Yogyakarta – Five top Indonesian political figures pledged here on Tuesday to set aside their differences and work together to safeguard the country's territorial integrity and economic recovery.

In a statement issued at the end of more than two hours of talks at the Yogyakarta Sultan's Palace, the five said they realized the sharpening conflict among the political elites was crippling efforts to improve people's welfare.

"Therefore we agreed to rebuild the spirit of solidarity between all components of the nation in safeguarding the territorial integrity of the Unitary state of the Republic of Indonesia, while being aware that differences are essential to the attainment of progress," the statement said.

The meeting at the palace brought Indonesian President Abdurrahman Wahid together with parliament speaker Akbar Tanjung, Vice President Megawati Sukarnoputri, national assembly chairman Amien Rais and the host, Yogyakarta Sultan Hamengkubuwono X.

In the statement, read out to journalists by Prince Joyokusumo who had been tasked by the sultan to organize the meeting, the leaders also agreed to give top priority to efforts to overcome socio-economic problems.

"Overcoming the worsening socio-economic conditions of the people has become the main priority and the remedy is the joint responsibility of all components of the nation," their statement said.

The financial markets reacted positively to the talks, with the jakarta stock exchange composite index rising to a high of 496.733 before falling to 489.677 after a bomb blast in Jakarta. The rupiah too remained relatively steady at 8,950 to 8,970 to the dollar. "Regardless of the result of the meeting, it eases political tension," a dealer with Ramayana Artha Perkasa securities said.

Shortly after the talks ended, Rais said that the leaders had discussed "national economic recovery." He declined to elaborate further on the content of the talks but claimed that the meeting had succeeded in reducing tensions among the particpants. "Of course, no question about it," he said.

Hamengkubuwono, speaking briefly to journalists after the talks, said: "It seems the four can communicate well among themselves."

Tension has mounted between Wahid and parliament. His ties with Megawati and Tanjung have also suffered following the sacking of two ministers from his coalition government in April who belonged to the duo's parties.

The government's apparent inability to contain a sectarian conflict in the Malukus, and separatist movements in Irian Jaya and Aceh, as well as a stand-off between the president and parliament have also knocked confidence in the economy and raised questions over Wahid's leadership.

Rais, a staunch supporter of Wahid during the presidential elections at the national assembly in October, has since become a vocal critic of the president.

Many have expressed concern that an August 7-18 general session of the People's Consultative Assembly (MPR) which Rais chairs, will turn into a drive to oust Wahid from the presidency.

But Wahid said after the talks all five had agreed that the MPR convention "is an annual meeting and it will be no more than that." Tanjung, echoing the president, said the annual meeting would be "not more than" just a meeting to listen to a progress report by the president.

A group of 30 students from the local chapter of the Indonesian Muslim Students Association held a peaceful street rally in downtown Yogyakarta as the guests arrived to protest the meeting.