Speaking at a gathering of business leaders in Jakarta, Prime Minister Scott Morrison said work would continue on a free trade deal between the two countries, eight years after negotiations first began.
On Friday, Indonesia and Australia agreed to finalise the deal by November, which will remove tariffs and allow greater access to the Indonesian market for Australian farmers and Australian universities.
Mr Morrison said the free trade deal elevates the bilateral relationship.
“The new partnership gives Australia and Indonesia the framework to build even closer ties, to boost prosperity for our people, strengthen the connections between our communities, and increase security not just for us, but right across the Indo-Pacific,” he said.
He called his meeting with President Joko Widodo on Friday very productive.
“We are pragmatic and committed to action. We come to get things done. We also come with respect to listen and to learn.”
He said he was charmed by President Widodo, sharing photos of their children during their discussions over high tea at the Grand Garden near Bogor Presidential Palace near Jakarta.
Under the free trade deal, Australian farmers will be able to export into Indonesia 500,000 tonnes of grains, such as wheat, tariff-free.
Australian-owned vocational training providers will also be allowed to partner with Indonesian businesses to provide training programs.
Speaking to reporters after the event, Mr Morrison said Australians would be the beneficiaries of the free trade deal.
“When you're getting rid of tariffs, you're basically taking taxes off things that are being bought in Australia. And our key imports that come out of Indonesia - particularly petroleum and furniture and things like that - wood, even footwear - these are things that will no longer have these tariffs on them, and many more.
“It also means that, between our two countries, there will be a lot more exchange, particularly in the area of education and training. Australians are the best trainers in the world.”

Australian Prime Minister Scott Morrison and Indonesian President Joko Widodo sit down for high tea at the Grand Garden near Bogor Presidential Palace. Source: AAP
He said visa processes would be streamlined for Indonesians seeking to come to Australia.
“There are matters that have been brought forward to me which further enhances the technology that is available to us to make sure that our visa system ticks all the right boxes," he said.
"Which means for visitors or business people or others that you can have both now: you can have the comprehensive visa program, and you can have seamless travel.”