Foreign Minister Julie Bishop has hosed down prospects of joint patrols with Indonesia in the South China Sea during her visit to Jakarta, while talking up trade and counter-terrorism co-operation in the region.
She also flagged a visit to Papua later in the year.
Ms Bishop joined her Indonesian counterpart Retno Marsudi at the Indian Ocean Rim Association (IORA) on Monday, with both countries hoping to create fresh avenues for boosting trade and combating violent extremism in the region.
Indonesian President Joko Widodo spruiked the waters as the "future" - with the region home to 2.7 billion people and a transport route for the majority of the world's oil and half the world's container ships.
Maintaining stability, security and peace in the region was paramount to achieving economic success, Indonesia has said.
To this end Ms Bishop said the 21 member states had signed the "first ever declaration" on combating terrorism in the region, bringing together countries as diverse as Somalia, Kenya, Yemen, Malaysia and Singapore.
Through a series of bilateral meetings with Indonesian ministers outside the summit on Monday afternoon, Ms Bishop was keen to stress the strong relationship between the two countries.
After one such meet, Maritime Affairs Minister Luhut Pandjaitan said they were discussing Ms Bishop visiting Papua later this year.
This comes a month after Australia's chief of army Angus Campbell travelled to Jakarta to smooth over relations after documents found at a Perth special forces base reportedly poked fun at Indonesia's founding principles - Pancasila - in addition to an assignment on West Papuan independence.
Mr Pandjaitan said they had discussed the "openness of Papua", adding "we (would) love for some more countries to visit Papua to see what's really going on."
However, Ms Bishop has hosed down comments made by President Widodo about joint patrols in the South China Sea, saying it was her "understanding" he was talking about "co-ordinating our efforts in terms of freedom of navigation and freedom of overflight".
Mr Pandjaitan said the two countries were focusing on strengthening trade, tourism and other activities in the waters.
Ms Bishop is set to leave Jakarta on Monday night, with Prime Minister Malcolm Turnbull due to arrive early on Tuesday to meet other heads of state at the IORA summit.
