Premier Wen Jiabao said in Beijing Thursday that China will keep long-term friendship with Indonesia for common development of the two major developing countries in Asia-Pacific region and to make contribution to the regional prosperity and stability.

Wen told Indonesian President Susilo Bambang Yudhoyono, who is heading a 100-member delegation for a five-day state visit, that his China tour will boost bilateral ties to a new phase of development.

"In recent years, Sino-Indonesian ties maintained sound development momentum and our cooperation in politics, economy and health fields kept expanding," Wen said.

During President Hu Jintao's visit to the most populous ASEAN (the Association of Southeast Asian Nations) member country last April, China and Indonesia established a strategic partnership, which promoted Sino-Indonesian relations.

"To consolidate and develop comprehensive cooperation with Indonesia is our sincere wish," Wen said.

China and Indonesia carried out fruitful cooperation in trade and economic fields, Wen said. "The fact proved that we two economies are reciprocal and share broad prospect for cooperation."

The premier urged the two sides to further cooperation in infrastructure construction, energy and natural sources exploration and improve economic ties by expanding two-way investment.

Expressing his appreciation of China-ASEAN relations, Wen said that mutual trust and mutual-beneficial cooperation have become the main feature of their relations. "It's our common long-term goal to reach regional stability and common prosperity and we will continue our contribution."

Wen appreciated Indonesian government's adherence to the one-China policy, saying China will, as before, support Indonesia's efforts in maintaining national unity and stability.

Susilo urged the two sides to implement relevant plans and concrete projects to enrich the strategic partnership.

The president said Indonesian business circle hopes to enhance ties with its Chinese counterpart and Indonesian government supports Chinese enterprises to do business in his country as well, especially in the fields of infrastructure construction, energy and plantations.

Susilo appreciated China's friendly policy toward ASEAN. He also reiterated Indonesian government will unswervingly adhere to the one-China policy.

China and ASEAN is set to forge a Free Trade Area by 2010, which will create an economic region of 1.7 billion consumers, a regional GDP of about US$2 trillion and total annual trade volume estimated to reach US$1.23 trillion.

According to the Indonesian Chamber of Commerce, Sino-Indonesian trade is expected to reach US$15-20 billion in three years, just as both countries' leaders promised in April when Hu visited the archipelago.

Hu raised a seven-point proposal while meeting Susilo in Jakarta, vowing to strengthen strategic consultation, expand economic and trade ties and promote cooperation in culture, education, sports and tourism.

Hu will hold talks with Susilo late Thursday and a series of MoUs or agreements on economic and cultural cooperation were expected to be signed, according to diplomatic sources.

Indonesia signed its first bilateral trade agreement with China in 1953, after officially establishing diplomatic ties with China on April 13, 1950.

Direct trade between the two countries later ceased due to political reasons. It was restored through a 1985 agreement, which preceded a full normalization of all diplomatic ties in 1990. Since then, bilateral trade has flourished. 

(Xinhua News Agency July 28, 2005)