In his opening remarks at the State Function room, Mr O'Neill said short discussions tomorrow will highlight issues in a more amicable and matured way.
O'Neill remarked on Indonesia and Papua New Guinea having different views on current issues, however stating that there must be an understanding for peace between the Melanesian brother provinces.
Prime Minister O'Neill said MOU's will be signed to reflect a modern relationship between Papua New Guinea and Indonesia.
He said Indonesia and PNG are not only neighbors but close friends, adding that new MOU's will be signed on development agendas; combating trans-national crimes and the petroleum sector.
O'Neill emphasised for peace in West Papua and to reduce tension for that matter. He said the two countries have a strong bilateral relationship and that will go a long way.
In response, Indonesian President, Joko Widodo, thanked the PNG government for the hospitality, saying PNG is an important neighbor to Indonesia.
President Widodo said the two countries not only share the same land mass but views and hope for a better relationship and cooperation.
President Widodo said the visit is to strengthen bilateral relationships through key sectors for economic benefits to people of the two nations.
The banquet dinner was attended by PNG cabinet Ministers, Indonesian President, Joko Widodo and his wife, Indonesian government ministers, stakeholders and senior public servants. [EMTV]