Jakarta - East Timor Prime Minister Xanana Gusmao met Indonesian President Susilo Bambang Yudhoyono Tuesday in Jakarta to discuss development and bilateral cooperation.

The two leaders witnessed the signing of bilateral agreements on trade, technical cooperation on small and medium-sized industries and technical cooperation in drug and food safety.

"We believe that this cooperation and friendship can give benefit and advantage for our two countries," Gusmao said.

"We also expect that this cooperation could help resolve the poverty problems in Timor Leste," he added, referring to East Timor, which was once occupied by Indonesia, by its Portuguese name.

Diplomatic ties between the two countries became tense after East Timor President Jose Ramos-Horta alleged that elements inside Indonesia were involved in a failed assassination attempt against him in February.

The accusation upset Jakarta, and Ramos-Horta later said he had not blamed the Indonesian government or military.

On Tuesday, Gusmao apologized to Indonesia over the recent remarks by Ramos-Horta.

In return, Yudhoyono, who previously had said Ramos-Horta's statement could hurt ties between the two countries, expressed hope that the issue "will not trigger misunderstanding and disrupt bilateral ties."

Meanwhile, Indonesia's national police chief, General Sutanto, said Jakarta would soon deport to Dili four East Timorese rebels captured in Indonesia and believed to have been involved in the assassination attempt.

Ramos-Horta was shot in the February 11 assault on his residence while Gusmao escaped unhurt from a simultaneous ambush on his convoy.

Indonesia and East Timor had hoped for closer ties after the completion of a 370-page report by the Commission for Truth and Friendship.

The report contains the joint commission's findings on violence in the then-Indonesian province of East Timor before and after a UN-sponsored independence vote in 1999.

However, the commission was forced to delay the submission of the report to the Indonesian and East Timor presidents after the attempt on Ramos-Horta's life.

Witnesses testified before the commission that they saw Indonesian Indonesian soldiers and Timorese militiamen killing scores of unarmed civilians before and after the referendum.

East Timor became an independent nation in 2002 after being administered by the United Nations for more than two years. Before that it had been occupied by Indonesia for 24 years, during which time as many as 200,000 civilians died.

Jakarta denied committing any atrocities during the occupation and has claimed the violence in 1999 was not organized by its armed forces.

Gusmao arrived Monday evening on a five-day visit to Indonesia, his first trip to East Timor's former ruler after he was appointed prime minister in August. (dpa)