East Timor and Indonesia signed a border demarcation agreement on Friday shortly after Indonesia's president arrived in Dili for a two-day visit. President Susilo Bambang Yudhoyono and East Timor Prime Minister Mari Alkatiri witnessed the signing by their foreign ministers. "This is a fruit of hard work. Today is a step forward for both countries and it is because of the determination of the people of the two nations," said Alkatiri. He said the agreement covered more than 95 percent of outstanding border issues. Yudhoyono said the signing was "a good foundation for improving cooperation and friendship" with East Timor.