Chinese President Hu Jintao and his Indonesian counterpart Susilo Bambang Yudhoyono met in Vladivostok on Saturday to discuss bilateral cooperation and other issues of common concern.

The two leaders were meeting on the sidelines of the annual Economic Leaders' Meeting of the Asia-Pacific Economic Cooperation (APEC) forum.

The well-developed China-Indonesia relations have brought concrete benefits to the two peoples, Hu said, adding that strengthening bilateral strategic cooperation is in the interests of both countries and will serve as a model for the region.

The Chinese president put forward a three-point proposal in a bid to advance bilateral ties in the spirit of mutual benefit and common development.

First, the two countries should reinforce strategic communication, maintain high-level exchanges, bring the existing dialogue mechanisms into full play, and enhance coordination and cooperation in key issues, he said.

Second, both sides should beef up economic and trade cooperation and complete the preparation of a five-year plan in this regard.

Hu added that China encourages its companies to take part in major projects in Indonesia's infrastructure, manufacturing and other fields, and supports the development of Indonesia's six major economic corridors.

Third, the two countries should boost cooperation in defense and security, expand cooperation in maritime affairs and space industry, and promote people-to-people exchanges.

For his part, Yudhoyono said the relations between Indonesia and China have been advancing smoothly on the basis of a strategic partnership established seven years ago.

The Indonesian leader expressed confidence that the two countries will achieve the goal of boosting two-way trade to 80 billion U.S. dollars by 2015.

Indonesia is ready to promote bilateral relations and willing to maintain frequent high-level contact as well as consultation at all levels with China to expand trade and investment, Yudhoyono said.

He said his country welcomes Chinese companies to participate in major infrastructure projects, manufacturing and energy industry.

Yudhoyono also expressed the hope that the two countries would strengthen cooperation in such fields as defense and security, maritime affairs, space, education, science and technology, and tourism.

Hu pointed out that the Asia-Pacific region is also facing a series of challenges in maintaining a rapid momentum of development.

Therefore, China and Indonesia should stick to the correct direction of regional development, he said, adding that both sides should actively promote regional cooperation in all spheres.

On the South China Sea issue, the Chinese president said it is in the common interests of countries concerned to properly handle the issue through dialogue and consultation.

China is ready to work with the countries of the Association of Southeast Asian Nations (ASEAN) to implement the Declaration on the Conduct of Parties in the South China Sea, advance practical cooperation, and jointly maintain peace and stability in the region, Hu said.

China and Indonesia share common interests in safeguarding peace and stability in the South China Sea, he said, adding that China attaches importance to Indonesia's status and influence in the region and is willing to work with it to maintain unity in East Asia.

Echoing Hu, Yudhoyono said the past decade has witnessed a stable and developing Asia-Pacific region thanks to the cooperation between ASEAN countries and China.

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