Australian Defence Minister John Faulkner met his newly appointed Indonesian counterpart here Monday for talks on boosting cooperation between the two countries.
Indonesian Defence Minister Purnomo Yusgiantoro said the meeting covered closer defence ties and joint efforts to stem the growing number of asylum seekers using Indonesia as a springboard to reach Australia by sea.
"Australia wants to increase co-operation on defence matters with us," said Yusgiantoro, who was appointed by President Susilo Bambang Yudhoyono only last week.
He said a draft accord on closer cooperation would be "followed up by the foreign ministry", but he provided no further details of the agreement.
Australia and Indonesia recently announced they had agreed to work on a new "framework" for dealing with asylum seekers.
An Australian customs vessel carrying 78 Sri Lankan migrants who were intercepted off the southern coast of Indonesia's Sumatra island last week is expected to dock in an Indonesian port later Monday.
Yusgiantoro said most the migrants were "seeking a better life".
"Their destinations include New Zealand and Australia. Indonesia is a transit (point)," he said.
"On one hand, they want to improve their lives. On the other, there is a problem of humanity which we have to consider. This is our dilemma."
Australia's centre-left government under Prime Minister Kevin Rudd has said the spike in the number of asylum seekers arriving by sea is due to "push" factors such as unrest in countries like Sri Lanka and Afghanistan.
But the conservative opposition has said the government's softening of the previous administration's rules on unlawful boat arrivals has opened the way for the increase.
