Australia strengthens defence ties with Indonesia

Australia has fortified defence ties with Indonesia, as the southeast Asian nation's leader urged the government to make further commitments elsewhere and help address his country's drug problems.

The two nations struck a deal on a bilateral agreement after Prime Minister Anthony Albanese and Defence Minister Richard Marles hosted negotiations with Indonesia's president-elect Prabowo Subianto in Canberra on Tuesday.

The Australia-Indonesia Defence Cooperation Arrangement will be upgraded to a treaty-level agreement, which means it will be binding under international law.

"It will be a vital plant for our two country's to support each other's security - which is vital to both countries but also to the stability of the region we share," Mr Albanese told reporters.

"Australia and Indonesia are working together to shape the type of region we both seek: one that is peaceful, stable, prosperous and respectful of sovereignty."

The agreement will also improve education links between the two nations and allow them to co-operate more closely in the maritime sphere.

Mr Marles is expected to travel to Indonesia, where he will sign the treaty.

The Indonesian leader thanked Mr Albanese and the defence minister for progressing the defence pact, but also urged Australia to extend its help to other areas like agriculture, food security and narcotics.

"I view the drug problem and the narcotics threat to be of the highest importance in Indonesia and I really value Australian help in this case," he said in Canberra.

Indonesia has notoriously strict drug laws and those convicted of narcotics offences can face the death penalty.

More than 150 people are on death row, mostly for drug crimes, and about one-third are foreigners.

In April, South Australian man Troy Smith was sentenced to six months of medical rehabilitation after an Indonesian court found him guilty of possessing methamphetamine in Bali.

A group of Australians known as the Bali Nine were convicted for attempting to smuggle drugs out of Indonesia in 2005.

Two members were later executed by firing squad.