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China and Indonesia signed a memorandum of understanding (MOU) in Shanghai on Saturday concerning cooperation in the energy and mineral resources sectors.

 

Chinese Vice Premier Huang Ju and visiting Indonesian President Susilo Bambang Yudhoyono attended the signing ceremony held at the second Sino-Indonesian energy forum, which opened in Shanghai on Saturday.

 

Huang said the forum will create a favorable environment for strengthening bilateral energy cooperation and the improved dialogue mechanism will help deepen mutual understanding and expand cooperation.

 

Win-win economic cooperation is the foundation of the strategic partnership between China and Indonesia, he said.

 

Both China and Indonesia have made remarkable achievements in the energy sector since the first energy forum was held in Bali on Sept. 25, 2002, the vice premier added.

 

Huang said the Chinese and Indonesian peoples have a long history of friendly relations. Bilateral ties have progressed remarkably since the two countries established diplomatic relations 56 years ago.

 

Bilateral ties entered a new phase after Chinese President Hu Jintao signed a strategic partnership with his Indonesian counterpart Susilo during a state visit to Jakarta last year, Huang pointed out.

 

He noted that as two major developing nations in Asia, the friendly cooperation of the two sides is not only in their own interests but also conducive to peace, stability and prosperity in Asia and the world.

 

The Indonesian president said energy security is a key factor in allowing China and Indonesia to achieve peace, stability and development.

 

He said there is great potential for the two sides to explore energy cooperation and the pace of cooperation should be further accelerated.

 

The two countries have agreed that, beginning in 2009, Indonesia's Tangguh gas field will provide 2.6 million tons of liquefied natural gas (LNG) annually to east China's Fujian Province for a period of 25 years.

 

Indonesia is the largest economy in the Association of Southeast Asian Nations (ASEAN), and China is its fourth largest trade partner.

 

(Xinhua News Agency October 29, 2006)