will extend their swap agreement, which was due to expire by the end of this year, for another two or three years. "Currently our swap agreement to hedge the risk of financial crisis is at $1 billion. We would like to increase the amount from the current level," Lee said. 

South Korea will also provide $400 million in soft loans for for 2006-2009 and provide Jakarta with a grant of $30 million for 2006-2008. is already one of the largest investors in the country, with approved cumulative investment of $8.7 billion and realized investment of over $4 billion over the past 15 years. Last year alone, approved investment was $617 million. There are over 1,100 Korean companies operating in Indonesia.