The agreement is a victory for the Association of Southeast Asian Nations (ASEAN) currently headed by the Indonesian Foreign Minister Marty Natalegawa who took on a high profile role in mediating the dispute.

After hosting a meeting in Jakarta between the Cambodian Foreign Minister and his Thai counterpart, Indonesian Foreign Minister Marty Natalegawa announced that a unique arrangement had been reached to end the violent clashes between the two countries.

Both sides have been fighting over a territory near a historical Hindu Khmer temple on the Thai-Cambodian border.

The Foreign Ministers have agreed to an unofficial ceasefire, to allow in unarmed Indonesian military and civilian observers to enforce the ceasefire, and to hold further bilateral talks with Indonesian participation in the near future.

Natalegawa said he is not concerned that the ceasefire is unofficial as long as both sides adhere to it.

ASEAN has a strict policy of non-interference in member states' internal affairs and has been criticized for doing too little to resolve conflicts and preserve regional security. But Natalegawa say when the conflict began in early February, he saw a role for ASEAN to play.

While the ceasefire is a significant breakthrough, Natalegawa says the mediation process is just beginning and finding a permanent solution to the border dispute will take more time and negotiation.