Robert Go, Jakarta – Chinese Prime Minister Zhu Rongji, the first senior Chinese leader to visit Jakarta since diplomatic ties resumed in 1990, yesterday announced a 40-million-yuan (S$8.9-million) gift to aid Indonesia's infrastructure development.

Officials accompanying Mr Zhu also said that China had assured Indonesia that the country and the region had nothing to fear from China's ascendancy as an economic power.

Mr Zhu, in brief remarks after talks with President Megawati Sukarnoputri, announced the gift and said Beijing continued to support "all Indonesian efforts to guard its unity and territorial integrity, as well as to rebuild its economy".

Beginning what may be a week of successful diplomacy for the Megawati government, Chinese and Indonesian officials yesterday also signed agreements on tourism, cultural education, closer cooperation between their central banks and agriculture.

Chinese Deputy Foreign Minister Wang Yi said at a separate press conference that Indonesia – and Asean by extension – had nothing to fear from an economically resurgent China, saying his country could contribute to development in the rest of Asia. "These past few years have seen the emergence of a new relationship pattern between China and Indonesia," he said. "We trust each other more and this could lead to closer economic ties."

According to Mr Wang, officials from the two sides will soon discuss deals to increase Indonesian exports to China and examine ways to increase cooperation to improve stability in Indonesia and the region. "If Indonesia can better guard stability and security domestically, it can attract more investments, including from China," he said. "Both Indonesia and China are big, developing countries with important roles in Asia and responsibility to preserve stability in the region."

China-Indonesia trade was worth US$7.5 billion (S$13.67 billion) last year with China importing oil, timber and other raw products from Indonesia. In exchange, China sent out electronics, automotive parts and other factory-processed goods to Indonesia.

During his four-day visit, Mr Zhu and his delegation will meet Indonesian business leaders and travel to Yogyakarta and Bali to take in some of Indonesia's cultural and tourist attractions.