Chinese and Indonesian presidents signed a joint statement in Jakarta Monday, proclaiming relationship between the two countries as "strategic partners".

Visiting Chinese President Hu Jintao and Indonesian President Susilo Bambang Yudhoyono signed the joint statement.

Hu Jintao is on a state visit to Indonesia after attending the Asian-African Summit and the 50th anniversary of the Bandung conference.

Hu said the statement marked a new stage in China-Indonesia relationship and will exert important influence to China-ASEAN ties.

President Susilo Bambang Yudhoyono accepted Hu's invitation to visit China in the latter half of the year and the two agreed to establish a vice-premier level dialogue mechanism as a way to enhance strategic consultations.

The two heads of state also agreed to expand economic cooperation and trade. They aim to increase two-way annual trade volume to 20 billion US dollars within three years from now.

China-Indonesia trade reached 13.48 billion US dollars last year, up 31 percent from a year before. The two sides have also cooperated in a number of major projects like energy and infrastructure construction.

Hu said the two countries will also enhance cooperation in building infrastructure, energy, agriculture, fishing and development of natural resources.

China will provide 30 million yuan (about 3.63 million US dollars) of assistance to Indonesia, and another 300 million US dollars of preferential loans to Indonesia for its construction of infrastructure and the reconstruction of disaster-hit areas. China has previously pledged 400 million US dollars of preferential loans to Indonesia.

In addition, China has decided to provide another 20 million US dollars worth of assistance, including money and goods, to Indonesia for disaster-relief in earthquake-hit areas. Part of the goods were already carried to Indonesia on Hu's special plane.

Shortly after the strong earthquake happened last month, China announced to provide a total of 500,000 US dollars worth of assistance to Indonesia for disaster relief.

"China and Indonesia are friendly neighbors, and we will work with the Indonesian side together to seek opportunities to deep our strategic partnership relations, and jointly work for a rational and just new political and economic order in the world," Hu said.

For his part, President Susilo described Hu's visit to Indonesia as a "milestone" in bilateral relations. The visit has

also encouraged the Asian-African cooperation and has positive impact on regional peace and cooperation, he said.

Also on Monday, China and Indonesia signed eight other documents, ranging from cooperation in areas of visa exemption, maritime cooperation, infrastructure building and natural resources development, cooperation on scientific research of earthquake and tsunami, to cooperation in treasury, between Red Cross societies and agreements on preferential loans.

The two sides agreed that China will establish a consulate-general in Surabaya of Indonesia and Indonesia establishes a consulate-general in China's Shanghai.