Dutton holds anti-terror talks in Jakarta

Co-operation with Indonesia and other countries in the region will be crucial to tackling terrorists returning from the Middle East, Home Affairs Minister Peter Dutton says.

Mr Dutton met on Monday with Indonesian President Joko Widodo and security minister Wiranto in Jakarta to discuss issues including people-smuggling and the foreign fighter threat.

"Many of these battled-hardened terrorists will no doubt seek to return to their home countries and we must be ready to deal with them," Mr Dutton said in a statement after the meeting.

"Regional co-operation will be vital to the possible threats they pose."

The minister said Australia was also working with Indonesia in the area of outlaw motorcycle gangs, child exploitation and drug importation.

"Once you've got human beings and greed and profit involved, people will always have a motivation - whether it's in human trafficking, whether it's in the distribution or manufacturing of drugs - and Australia is a market that's prepared to pay a high price for these drugs," Mr Dutton said.

"I think it just reinforces that we've got to continue to work very closely, not only with the Indonesians, but with friends otherwise across the region."