Australia and Indonesia to sign code of conduct agreement

AUSTRALIA and Indonesia are on the brink of signing a code of conduct agreement that will see a full resumption of a spirit of co-operation between the two countries.

Relations have been strained since November last year after revelations that Canberra had tapped the phones of President Susilo Bambang Yudhoyono, his wife, and other top-ranking officials.

An angry Indonesia withdrew its ambassador from Australia and broke off military assistance including its help in the operations to stop people smugglers.

Foreign Minister Julie Bishop said on Tuesday that defence, intelligence and border security co-operation will resume under the terms of a new deal after earlier confirming the code of conduct would cover espionage.

Ms Bishop will travel to Jakarta to sign the agreement with her opposite number Marty Natalegawa with outgoing Indonesian President Yudhoyono and Prime Minister Tony Abbott as witnesses.

The Department of Foreign Affairs is yet to confirm a date of departure.