RI, Timor Leste Sign LoI On Economic

Jakarta (Antara Bali) - Indonesia and Timor Leste have signed a Letter of Intent (LoI) to lay a basis for further negotiations on regional development through economic integration approaches, a presidential aide said.

"The letter of intent is just an agreement to hold further negotiations," Teuku Faizahsyah, President Susilo Bambang Yudhoyono's special aide for foreign affairs, said at Halim Perdanakusuma airport here on Sunday.

The two nations signed the LoI during President Yudhoyono's two-day visit in Timor Leste which ended on Sunday. Yudhoyono visited the neighboring country at the invitation of Prime Minister Xanana Gusmao.

Faizahsyah said the negotiations would be related to technical matters of the planned economic integration. The concept of economic integration came from Timor Leste to encourage development in its areas bordering Indonesia, he said.

Indonesia warmly welcomed the offer on the ground it would serve common interest to develop the regional economy, he said.

Earlier, on May 7, Coordinating Minister for Economic Affairs Hatta Rajasa said under the concept Timor Leste wanted to integrate its development with the corridor 5 and corridor 6 of the Master Plan for the Acceleration and Expansion of Indonesian Economic Growth (MP3EI) program.

The corridor 5, known as Bali-East Nusa Tenggara corridor, focuses on developing the tourism, agricultural and husbandry sectors, while the corridor 6, known as Papua-Maluku corridor, focuses on developing the mining, agricultural and plantation sectors. (*/M038/T007/DWA)