Canberra – Indonesia and Australia will set up a tripartite consultative forum to help East Timor solve problems that may arise in its transformation into an independent state, Indonesian Foreign Minister Hasan Wirayuda said here Wedensday.

Hasan made the statement at a press conference after concluding a meeting with Australian Foreign Minister Alexander Downer who also attended the press conference. Hasan said the first meeting of the tripartite consultative forum was expected to be held early next year. He said similar consultative meetings between Indonesian and East Timorese officials had already taken place in the recent past. However, a tripartite meeting involving Australia would give more benefit to all parties, he said.

Downer, meanwhile, said the Australian government hailed the Indonesian proposal for the setting up of the tripartite forum. "I hope relations between the three neighbouring countries will develop well In the future," he said. He said he would discuss the matter with east timor's foriegn minister Ramos Horta next week.

Hasan said the question of Indonesian assets in East Timor had been discussed at a meeting between Indonesian and East Timorese officials. He said Indonesia would provide scholarships for East Timorese people who wished to study in Indonesia. "we will form a foundation with the help of the ford foundation that will provide bigger financial resources for the academic activities of East Timorese students," he said.