Indonesia has signed a series of agreements with the United Nations in an effort to improve relations with East Timor.
The high-level accords promote trade and improve cross-border travel.
The head of the U.N. mission in East Timor, Sergio Vieira de Mello, said he could not have imagined better results from the talks.
The United Nations is set to pull out of East Timor in three months when the small nation becomes fully independent.
East Timor voted for independence in August 1999 after 24 years of Indonesian occupation. The balloting set off a wave of deadly violence thought to have been orchestrated by Indonesian troops.
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Megawati Sukarnoputri (Official photo)
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Leaders in East Timor have urged Indonesian President Megawati Sukarnoputri to attend the independence celebrations to show reconciliation efforts after decades of violence.
Mr. Vieira de Mello says her attendance would be an eloquent illustration of how far relations between the countries have progressed. However, Indonesian Foreign Minister Hassan Wirayuda says Ms. Megawati has not decided whether she will attend.