Malaysia, Indonesia leaders meet to iron out issues

Indonesian President Susilo Bambang Yudhoyono, who arrived in Malaysia on Thursday for a three-day visit, held talks with Malaysian Prime Minister Abdullah Ahmad Badawi at the latter's office in Putrajaya.

In a joint press conference later in the day, Abdullah said they have agreed to establish an eminent persons group to help resolve bilateral problems that often crop up.

''Among its functions are to constantly monitor, discuss and find solutions or give views to the respective government so that we can decide what to do and how to go about it,'' he said.

Seven members would be appointed from each country to join the group, which would tackle issues like culture, religion and economy.

The two neighboring countries may share religious and cultural links, but relationships have recently been testy.

Topping the complaints from Indonesia is the ill-treatment of Indonesian workers in Malaysia.

There have been many widely publicized cases of abuse of workers such as the one involving Nirmala Bonat, whose Malaysian employer is now on trial for allegedly scalding her with a hot iron.

Bonat now lives in a temporary shelter at the Indonesia Embassy in Kuala Lumpur along with dozens of other maids who escaped from their abusive employers.

Yudhoyono met Bonat on Thursday. He also received a detailed explanation from Abdullah on the Bonat issue besides other high profile cases that have sparked several anti-Malaysia street protests in Indonesia.

He told reporters that there currently are 17 high-profile abuse cases pending in the Malaysian courts.

''Justice must be upheld everywhere,'' Yudhoyono said. ''We want our workers to be protected and treated well. On the other hand, I urge Indonesians here to follow the Malaysian laws.''

Some 60 percent of over 2 million foreign workers in Malaysia are from Indonesia. Most work on plantations or in factories or as maids.

Other thorny issues include Malaysia's use of folk songs and dances in their tourism campaign which Indonesia claims are Indonesian.

On the economic front, bilateral ties are rosier.

On the sidelines of the leaders' meeting, Malaysian International Trade and Industry Minister Rafidah Aziz and her Indonesian counterpart Mari Elka Pangestu inked a memorandum of understanding to establish a joint trade and investment committee to address issues and recommend measures to enhance bilateral trade and investment.

''This will also enhance the networking between Malaysia and Indonesia's businessmen, thus creating more business opportunities and market access,'' Malaysia's trade ministry said in a statement.

Indonesia was Malaysia's 10th largest trading partner in 2006 with total trade of $9.2 billion, an increase of 14 percent from 2005. Between January and November 2007, total trade had reached $10 billion.

Between January and October 2007, Malaysia approved investments amounting to $11 million from Indonesia, mainly in chemicals and chemical products, plastics products and transportation equipment.

During the same period, Malaysian invested $298.6 million in Indonesia.//Kyodo News - January 11, 2008