Indonesian president Yudhoyono to be chief guest at R-Day parade

• Indonesian President Susilo Bambang Yudhoyono will be the chief guest at next year's Republic Day parade in Delhi
• Both countries will seek to build on the joint declaration on a new strategic partnership signed by Prime Minister Manmohan Singh and Mr. Yudhoyono during his previous visit here in 2005. The two sides will also attempt to expand economic relations bilaterally and under the aegis of the Association of South East Nations (Asean) of which Indonesia is a founder-member.
• Some analysts view Indonesia as a buffer against China but sources point out that both countries already have a defence pact for developing military technology. Recently C-802 Chinese guided missiles were fitted on Indonesian warships.
• Indonesia has stepped up its defence budget and plans to double it over the next few years. Part of it would be to develop standby forces and a centre for peace-keeping forces, both areas in which India claims expertise.
• Indonesia forms one flank of the crucial Malacca Straits with Malaysia forming the other. The strait is considered vulnerable because of its limited width and the fact that a considerable portion of the world's trade passes through it. Both sides are also attempting to improve trade ties, with Indonesia opening a trade promotion centre in Chennai last year