16:30 | 26/03/2015 Global Economy
Japan will offer roughly 1.17 billion USD in low-interest loans for the construction of a mass rapid transit system in Jakarta, Indonesia, in an effort to boost bilateral defence and economic ties.
During talks in Tokyo on March 23, Japanese Prime Minister Shinzo Abe and Indonesian President Joko Widodo (Jokowi) - who is conducting his first visit to Japan since becoming President last October - welcomed the signing of a defence cooperation agreement that will involve Japanese capacity-building assistance for Indonesian forces, as well as cooperation in peacekeeping missions and defence equipment development.
They concurred to launch a forum to improve bilateral maritime cooperation and set up a ministerial dialogue to boost economic and industry coordination.
The two leaders also promoted bilateral "two plus two" meetings involving their defence and foreign ministers. The mechanism was launched in late 2013 but such talks have yet to be held.
In an effort to ensure regional peace and stability, Abe and Jokowi called on China and the Association of Southeast Asian Nations to step up consultations towards early consensus on the Code of Conduct in the East Sea while urging China and other claimants to exercise restraint and settle territorial disputes in line with international law.
After a four-day state visit to Japan, Jokowi will travel to China and meet with President Xi Jinping.