Indonesia has suspended all military cooperation with Australia, allegedly over insulting training material on display at an Australian Special Forces base in Perth.

Key points: Indonesian officials have not confirmed reason for suspension

Indonesian officials have not confirmed reason for suspension An instructor felt insulted by material on display at a Perth training facility

An instructor felt insulted by material on display at a Perth training facility Defence wrote to Indonesia about the material in November, saying it was an isolated incident

Defence Minister Marise Payne said Australia had been informed by Indonesia of the suspension and that "some interaction" had been postponed until the matter is resolved.

Indonesian military spokesman Major General Wuryanto would not confirm the reason for the suspension, saying it was for technical matters and that there were "ups and downs in every cooperation between two national forces".

It comes after an instructor with the Indonesian Special Forces group Kopassus was insulted by material on display at the Special Air Service's Perth base, which is used by Kopassus for training.

The ABC has confirmed an instructor felt the material was demeaning to Indonesia's five founding principles of Pancasila — belief in one god; a just and civilised humanity; the unity of Indonesia; democracy guided by inner wisdom; and social justice for all Indonesians.

ADF chief Air Chief Marshal Mark Binskin wrote to his Indonesian counterpart, General Gatot Nurmantyo, about the offending material on November 23 last year.

A diplomatic source familiar with the correspondence said the Defence chief's letter reassured the Indonesian military that the offensive material displayed in Perth did not reflect the view of the ADF, and was an isolated incident.

Air Chief Marshal Mark Binskin wrote to General Gatot Nurmantyo in November. ( Supplied: Department of Defence )

Australia's Chief of Army Lieutenant General Angus Campbell also wrote to his Indonesian counterpart on November 24 to reassure him that Australia did not endorse the material.

In a statement, Senator Payne said the Army had "looked into the serious concerns that were raised and the investigation into the incident is being finalised".

"Australia is committed to building a strong Defence relationship with Indonesia, including through cooperation in training," Senator Payne said.

"We will work with Indonesia to restore full cooperation as soon as possible."

Indonesian newspaper Kompas reported that the suspension followed another earlier incident, when a Kopassus member discovered lessons being taught at the Special Forces base were demeaning to the Indonesian military.

Future of Navy exercises unclear

The instructor who was offended was with Indonesian Special Forces group Kopassus (pictured) ( Reuters: Beawiharta Beawiharta )

It is unclear how long the suspension is for or whether the suspension will affect future joint training exercises between Indonesia and Australia.

The Indonesian and Australian navies are due to participate in multinational training exercises in February.

Senator Payne said "some interaction between the two Defence organisations has been postponed until the matter is resolved".

Indonesia and Australia are due to participate in multinational navy training exercises in February. ( ABC News: Nadia Daly )

A spokesman for the Indonesian Navy said he had just found out about the military chief's "statement about the suspension of cooperation with Australia".

"Whether or not we will continue with the joint exercise, I will have to get back to you on that," First Admiral Jonias Mozes Sipasulta said.

"I need to build more details first. Usually we don't suspend cooperation on education and training but now I heard we've suspended all cooperation."

Until this incident the military relationship between the two nations had been improving.

Military cooperation between the two nations was last suspended in 2013 over a phone-tapping scandal.

Documents obtained by the ABC and Guardian Australia revealed that in 2009, Australian intelligence attempted to tap the mobile phone of then-president Susilo Bambang Yudhoyono.