Prime Minister Malcolm Turnbull has committed to step up the fight against terrorism in a one-on-one meeting with Indonesian President Joko Widodo.
The Indonesian President is in Sydney for the weekend on a whirlwind first official visit to Australia. The pair had dinner together in Sydney on Saturday night and took a morning walk through the city's Royal Botanic Gardens on Sunday.
Addressing media, Turnbull said counter terrorism was high on the agenda for both nations.
"As the terrorism threat evolves so must our joint efforts including to manage the threat poised by foreign fighter returning from the Syrian and Iraq conflict zone," he told reporters.
"So our respective ministers have recently announced $40 million for the second phase of the Australia-Indonesia partnership, which supports collaboration on law enforcement and security matters."
Turnbull also said some tariffs would be eased between the two nations and announced the establishment of new consular offices in Indonesia's second largest city, Surabaya.
Earlier, the PM emphasised the strength of the Australia-Indonesia relationship.
"It's a very strong friendship that gets stronger all the time," he said.
"We're working towards the comprehensive economic partnership ... We're increasing our trading links and investment."
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