At the summit-level talks at Istana Merdeka Palace, Indonesian President megawati Soekarnoputri and Prime Minister Khaleda Zia agreed on the need for a larger forum comprising the Saarc (South Asian Association for Regional Cooperation and the Asean (Association for South-East Asian Nations) countries in this regard.

During over an hour-long talks, the two leaders discussed bilateral, regional and international issues of common concern, including boosting bilateral trade and economic cooperation.

Focusing on the Iraq issue, Khaleda reiterated Bangladesh's stand for more UN involvement in bringing peace in the war-torn country and allowing the Iraqis to decide their future.

Megawati expressed similar views on post-war Iraq.

Issues of terrorism also came up for discussion and Khaleda and Megawati emphasized sharing of information and intelligence among the Asian countries for effectively combating the problem in the respective countries.

Briefing newsmen on the outcome of the talks, Foreign Secretary Shamsher Mobin Chowdhury termed the meeting 'very fruitful'.

On exploration and extraction of natural resources, the two sides agreed that Patronex and Bapex, the public companies of the two countries, can enter into an effective cooperation and share their experiences.

Indonesia reaffirmed its support to Bangladesh's candidature for the post of secretary general of the Organisation of Islamic Countries (OIC) and assured that Jakarta would also discuss the matter with other OIC countries.

Megawati expressed her hope to see Bangladesh's representation in the next Non-Aligned Movement (Nam) Summit which will also mark the 50th anniversary of the Afro-Asian Conference that led to the formation of the Nam.

The Indonesian president assured the prime minister of her country's support for Bangladesh's membership in the Asean Regional Forum (ARF).

About bilateral trade, Megawati said her government will encourage more Indonesian businessmen to import from Bangladesh to reduce the huge trade gap, with the balance tilted towards Indonesia.

In 2001-2002 fiscal year, Dhaka's exports to Jakarta stood at $5.6 million, while imports were worth $173.6 million.

After official talks, the two countries struck two agreements and two memoranda of understanding (MoU) to boost trade, economic and cultural ties.

Foreign Minister M Morshed Khan and his Indonesian counterpart N Hassan Wirayuda signed the MoUs on establishment of joint commission on trade and on comprehensive trade and economic partnership.

Morshed Khan and Indonesian Trade Minister Rini M.S. Soewandi signed an agreement on trade while another agreement was signed by Morshed Khan and Indonesian minister Igeda Ardika on cultural exchange programme.

Megawati and Khaleda witnessed the signing ceremony at Istana Merdeka Palace.