Close relations between Malaysia and Indonesia in terms of investment and economy have benefited both countries, Datuk Seri Najib Razak said.

The prime minister said many issues were discussed during the 11th Annual Consultation between him and Indonesian President Joko Widodo (Jokowi) on Monday with the aim of taking the ties to a higher level.

In terms of investment, the prime minister thanked the Indonesian government for the opportunity given to Malaysian government-linked companies (GLCs) to participate in the republic's infrastructure projects.

He said Jokowi expressed confidence in the GLCs on their ability to shoulder their tasks in terms of building infrastructure projects.

Hence, spurred by the president's confidence, he said there is a possibility that Malaysian companies could be considered for other projects in Indonesia in the near future.

He cited the Cikopo-Palimanan Toll Highway by PLUS Expressways International Bhd, which was opened by Jokowi recently, as one of them.

"This is yet another project that was given to us based on good relations between the two countries," he told Malaysian journalists at the end of his three-day visit for the 11 Annual Consultation and the 12th World Islamic Economic Forum (WIEF) here today.

This was further attested with the signing of a Memorandum of Understanding (MoU) between Sime Darby Bhd, I&P Group Sdn Bhd and SP Setia (Indonesia) Sdn Bhd with PT Hanson International Tbk to jointly develop an affordable housing project, comprising 40,000 units, with a gross development value of RM3.5 billion.

In addition, the two countries also witnessed the signing of a bilateral agreement between Bank Negara Malaysia (BNM) with the Financial Services Authority of Indonesia under the ASEAN Banking Integration Framework (ABIF).

Through this agreement, Najib, who is also finance minister, hopes financial services between the two countries would grow in a more efficient and systematic manner.

On the agreement between the Indonesian government and the Council of Palm Oil Producing Countries (CPOPC) on the setting up of its secretariat, Najib said it was an important initiative.

"We have agreed that Malaysia and Indonesia must work together closely as the oil palm sector is important not only for thousands of smallholders and plantation companies, but also in terms of the export value of the commodity to both countries," he said.

The prime minister said the agreement and immediate action taken by both countries is very important as it also involves joint marketing and research in the quest to widen palm oil's acceptance globally.

Najib also raised economic cooperation between the two countries, asserting that Malaysia is Indonesia's second largest investor and both countries wanted trade between them to reach US$30 billion in the years to come.

He commended Indonesia for taking positive steps to reduce bureaucracy and becoming more investor friendly.