The Indonesian government has expressed an interest in investing in oil and mining infrastructure, among other industries, in East Timor.

"Economic cooperation is vital to developing infrastructure, trade and tourism in East Timor," said Teuku Faizasyah, the presidential staff for international relations, at a press conference after a meeting between President Susilo Bambang Yudhoyono and East Timor's Prime Minister Xanana Gusmao at the Presidential Palace on Tuesday. "Indonesia is willing to invest in the oil and gas sectors," he said.

The Indonesian government was responding to a bid from the East Timor government to encourage Indonesian investment in the country. "The Indonesian government positively welcomes the invitation," Teuku said.

Indonesia on Tuesday also offered its neighbor export credit facilities to purchase military equipment. But Teuku could not confirm the value of the export credit, as it would be discussed in further bilateral meetings between the two heads of state. Yudhoyono and Xanana on Tuesday witnessed the signing a number of memorandums of understanding (MoU) by ministers from the two countries – including MoU on education and training, tourism and trade, infrastructure development, technical cooperation to decentralize government sectors, marine and fisheries, and transportation.

Prime Minister Xanana is scheduled to remain in Indonesia until March 25. After his meeting with the president on Tuesday, Xanana was scheduled to give a public lecture at the University of Indonesia.