South Africa and Indonesia agree to reduce trade barriers

Pretoria (ANTARA News) - South Africa and Indonesia have agreed to reduce obstacles to trade and business and jointly explore new avenues for electricity generation, the leaders of the two countries said Monday.

"These will include government-to-government steps to minimise obstacles to trade, and business-to-business efforts to find new opportunities," visiting Indonesian President Susilo Bambang Yudhoyono said after meeting his South African counterpart Thabo Mbeki in Pretoria.

Such efforts have been lacking, he said, "because of the lack of information on both sides".

"We will concentrate on supporting elements like banking and insurance and improving sea and air links," Yudhoyono was quoted by AFP as telling journalists.

Mbeki said the two developing nations shared challenges in meeting the electricity demands of growing populations and economies.

South Africa's minister of minerals and energy would visit Indonesia soon to identify fields of co-operation in this regard, the president said.

"Most of our electricity comes from coal-fired power stations and there are environmental issues with that. We have taken the decision to build more gas-fired generators and to make more use of nuclear energy. We are also hoping to use hydro-electric power generated on the Congo River," said Mbeki.

According to Yudhoyono, Indonesia relied on oil, gas and coal-fired power stations.

"There has been talk of developing nuclear energy but there are some sensitivities about this."

The presidents signed an array of bilateral agreements aimed at formalising their countries' strategic relationship, as well as a framework on a new Africa-Asia partnership.

Accompanying ministers signed co-operation agreements on defence and on arts and culture. (*) end