India, Jan. 25 -- NEW DELHI: India and Indonesia are set to launch negotiations for a Comprehensive Economic Cooperation Agreement (CECA) to cover economic cooperation while trading in goods, services, and investments. The move will also "balance" the two countries' trade interests. Sources have confirmed that India and Indonesia will soon intensify efforts to explore ways and means to deepen trade and investment relations. This move comes amidst the standoff with Malaysia, from which India has been buying the bulk of its palm oil but is now shifting its business to Indonesia as a reaction to Malaysian Prime Minister Mahathir Mohamed's continuous tirade against India.

"The CECA will take further the direction that has already been taken ...