13/09/2011 (Bernama) - Yogyakarta is looking to forging business cooperation with Sabah, says its Governor, Sri Sultan Hamengku Buwono.

He said both Sabah and the Indonesian district could benefit from cooperation in various fields including education and agriculture.

"Yogyakarta does not have a lot of natural resources. But we are at an advantage when it comes to human resources," he said at a luncheon for a delegation from Yogyakarta hosted by the Sabah Economic Development Corporation (SEDCO) here Monday.

Hamengku Buwono also said Yogyakarta was hoping to spur its economy by bringing in foreign investments and was looking at Sabah as a model.

During the luncheon, SEDCO's subsidiary company Perkasa Trading Sdn Bhd signed a memorandum of understanding (MoU) with PT Nasa Natural Nusantara on the research and development, production and sale of organic agrochemical products for agriculture, livestock and fisheries.

The MoU was signed by Perkasa Trading's chairman Nilwan Kabang and PT Nasa Natural Nusantara's managing director Hana Indra Kusuma.

According to SEDCO chairman Mohd Arifin Arif, the deal reflected a preliminary understanding on the appointment of Perkasa Trading as the sole and exclusive distributor of PT Nasa Natural Nusantara's products in Sabah and Labuan.

Under the MoU's early initiative, Perkasa Trading would be carrying out a trial use of PT Nasa Natural Nusantara's fertilisers with the Tambunan Farmers Association in the cultivation of palm oil, ginger, rubber, fruit trees and to fertilise barren land in Tambunan.