Matti Huuhtanen – Indonesian government and rebel negotiators discussed proposals for amnesty and self-government Sunday in the fourth day of talks in Finland aimed at ending the decades-old separatist conflict in Aceh province, the Finnish mediator's office said.

The talks were upbeat and progress was reported between the Indonesian government and the Free Aceh Movement, said Maria-Elena Cowell, a spokeswoman for former Finnish President Martti Ahtisaari. A peace process that failed in 2003 was revived under the Ahtisaari's mediation after last year's Asian tsunami brought the two sides together.

"The talks are constructive. They are advancing," Cowell said. The current round of talks ends Tuesday.

Sunday's topics included proposals by the Free Aceh Movement for amnesty to rebels and self-government. Previously, the rebels had demanded full independence, but have agreed to opt for a form of self-government at the Finland brokered-talks, mediators said.

"Exactly what is meant by self-government is one of the central issues, and who is considered to be eligible for amnesty is another," said Meeri-Maria Jaarva, a member of Ahtisaari's mediation team. Jaarva said individual issues would not be decided separately. "Nothing will be agreed individually unless everything is agreed," she said.

Indonesian President Susilo Bambang Yudhoyono has said Jakarta will not allow the oil- and gas-rich province to separate from the rest of the country, but would allow it a greater say in running its affairs. The Indonesian government has some 35,000 troops in the province of 4.1 million, where more than 12,000 people have been killed in the conflict.

Both parties are hoping to reach an agreement by July or August, Jaarva said. Jaarva said they hoped to agree on a political role for rebel leaders – many of whom have been exiled in Sweden for decades.