JOINT STATEMENT BETWEEN THE REPUBLIC OF INDONESIA AND THE REPUBLIC OF KOREA

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1 JOINT STATEMENT BETWEEN THE REPUBLIC OF INDONESIA AND THE REPUBLIC OF KOREA I. At the invitation of the President of the Republic of Korea, H.E. Roh Moohyun, the President of the Republic of Indonesia, H.E. Dr. Susilo Bambang Yudhoyono, paid a state visit to Korea on July President Susilo Bambang Yudhoyono was accompanied by 7 (seven) Cabinet Ministers and a large number of representatives of the Indonesian business community. 2. The visit by H.E. Dr. Susilo Bambang Yudhoyono followed on the visit of H.E. Roh Moo-hyun to Jakarta, 4-6 December 2006, in which the two leaders signed Joint Declaration on Strategic Partnership to Promote Friendship and Cooperation in the 2 F 1 Century in Jakarta, 4 December 2006, marking a new era of cooperation between the two countries. 3. Indonesia and Korea reaffirmed their long-standing friendship and their common aspiration for peace, security, stability and progress. Both countries also reaffirmed their common democratic values and the vision of open and competitive economy. 4. President Roh Moo-hyun commended that, as the most populous majonty Moslem nation, Indonesia is a powerful example that democracy, Islam and modernity can go hand in hand. The two Presidents expressed their satisfaction that the relationship between their two democracies continues to grow and strengthen. 5. President Susilo Bambang Yudhoyono and President Roh Moo-hyun discussed bilateral issues and other issues of common concern at regional and international levels. The two leaders were committed to promoting bilateral ties based on action-oriented and forward looking perspective. The two leaders also stressed the importance of greater RI-ROK partnership in strengthening multilateralism as well as promoting regional and international peace, stability and economic development. The two leaders were determined to play their constructive roles to promote tolerance and harmony among cultures, religions and civilizations in a globalized world.

2 6. Both leaders welcomed the current positive development with respect to the implementation of the 13 February 2007 agreement reached at Six Part Talks in Beijing. They were convinced that the settlement of nuclear issue as well as that pertaining to the reunification of the Korean Peninsula should be achieved peacefully through dialogues and negotiations. President Roh Moo-hyun noted the constructive role played by Indonesia in addressing the issues concerning the Korean Peninsula and encouraged its continuation. 7. The two leaders expressed their satisfaction with the implementation of Strategic Partnership between Indonesia and Korea and were committed to further promote it. In this regard, they welcomed the works of the Eminent Persons' Group which had prepared its report that was submitted to the two leaders on 24 July The EPG report gives concrete recommendations on ways and means to encourage greater cooperation between the two countries in order to follow up the Joint Declaration on Strategic Partnership signed by the two leaders in December It would therefore provide a solid roadmap for promoting mutually beneficial ties between Indonesia and Korea. 8. President Susilo Bambang Yudhoyono commended President Roh Moohyun's initiative launched in March 2007 for the two countries to establish the Rl-ROK Joint Task Force on Economic Cooperation. The Task Force serves as a practical mechanism for both countries to explore and benefit from tangible economic, trade and investment opportunities, on a long-term basis and in a way that would benefit the two sides. 9. The two leaders welcomed the achievements reached at the First Meeting of the Rl-ROK Joint Task Force on Economic Cooperation held in Jakarta, 30 April- 2 May 2007 which was attended by almost four hundred businessmen, CEOs and government officials of both countries. In this regard, both leaders encouraged public and private sectors in their respective countries to work even closer together for realizing and implementing concrete agreements and identified projects which were achieved by the RI-ROK Task Force. I 0. Greatly encouraged by the existing progress made by Indonesia and Korea in implementing Strategic Partnership, President Susilo Bambang Yudhoyono and President Roh Moo-hyun were committed to assign the RI-ROK Joint Task Force to pursue the following strategic goals which they believed achievable: 2

