Mandy Barak said that Dexter envisaged links with Israel in the fields of agriculture, telecommunications, hi-tech and chemicals.

The head of the Israeli association, Danny Gillerman, had suggested that they try to persuade Jakarta to open an economic interests office in Israel.

Indonesian President Abdurrahman Wahid said Saturday that Israel has quietly invested $200 million in Indonesia, the world's largest Muslim-populated nation, via Dutch or US companies.

Indonesia and Israel do not have official diplomatic ties, but Wahid, a respected religious Muslim, said shortly after being elected in October that he wished to open trade relations with the Jewish state.

His proposals were widely criticized at home, especially by the Muslim lobby, with massive street demonstrations last month in the capital and other main Indonesian cities.

Indonesia has been a staunch supporter of the Palestinian cause and many protestors have said trade with Israel would constitute treachery.

Foreign Minister Alwi Shihab last month defended the government's plan, saying it would help improve Indonesia's image abroad, especially with the Jewish lobby in the United States, and its economy.

Indirect Israeli investment in Indonesia already amounted to $20 million a year, Shihab said. "Israel has already expressed its wishes to invest in Indonesia in the field of agro-business and production but because there are no formal ties, this cannot yet take place," he said.

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