China and Indonesia said Friday in a joint statement that the two countries will further expand trade and enhance cooperation in economic and cultural sectors and on the international arena.

Sino-Indonesian trade "increased steadily" in the past few years, said the statement, which was issued during Indonesian President Susilo Bambang Yudhoyono's four-day state visit to China as guest of Chinese President Hu Jintao.

Meanwhile, the two countries need to promote a more attractive and favorable environment for greater trade and investment cooperation and open up of mutually beneficial new areas of economic cooperation, it said, adding the two sides agreed to try to forge an investment promotion mechanism.

Susilo appreciated China's aid, preferential loan and participation in Indonesia's infrastructure construction, the statement said.

Hu and Susilo expressed satisfaction over the two countries' cooperation in the energy sector, stressing to enhance people-to-people connection and business ties.

The two presidents welcomed an arrangement on Chinese language teaching in Indonesia and exchanged views on the possibility of establishing a center for Chinese culture and the teaching of Chinese language in Indonesia.

They stressed China and Indonesia should enhance cooperation and cope with common challenges to the region. The two sides will co-chair the fifth and sixth ASEAN Regional Forum Intersessional Meeting on Disaster Relief in 2005 and 2006.

On the issue of the East Asian Summit (EAS), both leaders regard that ASEAN shall remain the main driving force within the EAS.

"China respects the consensus reached by the ASEAN on the EAS. Indonesia views that a prosperous, active and dynamic China is good for the stability of the region," said the statement.

The two presidents called for the implementation of action plan for the New Asian-African Strategic Partnership adopted during the Asian-African Summit through the development of concrete and feasible programs and initiatives.

The two leaders discussed the issue of reform of the United Nations.

They agreed that in order to ensure that the UN becomes a "more democratic, fair and equitable" body, reforms should be "comprehensive and aimed at strengthening multilateralism and enhancing the UN's efficiency and effectiveness as well as its capacity to deal with new threats and challenges".

They urged the UN to increase inputs in the field of development and facilitate the realization of the Millennium Development Goals (MDGs).

Both leaders expressed support for reform of the UN Security Council and stressed that countries should not artificially set a time limit or force a vote on specific reform proposals and instead, should uphold the principle of democracy by seeking the most broadly-based consensus through full consultations, said the statement.

(Xinhua News Agency July 30, 2005)