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resident Susilo Bambang Yu-dhoyono and Australian Prime Minister Julia Gillard have agreed that the relations between the two countries remain strong despite the establishment of a US military base in Darwin, an Australian city closest to Indonesia.

In their first of what will become annual talks between the leaders of the two countries in Nusa Dua, Bali, on Sunday, Yudhoyono said he was assured by Gillard’s explanation that Australia and the US meant no harm in their plan to build military base in Darwin, only 820 kilometers from Indonesian territory.

US President Barack Obama and Gillard last week unveiled plans to deepen the US military’s presence in the Asia-Pacific region by establishing a US base equipped with 2,500 US marines in Darwin, Australia’s Northern Territory.

Many have said that the growing US military presence in the region is aimed at countering the rising influence of China.

“There are no problems with our relations with Australia. Of course, there are some issues that we need to discuss with good intentions for finding new opportunities for both sides,” he told reporters.

On the sidelines of the East Asia Summit (EAS) on Saturday, Obama also reassured Yudhoyono of the United State’s positive intentions. Gillard said on Sunday that the Indonesian President understands Australia’s growing military ties with the US are not a threat.

Both Obama and Gillard also reiterated both countries’ respect Indonesia’s integrity, including support for handing problems in Papua.

“President Yudhoyono certainly understands that this is a step forward in our defense cooperation with the United States. We are a long-term ally of the US. This step forward in our defense cooperation is not aimed at any nation in our region,” she was quoted as saying by ABC Online.

Yudhoyono stressed that Australia and the US are part of the EAS, which has issued a declaration that has forbidden the use of violence within the region.

“We already have norms within the region,” he said.

International law expert Hikmahanto Juwana, however, questioned if both Australia and the US would keep their promise of not using military might against any country whenever there was a change in the government of both countries.

“We know that if Republicans win the US presidency, the US will be very aggressive militarily, while if Conservative wins in Australia, the country will be very different as the party identifies with the West rather than Asia,” he said.

Gillard brought to Saturday’s bilateral meeting with Yudhoyono an aid package that included a new A$112 million rural development program, three fast interception vessels to increase Indonesian police effectiveness against people-smugglers and four Hercules C-130 transport planes (in need of repairs) for humanitarian and disaster relief, the Australian reported.

Australia will also provide A$1 million toward a secretariat in Jakarta to help coordinate the region’s response to natural disasters.

The two leaders also discussed a range of topics, including the cases of several Australians caught up in Indonesia’s justice system, with Gillard thanking the President for the care shown to the 14-year-old Australian boy facing drug charges in Bali.

She told him the Australian government supports Schapelle Corby’s appeal for clemency and the expected bids for clemency from Bali Nine members Andrew Chan and Myuran Sukumaran.

The leaders agreed to strengthen collaboration to help verify the age of Indonesian crew members charged under Australia’s people-smuggling laws.