The Queen has praised the UK's strong relationship with Indonesia and said she expected the partnership between the two countries would "continue to flourish" as she hosted a lavish banquet for the nation's president.
In a speech in honour of Susilo Bambang Yudhoyono, the Queen spoke of the "common values" shared between the two nations.
She told her guests in the sumptuous ballroom at Buckingham Palace: "We share a common interest in a successful global economy underpinned by free trade.
"The United Kingdom is the second-largest European investor in Indonesia and we have a strong presence in areas such as financial services, energy and the creative industries.
"A spirit of togetherness and cooperation has been the hallmark of this year, and in this spirit, I am confident that if we work together on our shared aspiration to build a prosperous world based on fundamental freedoms, the partnership between the United Kingdom and Indonesia will continue to flourish."
The Queen told the president, who was guest of honour at the occasion and sat between herself and the Princess Royal: "Your visit marks a further step in strengthening our relationship."
She added: "Under your leadership, Mr President, Indonesia has performed a remarkable transformation.
"It is now a thriving democracy and one of the world's fastest growing economies which is playing a greater role on the international stage."
The Queen also referred to the "shared sorrow" between the two countries in the Bali bombings which happened 10 years ago this month.
She said she and the Duke of Edinburgh, who sat by her side, "remember fondly" their State visit to Indonesia in 1974.