GENEVA - The Indonesian government and separatist rebels from the province of Aceh, signed a truce agreement aimed at ending 26 years of fighting.

"With the signing of this cessation of hostilities agreement between the Indonesian government and the Free Aceh Movement, a victory has been achieved," said chief Indonesian negotiator S Wiryono.

The deal gives autonomy and free elections to Aceh - which lies at the northern tip of the island of Sumatra - in exchange for the rebels disarming

Representatives from the separatist Free Aceh Movement (GAM) and the Indonesian government signed the "cessation of hostilities" agreement at the Geneva-based Henry Dunant Centre for Humanitarian Dialogue which has been working to bring peace to the region since January 2000.

The peace deal is hoped to end the 26-year war in the Indonesian gas- and oil-rich province, which has claimed at least 10,000 lives.

Accusations of bad faith

Human rights workers say more than 1,200 people have died in Aceh this year alone - an average of more than three every day. Many disappear and later turn up dead with gunshot wounds or torture marks beside a road or floating in a river.

Four out of five victims are civilians, the independent International Crisis Group has said.

Ceasefires broke down over the past two years, with each side accusing the other of bad faith.

But since February, the two parties held intensive talks which resulted in a breakthrough in May when both sides agreed in principle to hold elections in 2004 as part of an overall peace plan. AFP