As the battle for Islamic State's last-remaining stronghold in Iraq heats up, Australia and Indonesia are jointly grappling with the potential consequences of foreign fighters returning from Mosul.
Foreign Minister Julie Bishop will discuss counter-terrorism co-operation with her Indonesian counterpart in Bali next week.
"It's exceedingly important at present because with the Mosul offensive in Iraq it is likely that foreign terrorist fighters from our region will seek to escape Iraq and come back to Indonesia and Australia," she told reporters in Canberra on Wednesday.
Australia is part of a broader coalition supporting Iraqi security forces to reclaim their second largest city which fell to IS in 2014.
According to Australia's domestic spy agency there 190 people here actively supporting groups such as IS through recruiting and fundraising efforts.
An estimated 110 Australians are still fighting with terrorist groups in Syria and Iraq.
Indonesian authorities estimate more than 500 nationals have joined IS in the Middle East.
Ms Bishop will also be keen to help boost momentum for free-trade deal negotiations during talks with Retno Marsudi, saying economic ties would be a key focus.
Negotiations on a trade pact are expected to be finalised by mid or late 2017.
Indonesia is Australia's 12th largest trading partner but business groups say there is significant scope for improvement.
The pair will discuss the fate of 13,800 asylum seekers and refugees in limbo in Indonesia.
But Ms Bishop has closed the door on the prospect of Canberra lifting a ban on resettling anyone in Indonesia registered with the United Nations refugee agency.
The ban applies to anyone registered with the UNHCR in Jakarta from July 1, 2014.
Ms Bishop will attend the Indian Ocean Rim Association ministerial meeting in Bali later in the week.
Trade, people smuggling, human trafficking, transnational crime, piracy and illegal fishing are among issues on the agenda.
Defence Minister Marise Payne will also hold talks with her Indonesian counterpart at a 2+2 event.
Indonesian President President Joko Widodo is due to visit to Australia in November.
