TOKYO, June 2 (Xinhuanet) -- Japanese Prime Minister Junichiro Koizumi and visiting Indonesian President Susilo Bambang Yudhoyono agreed Thursday to launch negotiations on a bilateral free trade agreement by July.

    The FTA talks are one of four areas Koizumi and Yudhoyono have identified for immediate bilateral cooperation, along with disaster reduction, investment promotion and maritime security, the two leaders said in a joint statement.

    The two sides will conclude the talks for a so-called Japan-Indonesia Economic Partnership Agreement "within a reasonable period of time", covering areas ranging from trade in goods and services to investment, the movement of people and intellectual property rights, they said in a joint announcement.

    Koizumi and Yudhoyono discussed "the vital importance" of strengthening bilateral economic ties through an FTA, and expressed their hope that it will help enhance Japan's comprehensive economic partnership with Southeast Asia, the announcement says.

    Japan has concluded FTAs with Singapore and Mexico, has reacheda basic FTA accord with the Philippines and Malaysia, aims to reach such an accord with Thailand by July, and is holding talks also with South Korea and the Association of Southeast Asian Nations.

    On UN reform, the two leaders agreed that their countries will work together to promote reform "in a comprehensive manner, including Security Council reform based on the models expanding its membership in both permanent and nonpermanent categories," thestatement says.

    On maritime security, the two leaders recognized the importance of the Malacca Strait as a sea lane and called for enhanced cooperation in navigation safety such as against piracy.

    As for the tsunami and quake disasters that hit Indonesia last December and March, the two leaders decided to launch a Joint Committee on Disaster Reduction to help Indonesia develop a disaster mitigation and preparedness system. Enditem