12/12/2008 (NST Online) - MALAYSIA and Indonesia will find ways to boost palm oil prices as falling prices will affect the economy of both countries, Prime Minister Datuk Seri Abdullah Ahmad Badawi said.

Abdullah said he raised the matter with Indonesian President Susilo Bambang Yudhoyono during a courtesy call he made here yesterday.

"I will ask the relevant minister and agencies to discuss the matter with the Indonesian authorities as soon as possible."

Abdullah said it was important for both countries to check the decline in palm oil prices over the past few months as the two nations produce 80 per cent of the world's palm oil production.

"Palm oil is one of our important sources of revenue and we will take action based on the suggestions made by the ministry and agencies involved."

The two nations have also agreed to strengthen cooperation to face an anticipated increase in illegal trans-border activities arising from the global economic slowdown.

"Our enemies are criminals, smugglers and human traffickers. Their activities may increase due to the global economic downturn," he said after chairing the Malaysia-Indonesia General Border Committee (Malindo GBC) 37th meeting yesterday.

Abdullah, as the defence minister, chaired the meeting with Indonesian Defence Minister Juwono Sudarsono.

He said price differences across the border would encourage people to smuggle goods and human trafficking could increase if the economic situation worsened.

Therefore, it was crucial for both countries to step up cooperation among their enforcement agencies to tackle the situation.

"We must be prepared, not only on land but also at sea.

"That is why we have rules of engagement so that the agencies can cooperate better and avoid any untoward incident."

Asked whether both countries should deploy more enforcement officers along the border, he said it would be done only if the situation required it.

"If we have to send more staff, then we will do it. This is just a precautionary measure.

"If it did not happen, then it will be better for us."

He also said that cooperation between the two countries in gathering and sharing intelligence had improved since their first meeting in Parapat, Medan, Indonesia, in 1972.

He said the socio-economic initiatives under Malindo GBC had developed communities along the border and improved the facilities in these areas.

From this year, he said the Malindo GBC would hold its meeting every two years instead of annually to give time to agencies to implement the decisions made at the meeting.

On the dispute over the Ambalat petroleum exploration block, he said it was not part of the main agenda in the Malindo GBC meeting and would be handled by a technical committee which had held 13 meetings.

The dispute over Ambalat in the Sulawesi sea surfaced last year after the national oil companies of both countries awarded oil and gas concessions that overlapped.