East Timor's Prime Minister Jose Ramos-Horta met Indonesian President Susilo Bambang Yudhoyono on Tuesday for talks in Jakarta.
Mr Ramos-Horta was lauded for his approach to independence
Mr Ramos-Horta was appointed premier earlier in July, after months of violence and political tensions.
He said he wanted to thank Indonesia for the support it gave to East Timor during the recent crisis.
The two nations have a tense past, with East Timor breaking away from Indonesia in 1999 after a bitter struggle.
Mr Ramos-Horta fled East Timor during Indonesia's rule and lived in exile, where he became the international face of the East Timorous resistance.
He was awarded the Nobel Peace Prize for his support of non-violence during the struggle.
Tuesday's meeting was the first between Mr Yudhoyono and Mr Ramos-Horta.
The two men discussed economic co-operation and the signing of a border treaty in September.
Relations between the two neighbours are already good, with East Timor downplaying the need for an international tribunal to punish the Indonesian military for human rights abuses during the often brutal 24-year occupation, preferring instead to maintain favour with Jakarta.
More than 180,000 civilians are thought to have been killed or died of mistreatment during Jakarta's rule, according to a recent UN-sponsored report.
Mr Ramos-Horta became prime minister to replace Mari Alkatiri, who resigned last month after criticism of his handling of a wave of violence which left 21 people dead.
The unrest, sparked by Mr Alkatiri's decision to sack 600 soldiers, prompted the government to call for international assistance to restore order.