Melbourne – Prime Minister John Howard today responded to overtures from Indonesian President Abdurrahman Wahid by praising Mr Wahid's leadership and democratic principles.

"I admire the courage that he's displayed in the time that he's been the president," Mr Howard said, after Mr Wahid reportedly spoke of a desire "not to leave him [Mr Howard] out in the cold".

"He [Mr Wahid] has brought new standards to Indonesia," Mr Howard told reporters in Melbourne after saying he had read Mr Wahid's comments. "He has pioneered an enjoyment of democracy in that country that it hasn't had for a very long time, perhaps ever."

Mr Wahid told the Australian Financial Review that Mr Howard had shown strength in the face of criticism, including harsh words from Mr Wahid.

Relations between Australia and Indonesia suffered great strain after Australia's role in leading a United Nations force in East Timor last year after bloody violence there.

Mr Howard said he was looking forward to Mr Wahid's scheduled visit to Australia in May. "The relationship between our two countries is an extremely important one," he said. "We recognised that because of what happened in East Timor, inevitably there was a difficulty in our relationship."

"But deep down both Indonesia and Australia seek a very close bilateral relationship and I see his vist to Australia in May as an important element in that. The relationship will remain very high on the government's list of priorities as far as foreign affairs is concerned, very high indeed because we are close neighbours, long-standing friends."