Australian PM upbeat over Megawati

Australia's role in East Timor angered Indonesia

Australian Prime Minister John Howard has lavished praise on the new Indonesian President, Megawati Sukarnoputri, as the two countries try to forge a good relationship.

Ties were damaged when Australia led a peace mission to the former Indonesian province of East Timor in 1999 where pro-Jakarta militias went on the rampage.

I am encouraged from my first meeting with her that Indonesia's president wants a good relationship with Australia,

Australian Prime Minister
John Howard

Mr Howard, the first foreign leader to meet Megawati since her appointment as president almost three weeks ago, said he was impressed by the new leader's readiness to put the past behind her.

"I personally am encouraged from my first meeting with her that Indonesia's president wants a good relationship with Australia," he said following a courtesy call on the presidential palace shortly after beginning a visit to Jakarta.

"We recognised that there were some differences in the past but, more importantly, there was a great deal of residual goodwill and a recognition of the closeness of our two countries, geographically and strategically," he added.

Howard: Encouraged by first meeting

Mr Howard is also due to meet the vice-president before attending a state dinner.

However the official bilateral talks with Megawati and top government ministers will only be held on Monday, after which he will return home.

BBC Jakarta correspondent Richard Galpin says Canberra is keen to see stability return in Jakarta after the turmoil of recent years.

Human rights

Megawati had been critical of Australia's involvement in East Timor, but she has recently extended the powers of a human rights tribunal which was set up to prosecute cases of abuses in the province.

US trade representative Robert Zoellick is currently in Indonesia

Meanwhile ousted Indonesian President Abdurrahman Wahid has told Radio Australia that he will refuse to meet Mr Howard if a meeting is requested, lashing out at Australia for accepting Megawati as the new leader.

On the eve of the Australian leader's visit, the US announced that it had ordered some of its aid workers out of Indonesia after reports that US interests in the country were under threat from extremists.

The security scare also comes as US trade representative Robert Zoellick is visiting the country.

Police armed with automatic weapons have been stationed outside the US embassy and aid workers for groups funded by the United States Agency for International Development (USAID) have been told to go to Singapore.