Aceh separatists and Indonesian officials said they had reached a "point of understanding" following a second day of peace talks aimed at ending a conflict that has killed more than 12,000 people.
"We made a lot of progress today [in a] good atmosphere, friendly atmosphere, and we reached what we call a point of understanding," Indonesian Justice and Human Rights Minister Hamid Awaluddin told AFP after the talks wrapped up for the day.
"The meeting was very constructive and we are making progress," agreed the Free Aceh Movement (GAM)'s Stockholm-based spokesman Bakhtiar Abdullah.
The peace negotiations, which are scheduled to wrap up on Sunday, are like two previous rounds in January and February being mediated by former Finnish president Martti Ahtisaari.
More than 12,000 people have been killed since the Free Aceh Movement (GAM) began fighting for independence for the oil-rich province in 1976, claiming Jakarta plunders its resources and the army commits atrocities against its population. GAM has also been accused of abuses.
The first round of talks in January was the first time the delegations had stood face-to-face since May 2003, when the government declared martial law and launched a major military offensive and barring foreign press and aid workers from the province.
The renewed efforts to reach a peaceful solution were prompted by a need for international aid to reach the province on the northern tip of Sumatra island, the territory worst hit by the devastating tsunamis in December.
Organizers and experts on Wednesday said the devastating effects of the tsunami on the region, where more than 126,000 people were killed, could help pave the way towards a lasting peace.
"Due to the tsunami, neither party wants to lose the hearts and minds of the Aceh people. They can't afford to do so now," said the Centre for Humanitarian Dialogue mediation advisor David Gorman, who brokered peace talks between Jakarta and the rebels from 2000 and 2003.
The fact that Indonesia last year held its first direct presidential election, with President Susilo Bambang Yudhoyono winning a large majority in Aceh, also made the timing of the talks opportune.
"It's more legitimate now," Gorman said. "The previous government did not believe in the process... This president is much more favorable. He was part of the previous peace processes," agreed London-based director of the Human Rights Campaign group Liem Soei Liong.
Despite the upbeat comments, the situation on the ground in the war-torn province has threatened to cast a cloud over the ongoing negotiations.
The Indonesian military, which has admitted to killing more than 260 rebels since the December 26 tsunami, killed a local Aceh separatist chief and one of his men on Tuesday, according to the province's Serambi newspaper.
During the first day of talks on Tuesday, GAM asked Jakarta to call a ceasefire, but the issue was not discussed during the second day of negotiations. "It is unnecessary to have a cease fire. The past experience did not work," Awaluddin said categorically.
GAM spokesman Abdullah however said he hoped the ceasefire proposal could be discussed on Thursday or Friday. "It is important to discuss the workable substance first," he said.
Among the issues that have been agreed upon is the autonomy offered to the province shall be described as "self-government of Aceh province within the Republic of Indonesia".
Which term to use, which had previously been a sticking point, "is no longer a problem", according to Matti Kalliokoski, vice president on the board of the Crisis Management Initiative (CMI) foundation organizing the Helsinki. The parties "can now look at what is behind that title, the substance", he said.