Indonesia has stressed Australia is not a threat and it is grateful for Australia's communication over its massive military modernisation program over the next 20 years.
In an interview ahead of a visit by Defence Minister Marise Payne to Jakarta on Sunday, Indonesia's Director General for Strategic Defence thanked Australia for sharing the contents of its Defence white paper.
"We are not only a neighbour country but we should be brothers," Major-General Yoedhi Swastanto said. 
"So for us Australia is not a threat. We don't have big issues. There are some small ones [which] is pretty normal to happen between two neighbour countries."
Ms Payne was invited to Jakarta by the Indonesian government at a meeting of defence and foreign ministers in Sydney late last year.
Ms Payne and Indonesian Defence Minister Ryamizard Ryacudu will discuss the two countries' white papers and areas for defence co-operation including counter-terrorism, maritime security, humanitarian assistance and disaster relief, peacekeeping and intelligence.
"Of course, every country has its own interest, but we have similarity," Major-General Yoedhi said.
There are rising tensions in the region over China's placement of military equipment on disputed islands in the South China Sea, through which 60 per cent of Australia's trade passes.
"We have common interest to maintaining security and stability in this region," Major-General Yoedhi said.
"As a member of the global regional community we have to pay attention to this area because it could impact our national interest and national security."
Major-General Yoedhi said the Indonesian Defence white paper - the first since 2008 - focuses on maritime defence in line with President Joko Widodo's vision for Indonesia to be a maritime "fulcrum" between Indian Ocean powers and Pacific powers like China and the United States.
Ms Payne said increasing international engagement was a key element of Australia's Defence white paper.
"As the white paper says, Australia's relationship with Indonesia is vital and a strong and productive bilateral relationship is critical to Australia's national security," she said.
"The government undertook an extensive international consultation during the development of the white paper and we briefed a number of nations, including Indonesia, before its release."
Foreign Affairs Minister Julie Bishop headed to Indonesia on Sunday, for a summit on people smuggling, weeks after Indonesia warned Australia over its boat turnback policy.
Ms Bishop is set to co-chair Wednesday's Sixth Bali Process Ministerial Conference, after last year's meeting was cancelled during a period of tense relations over Australians on death row and Indonesia's objection to Australia's border protection strategy.
Lowy Institute research fellow Aaron Connelly said Indonesia's positive reaction to Australia's Defence white paper was in marked contrast to its suspicion over the announcement five years ago that US marines would be circulating through Darwin.
"That was a big diplomatic issue because Indonesian officials were not well briefed on it in advance," Mr Connelly said.
"This is evidence of how much good work Australian Defence has done in terms of building a relationship with Jakarta."
The nadir of the Australia-Indonesia defence relationship was during the East Timor crisis in 1999 when there were concerns the two countries could descend into open military conflict.
Indonesia remains suspicious of Australia's position on Papuan independence, even though Australia has repeatedly said it recognises Indonesia's sovereignty as outlined by the 2006 Lombok Treaty.
"Of course we asked what their political stance is, especially in Papua," Major-General Yoedhi said.
"You see we have a little bit of problems in Papua."
Major-General Yoedhi also reiterated Indonesia's opposition to Australia's boat push-back policy, saying Indonesia was also a victim, with many refugees from the Middle East and Myanmar.
"I think for the common interest, we should handle [the issue together]. Not only Australia, not only Indonesia, all countries, maybe even the UN, must be involved. So push-back policy is not a good way."
Natalie Sambhi, a research fellow at the Perth USAsia Centre, said she believed the relationship was as healthy as it was before defence ties were scaled back after the spying scandal in 2013.
"My only reservation about the trajectory of the defence relationship is to what extent do [National Armed Forces commander] General Gatot Nurmantyo's relatively conservative views or suspicions come to bear on the relationship."
Last year Commander Gatot said efforts to cede Timor-Leste from Indonesia were a "proxy war" for Australia to secure an oil field in the Timor Gap and Indonesia's drug problem was a proxy war aimed at weakening the country's youths.
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