3 Doubling the value of current bilateral trade and investment by 2012; Doubling the movements of tourists between the two countries within the next 5 years, especially Korean tourist visits to Indonesia. Promoting the participation of private sectors of both countries for infrastructure development in Indonesia; Enhancing bilateral cooperation for the development of renewable energy; Enhancing the energy security by promoting bilateral cooperation for energy exploration and exploitation activities in Indonesia especially for the purpose of discovering new oil and gas fields; Expressing strong commitment to implement the projects of forestry plantation, industrial forest, joint research programs, biotechnology, capacity building and bioenergy investment as well as pilot projects on Afforestation/ Reforestation and Clean Development Mechanism (AIR CDM); Expanding the defense industrial cooperation including joint production as a way to strengthen the bilateral defense relations; Promoting mutual cooperation in the placement of Indonesian workers in Korea under the Employment Permit System (EPS); Supporting projects for the Indonesian National Disaster Early Warning System; Promoting bilateral cooperation for peaceful uses of nuclear energy; Enhancing ICT cooperation including e-government, e-business and ICT vocational training; I 1. The two leaders were committed to promoting cultural cooperation of both countries and to strengthening and increasing mutual cooperation in the fields of youth and sports. 12. President Susilo Bambang Yudhoyono reconfirmed the RI's support to the ROK's bid for 2012 World Expo in Yeosu, which demonstrates the close cooperation between the two countries in the international arena. 13. President Susilo Bambang Yudhoyono attended Business and Energy Forum in Seoul, 25 July 2007 which was held, among others, to provide information on business climate as well as investment and trade opportunities in Indonesia. The Forum would hopefully encourage public and private sectors of both countries to explore and implement mutually beneficial cooperation in various development projects. 3

4 14. During the state visit of President Susilo Bambang Yudhoyono to Korea, the following documents were signed by both sides: Memorandum of Understanding on Adoption and Mitigation of Climate Change in forestly Through Afforestation/Reforestation Clean Development Mechanism (AIR CDM) and Other Related Mechanisms beflveen Ministry of Forestry of the Republic of Indonesia and the Korea Forest Service, Memorandum of Understanding on Bilateral Cooperation in the Area of Public-Private Partnership for Infrastructure Development between Coordinating Ministry for Economic Affairs of the Republic of Indonesia and the Ministry of Planning and Budget Republic of Korea; lvfemorandum of Understanding on Special Economic Zone beflveen Batam Industrial Development Authority (BJDA) and lncheon Free Economic Zone (!FEZ), Memorandum of Understanding on Cikarang Dry Port Project between PT Jababeka lnfrastruktur, Saman Co (Korea) and ltochu Corporation (Japan); Memorandum of Understanding on Shipbuilding-Joint Cooperation (Joint Venture/Operation) between C& Group Heavy Industries Co., LTD and PT Dok & Perkapalan Kodja Bahari (Persero), Letter of Intent on Joint Cooperation on E & P Projects beflveen PT Pertamina (Persero), KNOC and SK C01poration, Letter of Agreement on Revamping Rejine1y Capacity from 120 thousand bopd to be 200 thousand bopd between PT Pertamina (Persero) and SK Corporation, Letter of Intent on Joint Cooperation Pertamina - Korea Gas Corporation beflveen PT Pertamina (Persero) and Korea Gas Corporation (KOGAS); A1emorandum of Agreement on South Stanatera NGL Plant Project beflveen PT PERTAGAS (Wholly owned Subsidiary of PT Pertamina (Persero)) and El Corporation; Head of Agreement on Lubricant Co-Branding between PT Pertamina (Persero) and SK Energy; Memorandum of Agreement on The Development of Tanjung Api-api Region, the Energy lnduslly in South Sumatera Province, Indonesia between PT Petras Indonesia and the Korean Consortium which is represented by Jnnet Company Ltd., Memorandum of Agreement on Coal Infrastructure beflveen East Kalimantan Provincial Government, PT Kereta Api, PT Nuansa Cipta Coal Investment and Kenertec Co., Pasco Engineering & Construction Co. Ltd. Memorandum of Understanding on the Study for Possible Nuclear Power Plant Development Scheme in Indonesia. 4

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