
"We are both encouraged that political changes in Myanmar (Burma) are on course" said Steinmeier after a meeting with Wirajuda in the Indonesian capital Jakarta.
Burma's government announced this month it will hold the referendum and Wednesday Xinhua news agency reported that the military announced ballots are to be cast in secret and counting to begin in public as soon as voting closes.
Wirajuda welcomed Burma's constitutional referendum as well as the multi-party elections planned for 2010.
"It is probably the first time that Myanmar's government has set such a concrete framework," said Wirajuda.
For the steps to democracy to succeed, the support of China and all neighbouring countries is needed, said the German minister, adding that "an important signal for change in Burma would be the release of political prisoners."
Burma, a member of the Association of South-East Asian Nations (Asean), has been internationally criticised for the government crackdown on monk-led protests in September. The actual death toll and the number of people still in prison remains a mystery in Burma.
In his discussions, Steinmeier commended Indonesia for its progress since end of the Suharto dictatorship a decade ago. Later Wednesday he is scheduled to meet with Persident Susilo Bambang Yudhoyono and Asean General Secretary Surin Pitsuwan.
Steinmeier began his five-day tour of Indonesia Tuesday and next heads to Singapore and Vietnam.//dpa