Jakarta, Indonesia - Australia's newly elected Prime Minister Anthony Albanese met with Indonesian President Prabowo Subianto on Thursday to strengthen the economic and defence ties between his country and his closest key neighbors.

Albanese arrived in the capital Jakarta the day after his new government was sworn in to promote the importance of strong ties with Southeast Asia's largest economy.

"This is a signal of … a sign of the importance we have in the region. We will be in the fastest growing region in human history," Albanys said in an interview with the ABC last week.

He described Subianto as “my good friend” and praised the close relationship between the two countries.

Albanis' center-left Labour Party won its second three-year term in a stressed election on May 3.

According to the Indonesian Presidential Office, he was welcomed at the ceremony at the Meldeka Palace in Jakarta, where he was escorted by dozens of mobile troops and cavalrymen, while about 3,200 schoolchildren waved flags of two countries on the streets.

The office said the negotiations between the two leaders are expected to "conclude several specific agreements that could bring direct benefits to the peoples of both countries."

The two-day visit to Albanes demonstrates the strategic intimacy of these countries. The Indonesian Ministry of Foreign Affairs said in a statement that their discussions will also include food security, energy, trade and other bilateral priorities.

The newly elected Australian Prime Minister usually conducts a bilateral visit to Asia (usually Indonesia) for the first time.

Albanis, who made his first visit to Indonesia after his inauguration in 2022, also visited Makassar, the capital of South Sulawesi, and has close ties to Indigenous Australians.

Albanese's second visit to Jakarta amid global economic turmoil caused by US President Donald Trump's "reciprocal tariffs" trade policy.

Despite decades of deals with bilateral free trade partners, Australia was hit by 10% tariffs on exports to the United States during the election, while Indonesia suffered a 32% loss. The two countries have had better trade deals with Washington over the past month.

Media reports said last month that Russia told Jakarta that it hopes to base long-range fighter jets on Indonesia's easternmost province Papua, the plan was raised as a security issue during the Australian election. Indonesia told Australia that such Russian bases are not allowed.

Given their proximity, Indonesia and Australia have traditionally maintained close ties, including in terms of security and defense, although each country has chosen to respond differently to competition between the United States and China in the region.

Last year, the two neighbors signed a historic defense cooperation agreement that would allow for more complex joint activities and exercises. Canberra calls the agreement the "deepest and most important" defense agreement in bilateral relations.

Albanes will travel to Rome on Friday morning to attend the inauguration of Pope Leo on Sunday.

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Melbourne-based Associated Press writer Rod McGuirk contributed to the report.