Phil Mercer, Sydney – Australia's foreign minister has warned that a victory for separatist rebels in the Indonesian province of Aceh could result in a disastrous security situation in South-East Asia. Alexander Downer says the Australian Government does not support the Free Aceh Movement in its bid for independence.

The Indonesian authorities in Jakarta have launched a military offensive in the secessionist province last week after peace talks were abandoned.

Australia believes a victory by rebels in Aceh could trigger the break-up of Indonesia – the world's fourth most populous nation. Mr Downer insisted the result would be an area of fundamental instability to Australia's north. He said there were enough problems in the Asia-Pacific region without compounding them by the dissolution of Indonesia.

East Timor

Mr Downer has called on the rebels in Aceh to lay down their arms and resume negotiations. He said he was not concerned by the prospect of Aceh becoming an independent Islamic fundamentalist state, but by a break-up of Indonesia.

Australia keeps a nervous eye on its northern neighbours. There is concern about an "arc of instability", which stretches from East Timor, through Papua New Guinea to the Solomon Islands, where law and order have crumbled in the aftermath of an ethnic war. Analysts warn that parts of the Asia-Pacific region are plagued by tribal violence, economic decline and political corruption and could become a haven for terrorists and drug traffickers.

The military campaign is Indonesia's largest operation since the invasion of East Timor in 1975. Almost 25 years later, the province seceded from Indonesian control. Australian troops played a key part in restoring order after East Timor's vote for independence ignited a wave of violence by pro-Jakarta forces.

Mr Downer has indicated his government's position on Aceh is far removed from that of East Timor. Mr Downer said there was no reason for Australia to intervene in the conflict.

The country's ambassador to Indonesia, David Ritchie, has been told by officials in Jakarta that the authorities there were still hopeful of negotiating an end to the fighting with the Free Aceh Movement.