Indonesia, Malaysia ink economic cooperation agreements

The Indonesian and Malaysian governments have agreed to cooperate in business and investment covering infrastructure, plantations, crude palm oil plants, oil and gas and energy.

The agreement was reached at the Annual Summit between Indonesia and Malaysia in Bukit Tinggi, West Sumatra province, on Thursday, Antara news agency reported on Friday.

In the presence of Indonesian President Susilo Bambang Yudhoyono and Malaysian Prime Minister Datok Sri Abdullah Ahmad Badawi, the agreement was signed by Chairman of the Malaysia- Indonesia Business Council (MIBC) Tan Sri Dato' Seri Ahmad Sarji bin Abdul Hamid and Chairman of Indonesia-Malaysia Business Council (IMBC) Tanri Abeng.

According to Tanri Abeng, the main purpose of the deal was to continue cooperation in business investment including trade between the two sides.

Meanwhile, in his speech, Seri Ahmad Sarji said five Malaysian companies had participated in a bidding for six toll road projects in Indonesia worth 1.345 billion U.S. dollars.

Apart from that, a Malaysian company has bought 10,000 hectares of land in Sei Mawang, and 20,000 hectares in Sekadau, West Kalimantan province, to be developed into plantations.

The other cooperation program covers the building of crude palm oil factories in Ketapang and Sanggau, West Kalimantan, worth 30 million Malaysian ringgits (approximately 8 million U.S. dollars).

In the oil and gas sector, a Malaysian company will build a 1700-km gas pipeline from East Kalimantan to Java Island.

Still another Malaysian company, PECD Berhard, on the occasion, signed a contract for the construction of a 165-km gas pipeline from Sumatra Island to Java Island at a cost of 140 million U.S. dollars.

Meanwhile, a Malaysian company has offered to build a coal- fired power plant in Cirebon, West Java, worth 600 million U.S. dollars.

The company is also discussing cooperation with state-run electricity company PT.PLN in running the power plant in South Sumatra worth 200 million U.S. dollars.

Cooperation in running a coal-fired power plant in Merak, Banten, worth 30 million U.S. dollars, is still being discussed.

Source: Xinhua