Australia will open Indonesia's first foreign university campus and consider watering down its travel warnings in a show of unity between the
But Prime Minister Scott Morrison says challenges around terrorism, foreign fighters and influence are still front of mind.
for an official visit, with a new trade deal to be signed on Monday.
The agreement, passed by the Indonesian parliament last week, is aimed at boosting multi-billion dollar ties.
Mr Widodo addresses the Australian Parliament in the House of Representatives. Source: Pool AAP Image
In a joint press conference, Mr Morrison announced Monash University will set-up Indonesia's first foreign campus - a move he described as "a very good example of how this is a two-way street".
The deal was made possible after the Indonesian government finalised regulations allowing foreign universities as part of a push to improve the country's higher education performance.
Mr Morrison also detailed plans to ease travel between the countries.
"We are pleased that our home affairs minister here in Australia will be engaging with his Indonesian counterpart to proceed to look at how we can simplify and streamline the issues of entry into Australia," he said.
"We also agreed to reconsider and look at the issues of travel advice into Indonesia, particularly for those areas most frequented by Australian visitors.
"We have also discussed today the many challenges around counterterrorism, foreign terror fighters and counter foreign influence."
The PM and Mr Widodo shake hands before his address to the House of Representatives. Source: AAP
Australia's travel advisory level for Indonesia is at level two: "exercise a high degree of caution".
Mr Widodo said the agreement was a significant step forward in the relationship between the countries and within the broader Indo-Pacific region.
"Indonesia hopes Australia can become an important partner in infrastructure investment, as well as education," he told reporters through an interpreter.
Mr Widodo addressed members and senators in federal parliament, an honour granted to his predecessor Susilo Bambang Yudhoyono in 2010.
Former Australian Prime Minister Malcolm Turnbull called the Indonesian leader "a leader for our times", on Monday, following the president's speech to parliament.
The president was given a ceremonial welcome on Sunday at Government House - the official residence of the Governor-General David Hurley - where he was also greeted by foreign secretary Marise Payne.
Trade Minister Simon Birmingham said the agreement with one of the world's fastest-growing economies would be a major boost for Australian farmers through lower tariffs and improved access.
Indonesian goods will be subject to zero tariffs when entering Australia, while tariffs on 94 per cent of Australian goods imported to Indonesia will be eliminated gradually.
Indonesia and Australia already enjoy bilateral trade worth $17.8 billion.
Australian Governor-General David Hurley (right) and Indonesian President Joko Widodo (left). Source: AAP
The deal is considered important as Australia diversifies its economy and moves away from a heavy reliance on China.
HOW DOES TRADE DEAL WITH INDONESIA HELP AUSTRALIA?
* Indonesia-Australia Comprehensive Economic Partnership Agreement comes with a 100-day action plan, to deliver benefits for farmers and businesses.
* 99 per cent of Australian goods exports by value will enter Indonesia duty free, or with significantly improved preferential arrangements, upon entry into force.
* Better and more certain access for Australian business, including agriculture (cattle, beef, sheep meat, feed grains and citrus), manufacturing (steel, copper, plastics), vocational and higher education services; services and investment (tourism, mining, healthcare and aged care, telecommunications, energy, infrastructure, professional services).
* Security ties are improved with shared commitments across defence, counter-terrorism and people-smuggling, maritime.
* Reaffirmed commitment to the Lombok Treaty, as the bedrock both countries defence and security relationship.
* Closer work on the environment including oceans and waste/plastic policy
* Over one million Australians visit Indonesia each year (number two destination for all Australians travelling overseas)
* Work to begin on improving visa system to streamline entry into Australia for Indonesians
* Re-evaluation of travel advisories where they are limiting the number of Australians visiting certain parts of Indonesia
* New energy dialogue to be set up, sharing clean energy technology and services
* Australian pension and superannuation funds to get greater access to invest in Indonesia
with AAP...
