China and Indonesia signed deals worth at least $17 billion Friday in fields such as hydroelectricity and mining during a visit to Beijing by the Southeast Asian nation's leader, state media said. The agreements come as the two countries, both highly dependent on exports, seek to make up for sagging demand in Europe's debt-hit economies and a US economy still struggling to recover from the 2008 housing mortgage crisis.
They cover a wide range of industries including hydroelectric generation, mining, and steel making, and were signed by businessmen from the two countries during President Susilo Bambang Yudhoyono's three-day visit to China. "Indonesia welcomes Chinese enterprises to expand their investment in Indonesia and to participate in major infrastructure projects," Yudhoyono said, according to a statement posted on the Chinese foreign ministry website.
Trade between the two Asian nations has steadily increased in recent years, reaching $60.5 billion last year compared with just $2.9 billion in 2000, according to the China Council for the Promotion of International Trade. The two countries aim to increase bilateral trade further to $80 billion by 2015, and Yudhoyono said he was confident this previously-announced target would be met.
Chinese President Hu Jintao, meanwhile, told Yudhoyono Beijing wanted to increase cooperation with Jakarta "in the fields of oil and gas, minerals, electricity, and clean and sustainable energy." "In these times of a complex and ever-changing international situation, this visit by the President will strengthen strategic communication between our two countries and expand practical cooperation," Hu said in talks with Yudhoyono. "This is highly significant for taking the China-Indonesian strategic partnership to an even higher level." China is the world's second-largest economy, and Indonesia the biggest in Southeast Asia.