Malaysia and Indonesia today pledged to co-operate in the fight against illegal logging, smuggling and piracy at their common border on Borneo island by increasing security.

Malaysia's defence minister Najib Razak said two new security outposts would be built in 2004 on the border to improve security along Sarawak and Indonesia's Kalimantan.

It would take the number of outposts along the border to five.

Armed forces chief General Endriartono Sutarto, who led the Indonesian delegation to the meeting in Kuala Lumpur, said both countries needed to be aware of the potential for terrorist activities on porous and poorly manned border areas. He added they must also fight drugs, weapons and people-smuggling.

But the meeting, which was attended by some 40 top officials from both countries, focused mostly on the divisive issue of illegal logging.

Sutarto said the practice had to be contained and that both countries would co-operate to fight the menace.

"Yes, there are illegal logging activities. There are bad people everywhere. We are working to overcome it and agreed to increase the number of security posts," he said.

Timber thieves

Sutarto added the two countries had also addressed the problem of border markers being moved, which previous reports said had been done by Malaysian loggers to enable them to steal timber from Indonesia. "It is a problem. But we are tackling it together," Sutarto said.

"I am confident we can co-operate to overcome the threats."

There have been claims and counter-claims in the logging dispute on the huge and underdeveloped island of Borneo, which is divided between Malaysia, Brunei and Indonesia.

Indonesia's forestry department says annual deforestation rates hit 2.4 million hectares last year, with estimated losses in government revenue from illegal logging and timber smuggling of more than US$3.5 billion.

From June 2003, Malaysia banned imports of sawn timber from Indonesia after some international environmental watchdogs accused Malaysia of failing to take action to halt illegal logging, saying it was acting as a laundering centre for illegal logs. Malaysia has denied the allegations.

Najib said Malaysia and Indonesia would continue to conduct joint-training and patrols along the busy Malacca Straits to prevent piracy attacks.

"We will continue to share intelligence to fight trans-border crime," he said. - AFP