Indonesia and India yesterday signed business deals worth $15.1 billion and set an ambitious target of doubling trade in five years as Asia’s two biggest democracies moved to strengthen ties.

The 18 pacts spanning energy, infrastructure, manufacturing, services and other sectors were signed in the presence of visiting Indonesian President Susilo Bambang Yudhoyono in New Delhi.

The Indonesian president will be India’s chief guest at the country’s Republic Day celebrations today, an invitation reflecting New Delhi’s “Look East policy” aimed at boosting relations with its Asian neighbours.

“I hope this visit will create new opportunities in our bilateral cooperations, including economic cooperation and people-to-people contact,” Mr Yudhoyono told Indonesian and Indian business leaders in New Delhi.

“We are growing stronger as economic partners,” Mr Yudhoyono said. “There is so much we can do together.”

Mr Yudhoyono, who arrived for a state visit Monday accompanied by a dozen senior ministers, held talks with Prime Minister Manmohan Singh earlier in the day.

The two sides also signed cooperation agreements on fighting terrorism, money-laundering and other criminal activities.

Mr Yudhoyono said the two countries had set a goal of doubling trade to $25 billion by 2015.

The announcement came as the countries said they had begun negotiations on a market opening pact to reduce tariffs and goods and services to boost trade.

Trade volumes between the two countries have tripled to $12 billion from $4 billion in 2005. Agreements were signed by a number of key Indian companies including the Tata Group and infrastructure heavyweight GVK, the company building Mumbai’s new airport.

GVK will build international airports on Indonesia’s resort island of Bali and in Yogyakarta, a city in central Java.

GVK chairman Krishna Reddy told reporters the deals were worth $3 billion to $5 billion.

“We are very excited by the opportunity to create new landmarks in Bali and Java,” Mr Reddy said.