Members of the Association of South-East Asian Nations (ASEAN) have unanimously agreed on Burma as the next chair of the regional bloc.
Indonesian Foreign Minister Marty Natalegawa told the BBC, the 10 member states believed Burma had made significant progress towards democracy.
"It's not about the past, it's about the future, what leaders are doing now," he said.
"We're trying to ensure the process of change continues."
Chief Political Adviser to the Burmese President Ko Ko Hlaing welcomed the decision and pointed out recent developments in the country.
"Be assured that we are now growing into a democratic society and we will do all our responsibilities and duties as a responsible government, reflecting the desires of the Myanmar (Burmese) people," he said.
But critics said it was to early into Burma’s reform from junta to democracy to reward them with such a post.
US President Barak Obama speaking to the Australian parliament said issues remained that needed to be addressed.
"Some political prisoners have been released. The government has begun a dialogue. Still, violations of human rights persist," he said in the speech, before the decision was made.
"So we will continue to speak clearly about the steps that must be taken for the government of Burma to have a better relationship with the United States."
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