Seoul, Jakarta agree to fight recession, boost economic ties

(ATTN: UPDATES with remarks from the Indonesian president in 6th para)
By Byun Duk-kun
JAKARTA, March 6 (Yonhap) -- South Korean President Lee Myung-bak and his
Indonesian counterpart vowed a united front Friday in fighting the global
economic crisis and efforts to bring down trade barriers amid what Lee has called
growing protectionist trends by countries.

Lee arrived here earlier in the day after visits to New Zealand and Australia,
where he announced the start of official talks for bilateral free trade
agreements with each nation. His three-nation trip ends here Sunday.
Lee and Indonesian President Susilo Bambang Yudhoyono agreed to expand diplomatic
and economic relations, saying increased trade and economic cooperation are the
key to overcoming the ongoing crisis.
"Noting the need to increase their cooperation to overcome the global financial
crisis and boost their economies, the two leaders agreed to work closely together
to promote financial reforms, coordinate macroeconomic policies and to counter
trade protectionism at the second G-20 financial summit to be held in London in
April," the South Korean presidential office said.
The two leaders also agreed to further advance their "strategic partnership"
forged in 2006, noting the relationship is mutually beneficial to their peoples,
it said.
"It will greatly help the world overcome the financial crisis if we maintain and
strengthen the relationship between the two countries," Yudhoyono said at the
beginning of his summit with Lee.
Trade between Seoul and Jakarta reached over US$13 billion last year, making
Indonesia the 11th largest trading partner for South Korea, according to the
presidential office Cheong Wa Dae.
Seoul-Jakarta cooperation in developing new clean energy will also get a boost as
Lee and Yudhoyono called for joint efforts to fight climate change.
The countries signed a memorandum of understanding on the sidelines of the summit
that will add an additional 200,000 hectares of tree farms to the existing
500,000 hectares for South Korean businesses that produce wood pellets.
Wood pellet stoves have recently gained attention as alternative heating sources,
as burning pellets is considered more environmentally friendly than using fossil
fuels or wood logs.
The two leaders also signed a letter of intention to jointly develop a new
fighter jet for Indonesia. The deal is expected to amount to hundreds of million
of dollars, according to South Korean officials accompanying the president here.
Lee's trip also comes as part of an effort to launch what he has called a "new
initiative on Asia," under which Seoul will seek to actively reach out to and
strengthen relations with friendly nations in the region.
The South Korean president invited Yudhoyono to a special summit involving heads
of state from 10 member nations of the Association of Southeast Asian Nations
(ASEAN), to which Indonesia is also a member.
The special Korea-ASEAN summit is scheduled to be held in the South Korean resort
island of Jeju on June 1-2, according to officials.
"The new Asia initiative will make up one of two major pillars in our foreign
policy, along with our diplomacy on the big four," the presidential office said
earlier, referring to the four major powers surrounding the Korean Peninsula --
the United States, Japan, China and Russia.
The South Korean president was set to wrap up his visit on Sunday after a special
lecture for South Korean and Indonesian business representatives on Saturday,
followed by a meeting with South Korean residents here.
bdk@yna.co.kr
(END)