Indonesia is sending its ambassador back to Canberra as part of its efforts to normalise relations between the two countries.

A presidential office spokesman says Najib Riphat Kesoema will return to Australia within the month, a decision made by president Susilo Bambang Yudhoyono after speaking with Prime Minister Tony Abbott by phone earlier in the week.

It was the first contact between the two leaders since revelations last year that Australia attempted to listen in to the president's phone calls, and that of his inner circle.

Mr Kesoema was abruptly called back last November as part of Jakarta's response.

Diplomatic tension has also flared over Australia's asylum seeker policy.

Spokesman Teuku Faizasyah says progress on a code of conduct has led to the decision.

Mr Faizasyah says the move will also help with the organisation of a possible visit by Mr Abbott to Indonesia in June.