Dean Yates, Jakarta – Indonesian and US defense officials Thursday wrapped up security talks that covered issues from terrorism to piracy, marking a step forward in relations after military ties were slashed in 1999.

The United States imposed curbs on the Indonesian military in response to bloodshed that swept East Timor, when the territory voted to break from Jakarta's often brutal rule, and restoration requires an accounting of what happened.

In a joint statement, both sides agreed on the need to fight terrorism along with regional piracy. No concrete measures to combat terrorism were unveiled, but the two sides agreed to explore bilateral and regional cooperation in fighting piracy, a menace that haunts the vital shipping lanes that pass through the world's largest archipelago.

"Both delegations made it clear that they value [this] dialogue as an important pillar in relations between Indonesia and the United States," said the statement, released after two days of talks, the first in what will be a periodic exchange.

The talks were chaired by Maj.-Gen. Sudrajat, director general for defense strategy at the Indonesian Defense Ministry, and Peter Brookes, US deputy assistant secretary of defense for Asian and Pacific affairs.

Jakarta won support from the US for its efforts to reform the military, a process some human rights activists say has slowed to a glacial pace under President Megawati Sukarnoputri. The statement said Indonesian defense officials gave a briefing on military reform and protection of human rights.

They also gave a presentation on some of Indonesia's trouble spots, including the rebellious provinces of Aceh and Papua, where activists say some of the worst human rights abuses in recent years have been committed by the security forces.

"Both delegations agreed that this [military] reform process should win greater international understanding and support," the statement said, without elaborating. Sudrajat later told a brief news conference the United States had agreed Indonesian military reform was moving in a "good direction." US officials declined to comment after the talks.

No rush

A senior US official said Wednesday the talks should not be interpreted as indicating that the two sides are rushing to resume full military ties. That hinges on Jakarta accounting for the bloodshed and destruction that swept East Timor when the territory voted to break from Indonesian rule in 1999.

Bilateral military ties have been largely restricted by the US Congress to humanitarian and disaster relief exercises since the carnage in East Timor, when pro-Jakarta militias backed by Indonesian soldiers rampaged after a 1999 independence ballot. The result was the US cut arms sales to Indonesia and suspended most forms of military training.

Jakarta has put some officers on trial over the East Timor chaos, but many are sceptical that justice will be served on the armed forces, which operated with impunity under former President Suharto.

Some of Indonesia's neighbors have suggested that Jakarta has not cracked down hard enough on radical Muslim groups as part of its efforts to root out regional terror networks. Jakarta has dismissed the criticism along with the fears about extremist Islamic groups, who make up a tiny minority of the world's most populous Muslim nation.

The next round of security talks are scheduled to be held in the first half of 2003.