On the afternoon of November 7, Premier Zhu Rongji held talks with Indonesian President Megawati Sukarnoputri at the Presidential Palace. The two sides had an in-depth exchange of views on strengthening bilateral friendly relations in the new century and reached extensive consensus.

Zhu first conveyed cordial greetings from President Jiang Zemin to President Megawati. Megawati expressed thanks and asked Zhu to convey her greetings to Jiang.

Megawati extended a warm welcome to Zhu for his official visit and expressed the belief that the visit will further promote the development of bilateral relations.

Zhu appreciated the proactive and pragmatic policies Megawati has taken since she came into office and the remarkable results achieved.

He said that Indonesia is a big country in Asia and important member of ASEAN. Indonesia’s stability and development are of great importance for the region. The Chinese government will, as always, continue to support Indonesia's unremitting efforts in safeguarding territorial integrity, national unity and the co-existence of its ethnic groups.

Zhu spoke highly of bilateral relations. He said that China and Indonesia are friendly neighbors. It is China's firm policy to consolidate and develop the traditional friendly bilateral relations, which is in the immediate and long-term interests of the two countries and conducive to peace and development in Asia and the world.

Zhu said that at the beginning of the new century, the Chinese side is ready to work with the Indonesian side to constantly develop the long-term and stable good-neighborly relationship of mutual trust and all-round cooperation.

Zhu proposes:

I  Maintain regular high-level visits and contacts. He also expressed the hope that the two sides increase exchanges between their government departments, political parties and congresses through various channels so as to enhance mutual understanding and friendship. Zhu reaffirmed that the Chinese side welcomes and looks forward to the state visit by Megawati to China at a convenient time next year.

II  Strengthen bilateral economic and trade cooperation according to the principle of mutual benefits on an equal footing, long-term cooperation and common development.

III  Strengthen cultural and educational bilateral exchanges and cooperation, which have played a positive role in promoting common understanding and friendship between the two peoples.  China hopes to keep the current developing momentum in these areas.

IV  Both China and Indonesia exert major influence in regional and world peace and development. In history, the two countries sympathized with and support each other in the international struggle for national independence and have established profound friendship. The Five Principles of Peaceful Co-existence China stands for and the Ten Bandung Principles initiated by Indonesia have become important principles guiding the current international relations. At present, with the international situation undergoing profound changes, the Chinese side is ready to continue consultation and cooperation with Indonesia on regional and international political, economic, and security issues of common concern, safeguard the rights and interests of developing countries, and push for the establishment of a fair and reasonable international new order.

Megawati agreed with Zhu on his positive assessment of bilateral relations. Megawati expressed thanks for the support by the Chinese government of Indonesia’s efforts to maintain territorial integrity and national unity. She said that since Indonesia and China resumed diplomatic relations, with joint efforts, bilateral relations have achieved considerable progress, with closer cooperation in economic, trade and other areas. Indonesia is satisfied with that.

Megawati appreciated Zhu’s proposals on strengthening bilateral mutually beneficial cooperation in all fields. She said that Indonesia is looking forward to the great support and help of China, a friendly neighbor, in both its national economic development and regional affairs. Indonesia is ready to further deepen friendly and mutually beneficial cooperation with China in all fields.

The two sides also had an in-depth discussion on how to deepen bilateral mutually beneficial cooperation. Zhu proposed that priority should be given to agriculture, energy, resources development and infrastructure construction for future cooperation based upon each other’s strength and economic complementarity. Megawati agreed with that.

On agricultural cooperation, Zhu said that both China and Indonesia are countries with a big population. Agriculture is the foundation of national development. China has accumulated a lot of experience in agricultural research and development, machinery, and water conservancy. There is great potential for bilateral cooperation in this field. He hopes that the Memorandum of Understanding on Agricultural Cooperation signed on that day will further promote agricultural cooperation between the two countries. Megawati said that Indonesia urgently hopes to strengthen agricultural cooperation with China and other countries so as to solve the problem of food security. Indonesia is ready to conscientiously implement agricultural cooperation initiatives.

On fishery cooperation, Zhu said that the two countries signed Memorandum of Understanding on Fishery Cooperation in April. The two sides should step up efforts to implement it. We also hope to sign a negotiated fishery cooperation agreement to promote and regulate fishery ties between the two countries. Megawati said that China provides support to Indonesia in the field of fishery and expressed thanks for that. Indonesia hopes to deepen cooperation with China on fishing and harvesting, processing, and research and development.

On energy cooperation, Zhu analyzed the great potential and complementarity existing between the two countries and suggested the energy departments of the two countries establish contacts as soon as possible. Megawati fully agreed with that.

On infrastructure building, Zhu emphasized that China has rich experience, mature technologies and strong competitiveness in that regard and is ready to participate in Indonesia’s infrastructure building through project contracting and other means. Megawati briefed Zhu on Indonesia’s domestic demand for railroad and bridge construction and expected China’s important role in that.

On the set up of a Bank of China branch in Indonesia, Zhu said that after long preparations, time is finally ripe. We appreciate the positive attitude by the Indonesian government on that matter. The two sides are going to sign a formal memorandum of understanding. The Bank of China is going to resume its branch in Indonesia, which will play a positive role in promoting mutually beneficial cooperation between the two countries. Megawati welcomed that and stressed that Indonesia will provide all convenience for the resumption of the branch.

The two sides exchanged views on strengthening bilateral cultural, education and tourism exchanges and the establishment of a  consulate general by Indonesia in China.

Following their talks, the two leaders took part in a signing ceremony. The two sides signed a number of accords including the agreement on cultural cooperation and the agreement on avoiding dual taxation and preventing tax dodging and tax evasion. The two countries also signed four memoranda of understanding on agricultural cooperation, tourism cooperation, bank exchanges and cooperation and economic and technical cooperation.

On the same night, Megawati hosted a formal banquet to welcome the delegation led by Zhu.