Australia's Foreign Minister Alexander Downer says the current diplomatic dispute with Indonesia is a crisis.
The comments come after talks with the Indonesian Foreign Minister, in an effort to restore the two nations' damaged relationship.
It follows a decision last month to grant protection visas to 42 Papuan asylum seekers, with Indonesia angry it wasn't consulted over the move.
Mr Downer says although he can't simply overturn asylum applications, progress between the countries are being made slowly, but surely.
'We are talking through the full issue of this crisis and looking to see what we can do to take things forward.'
'I think it's fair to say that I have a positive approach to the overall relationship with Indonesia.'