Indonesian President Susilo Bambang Yudhoyono laid a wreath at an East Timor cemetery where Indonesian soldiers massacred dozens of pro-independence protestors 14 years ago.
Yudhoyono's visit to the Santa Cruz cemetery was another step towards reconciliation between Indonesia and the territory it occupied for a quarter of a century, often brutally, before it opted for independence in a UN-sponsored vote.
Indonesian troops opened fire on hundreds of demonstrators who had gathered at the Santa Cruz cemetery in November 1991 to honor pro-independence activist Sebastiao Gomez, who was killed a week earlier by the Indonesian military.
More than 200 people were believed killed in the shooting, which prompted the United States to restrict arms sales to Indonesia and suspend the training of Indonesian soldiers.
A planned protest during Yudhoyono's visit to the cemetery with East Timor Foreign Minister Jose Ramos-Horta Saturday did not materialize. He was instead greeted warmly by about 100 East Timorese, some of whom shook his hand.
The Indonesian president, who served in East Timor as a military officer, then moved on to a nearby cemetery for Indonesian soldiers who died during the occupation.
Speaking after meeting with East Timor parliamentarians, the former general described the tiny country as a "true friend" because, despite its own financial difficulties, it had donated 75,000 dollars for victims of the December 26 tsunami that devastated northwestern Indonesia.
Indonesia remains the worst hit country from the tsunami, with 163,978 people dead or missing. According to the National Disaster Relief Coordination Agency, the number confirmed dead was 126,915 people while 37,063 were listed as missing.
"A friend in need is a friend indeed. I thank all the people of Timor Leste for their attention during our time of distress," Yudhoyono said.
He told a group of about 100 Indonesians living in East Timor that he felt welcomed in the half-island country, where he arrived on Friday for his first visit to Dili since taking office last year.
"I was touched because along the way the people greeted me with enthusiasm. Some people called out my name. This shows that the two countries' relations are excellent," Yudhoyono said.
Yudhoyono had lunch with East Timor President Xanana Gusmao, who spent seven years in a Jakarta jail, before flying back to Indonesia later Saturday.
Speaking after the lunch, Gusmao said the two countries agreed to leave the past behind and look to the future.
"President SBY's visit demonstrates the brotherly and neighbourly relations between Indonesia and East Timor. The two countries are working together to promote common peace and prosperity," Gusmao told reporters, using Yudhoyono's nickname.
Both countries have avoided addressing the military-backed atrocities committed after Indonesia invaded the former Portuguese colony in 1975 and before it pulled out in 1999.
Indonesia withdrew from the territory in a maelstrom of military-backed violence surrounding the UN independence vote. The United Nations alleged that at least 1,400 people were murdered. Whole towns were razed.
An Indonesian tribunal set up to try military officers and officials for atrocities in East Timor has drawn international criticism for failing to jail any high-ranking Indonesians.
The UN has begun a review of the tribunal, but Dili and Jakarta say the move is unnecessary, preferring to focus on a South African-style truth and reconciliation commission to deal with the past.
On Friday Yudhoyono and East Timor Prime Minister Mari Alkatiri signed a border agreement clarifying 96 percent of their mutual frontier and removing one of the last obstacles to reconciliation.