Indonesia will open a new consulate in the Federated States of Micronesia as part of a raft of agreements between the two countries.
President of the Federated States of Micronesia, Peter Christian. Photo: AFP
This week Peter Christian became the first Micronesian president to visit Indonesia, holding talks with counterpart Joko Widodo
Indonesia's diplomatic relations with the FSM were previously operated out of its Tokyo embassy.
Diplomatic passport holders will also enjoy visa-free entry between the two countries.
Mr Widodo offered scholarships to Micronesian students wanting to study in Indonesia.
Negotiations are also underway for Indonesia to sell some of its N-219 aircraft to FSM for inter-island transport.