Seoul, Jakarta agree to fight recession, boost economic ties

(ATTN: UPDATES with joint press conference, additional remarks, minor changes
throughout)
By Byun Duk-kun
JAKARTA, March 6 (Yonhap) -- South Korean President Lee Myung-bak and his
Indonesian counterpart vowed Friday to fight the global economic crisis with a
united front and make efforts to bring down trade barriers amid what Lee has
called growing protectionism.

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 keys
to overcoming the ongoing crisis.
"The world economy may slow down in the face of a crisis, but the relationship
between the two countries can be significantly advanced," Lee said in a joint
press conference following his summit with Yudhoyono.
The Indonesian president agreed, saying Lee's visit also provided an opportunity
to further improve ties.
"As everyone knows, many things are going down because of the financial crisis,
but Indonesia and South Korea agreed to strengthen our cooperation and further
improve our friendship," he said.
The two leaders also agreed to work together at the upcoming G-20 summit in
London "to promote financial reforms and coordination of economic policies
between countries, and counter trade protectionism," the South Korean
presidential office said in a statement on the summit.
"Noting the 'strategic partnership' forged between South Korea and Indonesia in
2006 must be beneficial and provide practical gains to both of their people,
President Lee and President Yudhoyono agreed to further develop the countries'
ties toward that end," it said.
Trade between Seoul and Jakarta reached over US$13 billion last year, making
Indonesia the 11th-largest trading partner for South Korea, according its
presidential office.
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 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 countries also signed a separate deal, in the form of a letter of intention,
on the sidelines of the summit, under which Seoul will help develop a new fighter
jet for the Southeast Asian nation.
The deal is expected to amount to hundreds of millions 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), of which Indonesia is also a member.
Yudhoyono agreed to take part in the summit, to be held in South Korea's resort
island of Jeju on June 1-2, though he will be campaigning for re-election in the
July presidential election, according to Lee Dong-kwan, a spokesman for the South
Korean president.
The South Korean president was set to wrap up his visit on Sunday after a special
address for South Korean and Indonesian business representatives on Saturday,
followed by a meeting with South Korean residents here.
bdk@yna.co.kr
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