Indonesia and Aust upgrade defence ties

Australia and Indonesia have upgraded defence ties.

Defence Minister Marise Payne and her Indonesian counterpart Ryamizard Ryacudu signed the agreement on the sidelines of a meeting in Perth with South East Asian ministers.

Senator Payne said strengthening defence cooperation would help both countries counter mutual security threats, including maritime and terrorism.

She will continue discussions with defence ministers from Singapore, Philippines, Malaysia, Brunei, Thailand and Indonesian on Friday.

With the so-called Islamic State caliphate mostly crushed in Iraq and Syria, the countries are making sure they're ready to keep returned foreign fighters at bay.