Australia and Indonesia will sign a defence treaty that commits the two nations to regularly consult on security matters.

Prime Minister Anthony Albanese and Indonesian President Prabowo Subianto announced the agreement on Wednesday.

The deal is a "major extension" of the strong relationship between the two nations, Mr Albanese said, while at the Royal Australian Navy Base at Garden Island in Sydney.

"This is a watershed moment in the Australia-Indonesia relationship," he said.

Under the pledge, the two countries will consult at a leader and ministerial level on a regular basis, and if either country's security is threatened, consider what measures may be taken individually or jointly to deal with threats.

The prime minister said the treaty builds on the 2006 Lombok Treaty and a defen

See Full Page