Indonesia and Australia have pressed the re-set button on their relationship, with Prime Minister Malcolm Turnbull announcing that military co-operation between the two countries has been fully restored after Indonesia imposed a temporary freeze late last year.
Standing alongside visiting Indonesian president Joko Widodo on the lawns of Kirribilli House on Sunday, Mr Turnbull said the pair had agreed to the "full restoration of defence co-operation, training exchanges and activities."
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Turnbull and Widodo talk trade
Australia and Indonesia agreed to restore defence co-operation following a bilateral meeting between Malcolm Turnbull and Joko Widodo.
The leaders' joint communique also stressed the need for continuing "freedom of navigation in and overflight about the South China Sea" and highlighted the signing of a Joint Declaration on Maritime Cooperation which Mr Turnbull said would be underpinned by a "plan of action".
But it stopped short of detailing plans for joint naval patrols in the area, a possibility Mr Widodo had foreshadowed in a recent interview.
In a veiled reference to Chinese assertiveness in the region, Mr Turnbull said "we both strongly encourage the countries in our region to resolve disputes in accordance with international law which is the foundation for stability and prosperity."
Mr Turnbull stressed the " deep historical ties" between Australia and its northern neighbour, while Mr Widodo made clear that high on Indonesia's priority list was ensuring Australia gave no succour to the breakaway independence movement in the Indonesian province of West Papua.
"Robust relationships can be established when both countries have mutual respect for each other's territorial integrity, non-interference into the domestic affairs of each other, and the ability to develop a mutually beneficial partnership" Mr Widodo said.
Both leaders cited the Lombok Treaty signed between Australia and Indonesia in 2006 as the "bedrock" of their security and defence relationship. The treaty binds the parties to disallow activities that could threaten the stability of the other.
There was agitation in Jakarta earlier this year when a protester in Melbourne managed to climb onto the roof of the Indonesia consulate and unfurl the Free Papua Movement (OPM) flag.
The suspension of some defence co-operation programs in early January was tied to training materials - reportedly including posters on West Papua - deemed offensive by Indonesian officers who were in Perth on a training course.
In their Sunday statement the two leaders talked up the need for greater investment and business ties and close cooperation on cyber security, people smuggling, transnational crime and terrorism, especially with the threat of foreign fighters returning from Syria and Iraq.
The pair also committed to achieving a bilateral economic agreement by the end of the year, with Indonesia already agreeing to lower tariffs on Australian sugar and to accept more cattle in return for concessions on imported Indonesian pesticides and fertilisers.
Mr Widodo dined at the Lucy and Malcolm Turnbull's private residence on Saturday night and the pair took a stroll through the Botanic Gardens on Sunday morning prior to a formal lunch and ceremonial welcome.
On Sunday afternoon Mr Widodo wound up his flying visit by taking to the stage at an Indonesian community event at Darling Harbour, where he received a rousing welcome from more than 2000 people.