Anthony Albanese has pledged closer diplomatic ties with Indonesia as the Asian nation looks set to become one of the world's largest economies.
The prime minister held talks on Monday with Indonesian President Joko Widodo at the Bogor Palace in Jakarta on Mr Albanese's first full day in the country during the bilateral visit.
The two leaders discussed trade, climate and a strategic partnership between the two countries, with Mr Albanese also pledging to rebuild Indonesian language education in Australia.
Mr Albanese said Australia's partnership with Indonesia would be critical amid global economic uncertainty.
"Indonesia is on track to be one of the world's five largest economies, revitalising our trade and investment relationship is a priority for my government," he said at a joint media appearance with the president.
"I have a lot of respect for President Widodo's high ambitions for Indonesia's future, and I share his optimism."
Economic ministers from the two countries are set to meet regularly to carry out work on the comprehensive economic partnership agreement between Australia and Indonesia.
Mr Widodo said he was pleased Indonesia was Mr Albanese's first country he visited for bilateral talks since he became prime minister.
"It shows the good relations between the two nations. Mr Albanese is not a new person to me, we met in 2020," he said.
The two leaders also discussed economic issues, education and health, food security, as well as the situation in Ukraine and partnerships on developments in the Indo-Pacific.
"Strategic competition in the region must be well managed to avoid open conflict," Mr Widodo said.
"The culture of peace and strategic trust needs to be strengthened continuously."
Mr Albanese pledged he would attend the upcoming G20 leaders' summit, which is being held in Bali in November, with Indonesia holding the presidency of the organisation this year.
The prime minister said Australia would also offer technical expertise to Indonesia as the country builds its new planned capital city Nusantara.
Mr Albanese also recommitted Australia to memorandums of understanding on cooperation in the Pacific, as well as agriculture.
Australia will provide 10 scholarships for Indonesians to complete postgraduate degrees in Australia, studying in fields such as sustainable energy and digital transformation.
The prime minister also emphasised strengthening relationships with Indonesia as well as the broader southeast Asian region.
"ASEAN and ASEAN-led institutions are at the absolute centre of our vision for the Indo-Pacific," Mr Albanese said.
"This also means supporting Indonesia's leadership in the region."
The prime minister was given a ceremonial welcome upon his arrival to the palace, before Mr Albanese planted a tree and rode a bike around the grounds with the president.
Mr Albanese said he was deeply touched by the Indonesian president's suggestion of the bike ride, given many from humble beginnings in the country use the transport to get around for essentials and their daily lives.
"I look forward ... to hosting you in Australia for our next annual leaders' meeting ... although I can't promise a bike ride around Lake Burley Griffin," Mr Albanese said to the president during the joint statement.
Following the talks with the Indonesian president, Mr Albanese will then meet with ASEAN Secretary-General Dato Lim Jock Hoi, before taking part in a wreath-laying ceremony and a business dinner.
He will fly to Makassar on Tuesday for the final day of his trip to Indonesia.
© AAP 2022