Indonesia and Malaysia Strengthen Bilateral Ties Amid Regional Priorities

Strategic Insights -

Indonesian President Abdurrahman Wahid and Malaysian Prime Minister Mahathir Mohamad have reaffirmed their commitment to non-interference policies and strengthened bilateral ties during a meeting in Kuala Lumpur. The two nations have agreed to reinstate regular leaders' meetings to facilitate exchange on regional matters, including economic development and regional peace and stability. Indonesia has also requested additional financial assistance from Malaysia's oil giant Petronas to purchase rice, with Mahathir promising to encourage an increase in the credit line.

Key Takeaways:

  • Malaysia and Indonesia have reaffirmed their non-interference policy in each other's internal affairs, with a commitment to fostering closer bilateral ties.
  • Both leaders agreed to reinstate regular meetings between themselves to facilitate exchange on regional matters, including economic development and regional peace and stability.
  • Indonesia has requested an additional 200 million U.S. dollars in credit from Malaysia's Petronas to purchase rice, with the Malaysian government promising to encourage an increase in the credit line.
  • Indonesian President Abdurrahman Wahid has expressed gratitude to Prime Minister Mahathir for Petronas' assistance, with both leaders emphasizing the importance of close relations between the two nations.
  • Malaysia plans to send an investment delegation to Indonesia to enhance bilateral trade and investment linkages, as proposed by the Indonesian president.
  • The two leaders have also discussed the East Asia Monetary Fund, with a view to enabling East Asian economies to fend for themselves during financial crises.
  • Indonesia has expressed a preference for increased usage of the Bilateral Payments Arrangement (BPA) to enhance two-way trade with Malaysia.

Statistics:

  • Indonesia has requested an additional 200 million U.S. dollars in credit from Malaysia's Petronas to purchase rice.
  • The credit line initially extended to Indonesia by Malaysia's Petronas stands at 100 million U.S. dollars.
  • Indonesia has invited Malaysia to send an investment delegation to enhance bilateral trade and investment linkages.

Sources:

  • XINHUA (Nov. 6)
  • COMTEX (http://www.comtexnews.com)