Prime Minister Dr Mahathir Mohamad and Indonesian President Megawati Sukarnoputri agreed to step up cooperation in the fight against terrorism during talks in Kuching, Sarawak today.

"We agreed to cooperate in defense and intelligence sharing to ensure national security," Mahathir told a joint news conference. "We spoke of the need for closer cooperation in the fight against terrorism."

Megawati said Indonesia would press its proposal for an Association of Southeast Asian Nations (Asean) Security Community to enhance regional security.