Indonesia and the United Kingdom will strive to increase the volume of bilateral trade and investment, Indonesian President Susilo Bambang Yudhoyono and visiting British Prime Minister Tony Blair said here Thursday.

At a joint press conference after meeting with Blair at the State Palace, President Susilo said that Indonesia hopes "the cooperation on trade and investment can be raised in the future."

The president said that Britain is one of the top foreign investors in Indonesia, only staying behind Singapore last year with its investment reaching 1.5 billion U.S. dollars and bilateral trade volume 1.4 billion U.S. dollars.

Blair said that the two countries are entering a new era of relationship with tremendous possibility and opportunity for both sides.

He said that the reform being conducted by Indonesia in the sector of business will attract more British investors.

"There are many British companies that believe Indonesia today is a good place to invest in and we want to explore together how we can we make progress," said Blair, adding that dozens of British businessmen will meet their Indonesian counterparts here on Thursday.

During the meeting, the two leaders also discussed ways to counter terrorism.

Blair said Britain insists on strengthening cooperation with Indonesia in combating the threat, as the two countries have common interest in this matter.

"We now treat Indonesia as our friend and our ally, and in respect of countering terrorism, both countries have common interest," he said.

Blair arrived here on Wednesday on a two-day visit. This has been the first top British leader's visit to Indonesia in the last 20 years.

Source: Xinhua