Australia and Indonesia have pushed for a "roadmap" for Indian Ocean countries amid a backdrop of sluggish economic growth, terrorism and mass migration.
In the second day of her trip to Indonesia, Foreign Minister Julie Bishop told the Indian Ocean Rim Association (IORA) ministerial meeting that Australia was "increasingly focused" on the region as the strategic and economic system in which its future prosperity depends.
"We cannot underestimate the costly impact of terrorism and extremism in all its forms to regional and international peace and security... I hope to see discussions on this and other important issues," she said In Bali on Thursday.
She welcomed Indonesia's push for a IORA Concord to be implemented next year, saying it could provide a "roadmap" for the region which needed to build "stronger and better corridors for cooperation".
Opening the conference, Indonesian Foreign Minister Retno Marsudi said the region was facing the challenges of sluggish economic growth, terrorism, mass migration and international and interstate conflicts.
IORA was strategically placed to tackle these challenges, she added.
Ms Marsudi, along with Indonesian Defence Minister Ryamizard Ryacudu, was scheduled to meet with Ms Bishop and Defence Minister Marise Payne on Friday, however the death of her father meant she left the IORA conference early.
In a 2013 report, the Department of Foreign Affairs and Trade (DFAT) noted "the Indian Ocean, in its totality, carries around one third of the bulk cargo traffic and around two thirds of the world's maritime oil shipment".
