Prime Minister Junichiro Koizumi and Indonesian President Susilo Bambang Yudhoyono agreed Thursday to launch talks for a free-trade accord as part of a comprehensive bilateral economic partnership.

"I am confident (the agreement) will lead to a deeper integration between the two economies," Yudhoyono said in a symposium earlier in the day in Tokyo's Chiyoda Ward.

He and Koizumi said in a joint statement that an agreement covering trade, investment, people flows, technological exchanges and intellectual property rights would enlarge markets in both countries and help enhance Japan's comprehensive economic partnership with the 10-member Association of Southeast Asian Nations.