Jakarta, Oct 13

Indonesia and South Korea have agreed to establish a special economic zone for the South Korean firms operating in Indonesia.

Indonesian President Susilo Bambang Yudhoyono and visiting South Korean President Park Geun-hye witnessed the signing of the agreement Saturday in this regard after their bilateral meeting at the state palace here, Xinhua reported.

The deal is expected to bring more investment and technology from South Korea to Indonesia, said Indonesian Coordinating Minister for Economy Hatta Rajasa.

The Indonesian government told foreign investors that it would develop mining, agriculture and manufacturing sectors in Sumatra, Kalimantan and Sulawesi, said Rajasa.

"We have agreed to attract more investment and exchange experience of Korean success," he said.

"I asked President Yudhoyono to support Korean firms facing obstacles and we agreed to cooperate in order to improve," President Park said.

President Yudhoyono said that both the countries have agreed to cooperate on trade, investment and defence.

"Last year, our trade volume reached $30 billion, the two countries agreed to raise it to $50 billion by 2015 and $100 billion by 2020," Yudhoyono told a joint press conference.

by:IANS