German Foreign Minister Frank-Walter Steinmeier and his Indonesian colleague Hassan Wirajuda Wednesday welcomed Myanmar’s junta government allowing a May referendum on a draft constitution, but called on the military to release political prisoners. “We are both encouraged that political changes in Myanmar are on course” said Steinmeier after a meeting with Wirajuda in the Indonesian capital Jakarta.

Myanmar’s government announced this month it will hold the referendum and Wednesday Xinhua news agency reported that the military announced ballots are to be cast in secret and counting to begin in public as soon as voting closes.

Wirajuda welcomed Myanmar’s constitutional referendum as well as the multi-party elections planned for 2010.

“It is probably the first time that Myanmar’s government has set such a concrete framework,” said Wirajuda.

Indonesia’s foreign minister said he supported the mission of UN envoy to Myanmar Ibrahim Gambari for national reconciliation and welcomed a decision by the military to allow Gambari to push up his visit to March from April.

For the steps to democracy to succeed, the support of China and all neighbouring countries is needed, said the German minister, adding that “an important signal for change in Myanmar would be the release of political prisoners.”

Myanmar, a member of the Association of South-East Asian Nations (ASEAN), has been internationally criticized for the government crackdown on monk-led protests in September. The actual death toll and the number of people still in prison remains a mystery in Myanmar.

As a member of ASEAN, Wirajuda said Indonesia sees the importance to engage Myanmar to “ensure that the process that they are now undertaking could result in the solution that is also acceptable to the international community.”

Other issues being discussed between the two foreign ministers were climate change, efforts to boost bilateral ties and bans imposed by the European Union on Indonesian airlines.

“Both sides share the view to settle the problem as soon as possible by promoting cooperation at a technical level,” Wirajuda told a joint press conference after their talk.

Indonesia “welcomes” an offer by Germany for expertise from Lufthansa airline to Garuda Indonesia, Wirajuda said, saying that such an offer would be benefit for the country’s national flag carrier.

Last year, the EU banned 51 Indonesian airlines, including Garuda Indonesia. The ban was imposed after a Garuda jetliner crashed upon landing in the central Java city of Yogyakarta, in March 2007, killing 21 people. On New Year’s Day of 2007, a plane belonging to budget carrier Adam Air plunged into the sea in eastern Indonesia, killing all 102 people aboard.

On global climate change, both ministers agreed on the need to carry on the initiatives from December’s Bali climate change conference.

“We must work together to ensure that the follow up process would be productive, to reduce new commitment to replace the old arrangement under the Kyoto Protocol to be ready by 2012,” Wirajuda said.

“We have to do more, namely on how we can develop cooperation as from now on without waiting for 2012 to mitigate climate change,” he said, adding that Indonesia, one of the world’s largest tropical forest nations, is taking an initiative to convene a conference of the 34 tropical forest countries this year.

Steinmeier hailed Jakarta’s efforts to combat illegal logging under difficult conditions.

Domestic and international environmental groups claim that Indonesia lost an estimated 3.7 million hectares of forest lands annually between 2000 and 2005, of which 80 per cent is cut illegally.

President Susilo Bambang Yudhoyono declared in late 2005 a crackdown against deforestation in the country, and promised harsh penalties for officials involved in illegal activity.

Steinmeier also met Wednesday with President Yudhoyono and ASEAN General Secretary Surin Pitsuwan.

Steinmeier began his five-day tour of Indonesia Tuesday and next heads to Singapore and Vietnam.