The East Timorese president, Xanana Gusmao, yesterday presented to parliament the long-awaited report of the nation's Reception, Truth and Reconciliation Commission but criticised many of the key recommendations and accused the commissioners of "grandiose idealism".

Mr Gusmao recommended that the 2,500-page document not be made public, implying that it would not be in the national interest to do so.

Commissioners and human rights activists reacted with dismay, accusing the former hero of the resistance struggle against Indonesia's 24-year oppressive rule of cowering before "certain interests", both domestic and international, rather than prioritising the people's desire for justice.

East Timor was invaded by Indonesia in 1975 and annexed the following year, a move never recognised by the United Nations. Some 200,000 people were killed during the occupation before it won its independence in a UN-organised referendum in 1999.

The commission, established in 2002, was tasked with looking at all killings during the occupation, including the several thousand committed by Timorese. One of its key recommendations was that East Timor should pursue justice for the victims by prosecuting the alleged military atrocities.

Mr Gusmao told parliament - according to an official English translation obtained by the Guardian - that rather than seeing the prosecution of Indonesian soldiers as the way to justice, "the best justice, the true justice, was the recognition by the international community of the right to ... independence".

The commission conducted scores of town hall meetings and took more than 8,000 statements. Aniceto Guterres, the commission chairman, told the Guardian that the majority of people they talked to wanted to see the perpetrators brought to justice and the victims to receive compensation. "That's what we found; that people want justice," he said. "We knew people weren't going to like our findings and accept them but we didn't work to make certain people happy, we worked to reveal the truth about what happened."

Mr Gusmao said the commissioners had been almost irresponsible in their recommendations. "The grandiose idealism that they [the commissioners] possess is well manifested to the point that it goes beyond conventional political boundaries," he told parliament. "The report says the 'absence of justice ... is a fundamental obstacle in the process of building a democratic society'. My reply to that would be not necessarily."

Indonesia and East Timor have held tribunals into the violence which surrounded the 1999 referendum. All Indonesian military and police personnel prosecuted by Jakarta were either acquitted or freed on appeal. No one has been extradited to stand trial in East Timor.

Mr Guterres said he was "rather disappointed" that the report will remain unpublished for the foreseeable future. Legislators will decide probably in the new year. Amado Hei, a programme officer with the Human Rights Foundation in East Timor, said: "The victims hoped that something would happen with this report but it looks like it won't happen."