Japanese Prime Minister Keizo Obuchi and visiting Indonesian President Abdurrahman Wahid agreed on November 16 to set up a panel of experts from Japan and Indonesia to advise the two leaders on a wide-range of issues, Kyodo News reported.

During a meeting at the Japanese prime minister's official residence in Tokyo, Obuchi proposed setting up the new panel as part of efforts to boost bilateral ties, a Japanese Foreign Ministry official said, adding that Wahid welcomed the idea.

Obuchi also promised that Japan would continue to assist Indonesia in its economic reform efforts and in East Timor's peaceful transition toward independence.

Obuchi stressed the importance of East Timor's transition toward independence, saying it is important to Indonesia's stability, the official said.

Earlier in the day, Wahid met with Japanese Finance Minister Kiichi Miyazawa, who reiterated Japan's plan to continue helping Indonesia financially, a Finance Ministry official said.

Wahid, who was elected president of Indonesia last month, arrived in Japan on Monday for a two-day visit.