India and Indonesia today signed an agreement for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income.

The agreement was signed by the visiting Indonesian Foreign Affairs Minister Marty Natalegawa and his Indian Counterpart S.M Krishna at the Hyderabad house in New Delhi this afternoon. Both countries also signed the agreed minutes of the 4th meeting of the Joint commission talks held between the two countries this morning.

Addressing the Joint Press conference along with his visiting Indonesian counterpart, External Affairs Minister S.M Krishna said, the talks were extremely fruitful and reviewed the entire gamut of India-Indonesia bilateral relationship including trade and commerce.

He said, both countries enjoy an excellent relationship based on the solid foundation of historical and cultural ties. Mr. Krishna said, both countries are also hopeful of achieving the trade target of 25 billion US Dollars by 2015.

Indonesian Foreign Affairs Minister Marty Natalegawa said, his country enjoys a robust, strong and friendly relationship with India. He said, the two countries have agreed to further strenthening of the bilateral relationship in to a strategic partnership. Mr. Marty Natalegawa said, the India and Indonesia are partners in the Non Aligned Movement and the ASEAN grouping.

(S/B Marty Natalegawa )

In reply to a question, Mr. Marty Natalegawa said, discussion are on to evolve a Code of Conduct for the South China Sea. He said, diffences on the South China sea is a fact, and a Code of Conduct was necessary to ensure the dynamic developments in the region are materialised in a manner conducive to the stability and peace in the region.

External Affairs Minister S.M Krisna said, India had made its stand clear on the issue and favours resolution of all differences for the prosperity of the region and in accordance with international law 

External Affairs Minister S.M Krishna also said, he has conveyed to Indonesian Foreign Minister Dr. Marty that India looks forward to the visit of his Excellency Mr. Yudhoyono, President of Indonesia in December this year for the India-ASEAN commemorative summit.

Indonesian Foreign Minister Dr. Marty M. Natalegawa is visiting India for the fourth round of Joint Commission Meeting at the Foreign Minister-level on Friday. An External Affairs Ministry release says that both sides will take stock of the bilateral relationship and identify areas for future cooperation between the two countries. Foreign Minister Natalegawa will also address the Indian Council of World Affairs in New Delhi on Indonesian views of the world today on the same day.

India and Indonesia enjoy an excellent relationship based on a solid foundation of age-old cultural and commercial linkages.

The relationship was further strengthened following the signing of strategic partnership in 2005.

AIR correspondent reports that Indonesia is an important member of ASEAN and a partner in India's Look East Policy. The bilateral trade between the two countries has touched 20 billion dollars. India and Indonesia enjoy close cooperation in trade and investment, energy, agriculture, science and technology, space, coal, oil and gas, defence and other areas.

India today strongly pushed for early conclusion of a free trade agreement with ASEAN in services and investment and expansion of communication links with the member States of the 10-nation grouping considered one of the world's fastest growing regions. 

Addressing the ASEAN-India Ministerial meeting at Phnom Penh the capital of Combodia, External Affairs Minister S M Krishna highlighted the growing congruence समनुरूपता0 in India's ties with the bloc . 

He emphasised the need for strengthening private sector participation and encouraging cross-country private-public partnerships in improving connectivity between ASEAN nations and India. He said that economic growth is meeting expectations despite the global economic downturn.

Two-way trade between ASEAN and India in 2011-12 reached 80 billion U S Dollars. Mr. Krishana told the annual meeting attended by Foreign Ministers and top officials of the ASEAN countries he asserted that India believes that the early conclusion of the ASEAN-India Services and Investment Agreements would give a strong fillip to the economic engagement. 

India and the ASEAN have already implemented a free trade agreement in goods and are engaged in intense negotiations to widen its base and include services and investments.

The Association of Southeast Asian Nations today welcomed the suspension of European Union sanctions against Myanmar, saying it was the right thing to do at the right time. 

EU nations on Monday put a halt to most sanctions against Myanmar for one year to reward a series of dramatic reforms since direct army rule ended last year.

Foreign ministers from the 27-nation bloc agreed a suspension of measures against almost 500 individuals and more than 800 firms in a meeting in Luxembourg.

North Korean rocket launch, developments in Myanmar and disputes over the South China Sea are expected to dominate Southeast Asia's annual diplomatic summit, ASEAN that begins tomorrow at Phnom Penh in Cambodia. 

The stated focus of the two day Summit is on turning the 10 nations and their combined population of 600 million into a European Union-like community by 2015.

 North Korea is not a member of the group, but some leaders are expected to voice alarm over Pyongyang's plan to fire a long-range rocket this month.

Territorial conflicts in the resource-rich South China Sea will almost certainly be raised.China, Taiwan and ASEAN members Vietnam, the Philippines, Malaysia and Brunei all make various claims on the sea, which China claims in its entirety. 

The Philippines and Vietnam in particular have been at odds with Beijing over the region in recent months, with diplomatic clashes erupting over oil and gas exploration and fishing rights.