SOLO, Indonesia - Former Indonesian dictator Suharto, a U.S. Cold War ally whose military regime killed hundreds of thousands of left-wing opponents, was buried Monday at a state funeral with full military honours as tens of thousands mourned.

Throngs of Indonesians lined the streets to watch a motorcade carry his body to the family mausoleum. Many sobbed and called out the name of the man whose long rule, though harsh, brought stability and economic growth to Indonesia.

President Susilo Bambang Yudhoyono led the ceremony, which began just before noon at the mausoleum near Suharto's hometown Solo, some 400 kilometres east of the capital Jakarta. After a reading of Suharto's military accomplishments, a shot was fired in his honour and Yudhoyono offered a salute.

"We offer his body to the motherland,'' Yudhoyono said.

"His service is an example to us.''

Islamic prayers were said and as his body was lowered, mourners tossed flower petals into his grave. A military band played a dirge.

Suharto died of multiple-organ failure Sunday, after more than three weeks on life-support at a Jakarta hospital. He was 86.

Asia-Pacific leaders recalled Suharto's strengths, praising him for modernizing his country and promoting regional unity -- despite his deeply flawed human rights record.

Singapore's founding father Lee Kuan Yew called Suharto a visionary and "great leader'' who transformed Indonesia into a modern economy.'' Indonesia was "an anchor of stability in the region,'' during his 32-year rule, he said in a letter to the family.

The U.S. also offered its "sincere condolences'' on the death of Suharto, a Cold War ally whose authoritarian regime saw up to a million political opponents killed.

Cameron Hume, the U.S. ambassador in Jakarta, said Suharto was a close ally who led his country through a period of "remarkable'' development.

"Though there may be some controversy over his legacy, President Suharto was a historic figure who left a lasting imprint on Indonesia and the region,'' Hume said.

"President Bush expresses his condolences to the people of Indonesia on the loss of their former president,'' said Gordon Johndroe, spokesman for the White House's National Security Council.

"As one of the founding fathers of ASEAN, President Suharto was among those who had the pioneering vision of establishing a more peaceful, progressive and prosperous Southeast Asian region founded on respect and understanding,'' Philippine President Gloria Macapagal Arroyo said in a statement.

Others were less admiring.

"General Suharto has died in bed and not in jail, escaping justice for his numerous crimes in East Timor and throughout the Indonesian archipelago,'' said the rights group East Timor Action Network.

During Suharto's rise to power in the mid-1960s, between 300,000 and 800,000 alleged communist sympathizers were killed and 300,000 died during military operations in the independence-minded regions of Papua, East Timor and Aceh.

Australian Prime Minister Kevin Rudd called Suharto an "influential leader'' who presided over Indonesia during a period of significant economic growth.

"The former president was also a controversial figure in respect of human rights and East Timor, and many have disagreed with his approach,'' Rudd added.

Foreign Minister Maxime Verhagen of the Netherlands, which colonized Indonesia for several centuries, called Suharto an "important political figure'' whose rule marked "a period of relative stability'' in Indonesia.