ISLAMABAD, 25 November 2005 — Pakistan and Indonesia have agreed to enhance their existing bilateral trade, forge closer coordination and combat the menace of terrorism in their respective regions.

Describing terrorism as one of the most serious threats to international peace and security, the two nations decided to set up a joint working group (JWG) to combat terrorism, an official statement said.

The decision to set up the JWG was taken at formal talks between the visiting Indonesian President Susilo Bambang Yudhoyono and his Pakistan President Gen. Pervez Musharraf.

“The two leaders believed that terrorism constitutes one of the most serious threats to international peace and security,” said a joint statement after the talks.

However, they called for countering tendencies to associate terrorism with any religion and addressing the root causes of terrorism, which include poverty, inequity, injustice and oppression. They said while Islamic societies need to further reform themselves, the world community must also address the root causes of terrorism.

On bilateral trade, it was agreed to take measures to elevate it further from the current $600 million to at least $1 billion in the near future.

Welcoming signing of the Framework Agreement on Comprehensive Economic Partnership (FACEP) between Pakistani and Indonesian officials, the two countries expressed willingness to ink a Free Trade Agreement (FTA) soon.

“It was also decided to negotiate a Preferential Trade Agreement (PTA) in the near future in order to boost economic cooperation,” said the statement.

On regional security situation, the Indonesian president welcomed commencement of peace talks between Pakistan and India to address all outstanding problems including the dispute over the Himalayan region of Jammu and Kashmir.

He also expressed his nations condolences over the colossal loss of life in the Oct. 8 earthquake that struck parts of northern Pakistan and its administered Kashmir region. Yudhoyono is scheduled to visit the quake-hit areas in the Kashmir region today, on his two days visit.

Musharraf and Yudhoyono also discussed the issues being faced by the Organization of Islamic Cooperation (OIC). The two presidents felt that the OIC could be made a more vibrant vehicle for the Islamic countries to voice their collective issues at the international forums.

— Additional input from agencies