Prime Minister Tony Abbott expects Australia's relationship with Indonesia to be "strong and warm" under its new president, Joko Widodo.
Mr Abbott phoned to congratulate Mr Joko on Wednesday morning after Jakarta's popular governor was declared Indonesia's next president.
"We had a very genial conversation," Mr Abbott told reporters in Canberra.
The hard-fought July 9 poll was only the third direct presidential election since Indonesia's transition to democracy.
Mr Abbott hailed the event as a significant milestone for Indonesia, congratulating the nation on an "extraordinary" feat.
The prime minister welcomed the opportunity to work with his new counterpart, emphasising the importance of bilateral relations.
Ties have been slow to repair since revelations in 2013 that Australia spied on Indonesian President Susilo Bambang Yudhoyono, his wife and inner circle.
A furious Dr Yudhoyono recalled Indonesia's ambassador and suspended co-operation on high-level bilateral issues, including people smuggling, defence and intelligence sharing.
Mr Abbott is confident relations are on the mend.
"My expectation is that Australia will have a very strong and warm relationship with Indonesia, as we have had in the past," he said.
Labor had warned it could be difficult for Australia to normalise ties with its neighbour if the opportunity was not seized with Dr Yudhoyono, who will stand down in October after ten years at the helm.
But it's hoping a new leader will aid that process.
"We hope the election of new president will provide a circuit breaker for a better relationship with Indonesia," Opposition Leader Bill Shorten said.
Mr Joko said the first leaders to congratulate him were Dr Yudhoyono and Vice-President Boediono.
Then the prime ministers of Singapore and Australia called, he told reporters in Jakarta.
"President Obama called at 11am," Mr Joko said.
"We want to strengthen the relationship between Indonesia-America, Indonesia-Singapore and Indonesia-Australia."
Meanwhile, the loser of the presidential ballot, Prabowo Subianto, has vowed to challenge the result in the country's constitutional court.
His team on Wednesday reeled back his withdrawal from the race, saying he had done so only from the counting process and remains a candidate.
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