Indonesian President Susilo Bambang Yudhoyono hailed Washington's decision to resume some military aid as marking a new chapter in relations, but other officials and politicians were more cautious.

"This is a new page, a new chapter in the strategic relations between Indonesia and the United States which have since 1999 gone through substantial ups and downs in relation to its defence cooperation," Yudhoyono said.

"The essence is that the sanction, or embargo imposed by the United States, has been lifted," the president told ElShinta radio in New Delhi, where he is on an official visit.

Yudhoyono said the US International Military Education and Training (IMET), Foreign Military Sales (FMS) and Foreign Military Financing (FMF) programmes were now "back to normal."

IMET was resumed in February and the decision to resume sales of non-lethal military equipment was taken in May.

In Washington, US State Department spokesman Sean McCormack said on Tuesday that resumption of FMF would help anti-terrorism efforts, maritime security and disaster relief. He said the US government planned "to provide assistance for specific military programs and units that will help modernize the Indonesian military."

US military dealings with Indonesia have been restricted since 1991 when Jakarta's forces launched a bloody crackdown on pro-independence protesters in East Timor. Sanctions were tightened after a new wave of violence there in 1999.

"We welcome the decision for the waiver, this is an appreciation of the various progress achieved in Indonesia," said foreign ministry spokesman Yuri Thamrin, after studying reports on the US decision.

Other Indonesians were more cautious about the US move. The military said it would not comment until President George W. Bush presented the proposals to Congress.

MP Joko Susilo, from the parliamentary commission dealing with security affairs, said a complete lifting of the embargo on US military aid and sales of equipment was "more important" than the current waiver.

However, Susilo added that at the least, the decision "is certainly a good indication that the US realizes that there is the goodwill from Indonesia in areas of military reforms and democratization in general."

Bonar Tigor Naipospos, of the East Timor Solidarity (Solidamor) group set up to defend human rights in East Timor, agreed that it was too early for Jakarta to rejoice. "We'll see how Congress reacts to this because many of them deem the Indonesian armed forces have not completely reformed themselves," Naipospos said.

The US decision was taken because Washington realizes it needs Indonesia's help in its global "war on terror", Naipospos said. "They know that Indonesia, as the world's largest Muslim country where many radical Muslim groups reside, can play an important role as important partner for them," he added.