PM for long-term ties with Jakarta in oil sector

The Prime Minister, Mr. A.B. Vajpayee, today sought a long-term, mutually beneficial relationship with Indonesia in the area of oil and natural gas, which offered the potential for clean fuel from a ``friendly, proximate source to our eastern seaboard''. Since the visit of the Indonesian President, Mr. Abdurrahman Wahid, to India in February last, an MoU had been signed by ONGC Videsh and Pertamina of Indonesia, to assist in exploration and production at new sites here, the Prime Minister said.

Referring to the historical ties between the two countries, he said: ``Indonesia has always been close to us physically, culturally and politically. We have been trading nations for more than 1,000 years. The northern tip of Sumatra is less that 100 km from the southern tip of the Nicobar islands. We share a maritime boundary with Indonesia and have a vital interest in the security and stability of our common borders.''

Addressing an India-Indonesia joint business meeting, the Prime Minister said Indonesia was India's third largest trading partner in the Association of South East Asian Nations. ``It is also one of the leading investors in India from the region. Our trade turnover touched $1.3 billion in 1999-2000. This represents a 30 per cent growth over the previous year figure, which we welcome.''

He said India watched with great concern the economic and financial crisis (of 1997-98) which Indonesia so bravely faced and he was glad to see the signs of recovery. ``Under the wise and able leadership of President Abdurrahman Wahid, Indonesia would surely revive the pace of growth for which it was long known and admired.''

Referring to the Indian economy, he said the country had embarked on a path of radical reform. ``We have set ourselves the ambitious target of doubling our per capital income in the first decade of the new millennium. This requires we speed up growth to about nine per cent. We are confident of achieving this daunting target. In the process, we are determined to ensure that the benefits of globalisation do not pass by the common man.''

He also spoke of the danger of enhanced mobility of capital, technology, goods and services bypassing those countries which were slow in taking advantage of information technology. ``Such unbalanced growth between and within nations can have serious implications for social stability and peace. A double- digit growth of GDP is meaningless if it fails to enhance the quality of life for all Indians.''

In the era of economic reforms it was all the more necessary for governments to plan a long-term strategy for economic cooperation among nations and to facilitate public and private business to implement the strategy, he said adding ``I am confident the governments and businesses of our two countries will shape the evolving contours of our bilateral trade and economic relations. I am equally sure that these will reflect and also magnify our historically cordial ties.'' (*)