A delegation from the Indonesian Chamber of Commerce and Industry (Kadin) recently made its first- ever visit to Israel to seek closer business relations and assistance for Indonesia's economy, a report said Friday.

During the visit from June 25-29, the country's powerful business lobby signed its first economic agreement with the Manufacturers Association of Israel (MAI) to cooperate in the business and industrial sectors.

The agreement, signed by Kadin chairman Mohamad Suleman Hidayat and MAI president Shraga Brosh, covers arrangements for business cooperation and exchange of students, farmers and public figures between the two nations, said The Jakarta Post.

Under the deal, the two groups will work to exchange business information, forming joint business projects, and assist Indonesian and Israel businesspeople in their activities in the two countries.

Kadin's visit was made at the invitation of MAI and the Israel Export and International Cooperation Institute (EICI), which was sent around a month ago.

The countries have no bilateral diplomatic ties because Indonesia is a staunch supporter of Palestinian statehood.

Hidayat said that although Kadin had never officially informed the government about the visit nor sought any permission for it, several government officials knew about it beforehand. The Israeli Embassy in Singapore was involved in arranging the trip.

"I repeat, this was purely for business interests. There is no diplomatic or political issue involved in it. Our challenges now are to realize the cooperation for our benefit without resulting in any political implications," he said.

"Kadin wants to explore business opportunities from Israel in the fields of agriculture, horticulture, information technology and advance technology equipment. More Israeli investment will be available soon here but through a third party," he said.

According to Kadin, two-way trade between Indonesia and Israel was valued at around 160 million U.S. dollars last year, up from 120 million in 2004.

Indonesia mostly imported chemicals and electronic components valued at some 14 million dollars from Israel last year, and predominantly exported electronic products, plastics and rubber.

Source: Xinhua