Albanese, sworn into office on Tuesday after his center-left Labor party won an increased majority in parliament, said his visit showed the priority Canberra placed on defense and economic ties with Jakarta.

"Indonesia is a critical relationship for Australia, this major neighbor just to our north that will grow to be the fifth largest economy in the world by the end of the next decade," Albanese said in a radio interview in Perth on Wednesday.

Substantial progress had been made on defense and maritime cooperation, he said, referring to a defense cooperation treaty signed last year.

Australian Strategic Policy Institute senior analyst for defense, Euan Graham, said the Australia-Indonesia relationship has "avoided serious crisis for more than a decade, cooperation continues to move forward incrementally and there is greater stability than before".

Yet wide differences remain, he added.

"Jakarta sees China and Russia as vectors of opportunity more than threats and views the US and China primarily through the same lens of great power rivalry. That's largely at odds with Canberra's world view," he said.

Indonesia dismissed reports last month that Russia had requested to base military aircraft in the archipelago's easternmost province of Papua, about 1,200 kilometers north of the Australian city of Darwin, where a US Marine Corps rotational force is based for six months of the year.

Albanese said the two leaders will also discuss global trade.

Australia wants to increase economic ties with Southeast Asia, as it seeks to diversify export markets to reduce reliance on China, and in response to trade uncertainty caused by US President Donald Trump's tariffs.

Indonesia remains a "protected and challenging market" and a competitor to Australia in commodity exports, said Graham.

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