Blair in Indonesia

Britain and Indonesia, the world's most populous Muslim nation, will increase cooperation against terrorism and improve understanding between the Islamic and non-Islamic worlds, the countries' leaders said yesterday.

President Susilo Bambang Yudhoyono and visiting Prime Minister Tony Blair were speaking to reporters after two-way discussions and joint talks with Islamic leaders and scholars.

Britain is moving to normalise defence ties with Indonesia and launching an initiative to combat Islamic extremism during Mr Blair's 24-hour visit to the sprawling archipelago of 220 million people, 85 per cent of them Muslims.

"We want in defence terms now to treat Indonesia as it should be, as our friend and our ally," Mr Blair said, "and in respect of counter-terrorism... we are going to work closely together." British officials said this would allow moves such as joint exercises or exchanging military observers. Defence relations had been at a lower level because of Indonesia's authoritarian past.

Mr Blair's visit, the first by a British prime minister in 21 years, seals an improvement in relations between the countries, both of which have been targets of Islamic militant bombings, and marks British recognition of Indonesia's shift to democracy.

The Indonesia stop, the last leg of a week-long tour that also took Mr Blair to Australia and New Zealand, came just over two weeks after US Secretary of State Condoleezza Rice was in Jakarta, also praising Indonesian democracy and leadership.

Washington resumed military ties with Indonesia last year, a move criticised by human rights activists who said Indonesia's military had a long way to go in changing its rough ways.