"Australia is proud to stand alongside a united, democratic and increasingly prosperous Indonesia. I look forward to working with President Joko Widodo in the months and years ahead to build an even closer bilateral relationship," Turnbull said on social media networks.
Military ties between the nations broke off last month after an Indonesian serviceman informed the top brass about seeing what he said were offensive posters mocking Indonesian beliefs at Australia’s airbase in Perth.
Announcing reconciliation at a joint press briefing, Prime Minister Turnbull said it was "critical" that the two neighbors have a strong partnership in order to tackle emerging security challenges. The countries also agreed to mutually reduce trade barriers and lower tariffs for certain exports.