Prime Minister Tony Abbott has given President Susilo Bambang Yudhoyono fresh assurances that Australia will not violate Indonesia's sovereignty amid ongoing tension over the coalition's plans to turn asylum seeker boats around.
While both leaders on Monday spoke of a united and cooperative approach to combating people smuggling, it was clear from comments following their talks in Jakarta that Mr Abbott's controversial boat tow-back plan remains a sore point in the relationship.
Speaking after what was his first bilateral meeting with Dr Yudhoyono since being elected prime minister, Mr Abbott on Monday evening said his discussions with the Indonesian president on people smuggling had been "very cordial, constructive and collegial".
"We are resolved together united to tackle this problem and to beat it - on land and at sea, and at the borders of our countries," Mr Abbott said.
"We are determined to end this scourge which is not just an affront to our two countries, but which has so often become a humanitarian disaster in our seas between our two countries."
However, Dr Yudhoyono stressed that it was Indonesia's view that the issue of asylum seekers would be best dealt with under the regional dialogue known as the Bali Process.
"They burden Indonesia," he said of asylum seekers.
"They give us social burden, they give us economic burden. And when some of them decide to continue their journey to Australia, they then bring more burden to Indonesia.
"It would be much better if cooperation at the bilateral level will flow even further based on the Bali Process so that we may both together overcome this challenge".
The meeting between the two leaders comes just days after the tragic sinking of an asylum seeker boat off the coast of Indonesia, and weeks of criticism out of Jakarta over Mr Abbott's plan to turn boats back.
Neither Mr Abbott or Dr Yudhoyono spoke in any detail about what was discussed in their meeting in terms of asylum seeker policy.
But Indonesia's Foreign Minister Marty Natalegawa later confirmed that Mr Abbott had given a fresh guarantee that Indonesia's sovereignty would be respected, in what was clearly a reference to the coalition's controversial tow-back policy.
"The Australian side constantly repeated their assurances that they would not take any action that contravenes Indonesian sovereignty," Dr Natalegawa told reporters.
"We are assured by that expression of commitment on the part of Australia."
The comments come after Dr Natalegawa last week warned the tow-back plan could violate his country's sovereignty and damage relations.
"We have had just now a very clear recognition on the part of the Australian government, the prime minister, that the issue of people smuggling is an issue that is a shared responsibility, a shared challenge for the two of us," he said.
"Therefore the ways to overcome it must be coordinated and cooperative ... (and) the ways and means will be respectful of Indonesian sovereignty."
Mr Abbott, who was accompanied by Foreign Minister Julie Bishop and Finance Minister Andrew Robb, met with Dr Yudhoyono for more than 30 minutes, also discussing trade and investment.
A group of Australian business leaders has also travelled to Jakarta as part of Mr Abbott's delegation.
Mr Abbott began his trip by laying a wreath at Kalibata Heroes Cemetery in south Jakarta, where many who died fighting in the Indonesian war of independence against colonialists are buried.
He will address a business breakfast on Tuesday morning before returning to Australia.
Later, during a speech at the Presidential Palace, Mr Abbott announced an Australian Centre for Indonesian Studies would be established to "strengthen and deepen" business, cultural, educational, research and community links.
The new centre is to be based at Monash University, with the Australian National University and the University of Melbourne also involved.
