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SINGAPORE: Singapore Prime Minister Lee Hsien Loong has said that he had a good retreat with visiting Indonesian President Susilo Bambang Yudhoyono. Speaking to the Singapore media after the meeting on Monday, Mr Lee said both sides reviewed their bilateral and economic cooperation. He said these are going well in several areas, including civil aviation, which has made progress. Mr Lee noted there are now many more flights between Singapore and Indonesia. He said: "The Indonesian airlines have been extending their fleet and building their networks and the Singapore Airlines would also like to fly to Indonesia more, both the traditional destinations and new destinations. I think if we are able to accommodate that, both sides benefit." Progress has also been made in the area of agri-cooperation, where Singapore is importing more fruit and vegetables from Indonesia, and Mr Lee sees potential to do more. One area that the Mr Lee hopes to see greater progress is cooperation on environmental issues, in particular, trans-boundary haze. Mr Lee noted the haze problem was evident in Singapore last week and that this was not good for countries in the region. He said Singapore has had cooperation with the province of Jambi, to work with the provincial government to mitigate the haze problem. He said while the cooperation worked well, the agreement has lapsed. Mr Lee said he has asked President Yudhoyono, if the agreement could be renewed and the work taken forward. He said: "The president agreed with me and he will encourage the governors of South Sumatra and Jambi to continue working with us. The haze problem continues, for example last week you would have notice there was a definite haze in the air; you could smell it, you could see it. I don't think that is good for any of the countries in Southeast Asia." Beyond bilateral ties, Singapore and Indonesia are also working closely towards the grouping's next milestone - the ASEAN Community due in 2015. Both agreed on the importance of reaching the milestone "solidly". The region's security and the South China Sea territorial dispute were of concern to both leaders. Mr Lee said: "We agreed on the importance of encouraging all the participants to be restrained, the claimants to exercise restraint and to resolve this peacefully and in accordance with the international law including the UNCLOS, UN Convention on the Law of the Sea. It is not a problem which is going to go away soon. But if it is not handled well and there is a mishap or escalation which may not have been intended, it changes the climate in Southeast Asia. " Both leaders also agreed to institutionalise the cooperation that exists between both countries. Earlier, the foreign ministers of both sides signed a Memorandum of Understanding on cooperation in the fields of diplomatic education and training between the diplomatic academies of Singapore and Indonesia. The signing ceremony was witnessed by the two leaders. Both Mr Lee and President Yudhoyono will head to Brunei this week for the 22nd ASEAN Summit. www.channelnewsasia.com/news/singapore/leaders-of-indonesia-s-pore-meet-to-disc/647362.html