NZ promised help in Asia

President Susilo Bambang Yudhoyono says he will help New Zealand cement ties in Asia. Picture / Mark Mitchell

Indonesia's first directly elected president has ended his official visit to New Zealand promising his country is on the verge of a great democratic transformation.

President Susilo Bambang Yudhoyono's two days in Wellington were largely symbolic, but have been interpreted as a significant boost to New Zealand's ongoing efforts to secure strong allies in Asia.

He has pledged his support to New Zealand attending the first East Asia summit of regional leaders in Malaysia later this year (despite the host's reluctance to extend an invitation) and has backed closer ties with the Association of South East Asian Nations.

Although Mr Yudhoyono's embrace of New Zealand is influenced by pragmatism - Indonesia's economy remains stagnant, crippled by corruption and a lack of investment, while terrorist threats risk regional stability - Prime Minister Helen Clark has also fronted up to the reality of ensuring New Zealand has better links into Asia.

She raised the difficult issues of separatist tensions in Aceh and West Papua - but by praising Mr Yudhoyono's election promises to resolve the conflicts peacefully.

Mr Yudhoyono, who is just the third Indonesian leader in 33 years to make a state visit to New Zealand, did not shy from talking about issues within Indonesia's domestic politics, or relations with newly independent East Timor, at a press conference with Helen Clark.

He said Indonesia wanted to maintain its national unity and territorial integrity in the face of separatist movements.

"But we have to manage and solve the problems that happen in Aceh and Papua, peacefully, properly and wisely.

"It's to be understood by our friends abroad that Indonesia is in the process of reforms, and democratisations. Military reform is under way. [Talking] about respecting human rights is one of our big agendas."

At a state banquet held at Parliament on Wednesday night, Mr Yudhoyono said last year's democratic elections signalled a change for the country.

"We will become a nation whereby democracy, Islam and modernity will flourish together,"he said. "We will become an oasis for peace, growth and stability."

Helen Clark said closer police ties had been discussed and a memorandum had been signed on the issues of people-smuggling and immigration.

Talks about restoring military ties, frozen since the killing of East Timorese by pro-Indonesia militia in 1999, were not held.

However, Mr Yudhoyono referred to Indonesian and New Zealand defence forces working together to save lives in the aftermath of the Boxing Day tsunami, which killed at least 126,000 Indonesians.

Talking points

* Helen Clark and President Yudhoyono
* Developed a formal understanding on people- smuggling and immigration.
* Pushed for more Asean co-operation, and support for New Zealand attending East Asia summit.
* Set up a joint taskforce to explore boosting Indonesian students here.
* Agreed to expand the $822 million annual two-way trade.