Australia, Indonesia agree to joint military exercises

Indonesia and Australia will hold joint joint military exercises on a strategic eastern island in the archipelago as the two neighbours seek to strengthen defence co-operation.

Defence Minister Richard Marles and Indonesian counterpart Sjafrie Sjamsoeddin announced the joint air force and naval drills following talks in Jakarta, where they met to discuss security issues.

"We will use the Morotai exercise area in the Maluku Islands for a joint exercise between the Indonesian and Australian air forces. We will also use the Morotai area for naval exercises," Sjamsoeddin told a briefing on Thursday, without specifying possible dates for the exercises.

The agreement comes after Prime Minister Anthony Albanese's visit to Indonesia in May where he and Indonesian President Prabowo Subianto agreed to strengthen defence ties amid regional uncertainty over US demands for greater security autonomy from its partners and the rise of China.

Morotai, the Indonesian island where both nations will conduct joint exercises, is an allied remnant from World War II that was an important location due to the United States' operations in the Philippines and Australia's in Borneo, according to the Australian War Memorial Museum.

Sjamsoeddin highlighted the "excellent" military infrastructure on Morotai, whose location between Asia and Oceania is key for maritime and air operations.

Australia and Indonesia signed a security alliance agreement last August, which Mr Albanese described as "the most significant step" between the two countries, as it facilitated "new co-operation in maritime security, the fight against terrorism, humanitarian aid, and disaster relief."

While Australia and Indonesia have signed defence agreements in the past, Mr Albanese said it was only a starting point for the relationship.

"I do not see this agreement, though, as the last step, just the next step," he told reporters in Jakarta last month.

Mr Prabowo, who came to power in October, said one of his priorities as president is to modernise Indonesia's military.

Security experts have warned Australia to heed Indonesia's concerns about the AUKUS deal and growing US military presence in the region, which Jakarta viewed as increasing strategic competition.

with AAP