Indonesian minister positive about trade

Indonesia's finance minister is confident there are opportunities for trade with Australia to flourish, even as political ties between the neighbours remain tense.

Dr Muhamad Chatib Basri said partnerships between Australian and Indonesian investors in the cattle industry and infrastructure projects were examples of "politically acceptable" ways to grow trade.

He has arrived in Australia for the G20 finance ministers meeting, as fresh allegations of spying further hamper efforts to repair the fragile relationship with Indonesia.

It's been three months since Jakarta recalled its ambassador and suspended military co-operation with Australia after revelations Canberra spied on Indonesian President Susilo Bambang Yudhoyono and members of his inner circle.

Indonesia is reluctant to attach a time frame to the restoration of ties, and Australia is waiting to see how it responds to a draft code of conduct to help steer the relationship.

But Dr Basri, a senior minister in President Yudhoyono's government, said there were ways to advance economic opportunities if politics were kept to one side.

"We have to come up with a policy that is politically acceptable," he told a conference at the Australian National University in Canberra on Thursday.

Dr Basri suggested establishing an Australian quarantine station in Surabaya, Indonesia's second-largest city, so exporters wouldn't have to fork out high transportation costs if their goods weren't up to scratch for the Australian market.

He also encouraged joint investments in the Australian cattle industry, an idea he knew was "sensitive" but would benefit both nations as Indonesia pursued its goal of self-sufficiency in beef.

"Let's start with something very simple," Dr Basri said.

"That kind of pragmatic approach will enhance this co-operation."

Trade Minister Andrew Robb said this week that economic ties with Indonesia had not been "in any way affected" by the dispute over spying, and the live-cattle trade had actually grown.

ANU professor of strategic studies Hugh White said one of the big challenges for Australia was to shift its mindset as Indonesia emerged as a strong, wealthy regional power.

"It has been very easy for Australians to assume ... that in the end we could primarily set the terms of the relationship," he said.

"It's not true now. It will be less and less true in the future."

Two-way trade with Indonesia was $14.6 billion in 2012, making it Australia's 12th-largest trading partner.