The first visit to Indonesia by a Chinese premier in 11 years started smoothly yesterday, with Indonesian ceremonies giving a friendly gloss to the signing of several economic agreements. Zhu Rongji arrived for a five-day trip to the country that said China was behind an alleged communist coup in 1965 and froze ties with Beijing for two decades. But newspaper editorials issued warm welcomes to Mr Zhu and analysts said the visit marked an important new phase in what could become a crucial relationship. East Asia's two largest countries have learned to concentrate on economics rather than politics. Mr Zhu will sign a co-operation agreement on tourism after China placed Indonesia on its official list of approved tourist destinations. Indonesia also expects some form of financial assistance from China, although details remain unclear. More important for China will be Mr Zhu's efforts to bring the Bank of China back to Jakarta. The bank closed when diplomatic ties were suspended in 1967. Trade ties were restored in 1985 and full diplomatic relations in 1990. 'This is potentially an extremely important relationship,' said veteran economic and political adviser James Castle, head of the Castle Group. 'I think it shows China has given external relations in South East Asia a very high priority. They have a very sophisticated and co-ordinated programme to raise the profile of China through trade, investment and diplomatic efforts.' The relationship with Indonesia is based on healthy trade ties. Indonesian and Chinese officials 'have no illusions about each other and have left the historical baggage behind', another analyst said. The most work on repairing links with China was done by former Indonesian president Abdurrahman Wahid, who visited Beijing, freed up Chinese cultural expression at home, attended Confucian ceremonies and even received treatment from Chinese acupuncturists while in office. Chinese sources said they expected the relationship with President Megawati Sukarnoputri to be just as warm. Her father, founding president Sukarno, was a firm friend of China - a relationship some historians say was used as an excuse by his military rivals to unseat him. But Indonesia and its neighbours are concerned about China's growing economic strength, due to be heightened through its membership of the World Trade Organisation. Mr Zhu is expected to try to allay such fears. Mr Zhu will meet the chairmen of the two houses of Parliament, Akbar Tandjung and Amien Rais, today, as well as leaders of the Indonesian Chamber of Commerce and Industry and the Association of Indonesia-China Economic, Social and Cultural Co-operation.