The Australian and Indonesian governments will sign a joint code of conduct, after months of negotiations, which will include a promise by Australia not to use its spy agencies to harm its neighbour.



Australia’s foreign minister, Julie Bishop, will travel to Indonesia to sign the agreement with her counterpart, Marty Natalegawa, in the presence of the prime minister, Tony Abbott, and Indonesia’s departing president, Susilo Bambang Yudhoyono, according to multiple reports.

“We have reached agreement on the joint understanding and we are currently arranging a time to sign it,” Bishop told the ABC.

It’s understood Abbott was involved in the drafting of the agreement, and Yudhoyono reviewed it, according to the Australian.

Relations have been tense between the two countries for months, after it was revealed by Guardian Australia and the ABC that Australian spy agency Defence Signals Directorate – now called the Australian Signals Directorate – tapped the phone of the Indonesian president, his wife, and several key advisers.

In response Indonesia broke off military cooperation, including with Australia’s operations against people-smuggling, and withdrew its ambassador, but Nadjib Riphat Kesoema quietly returned earlier this year.

The code of conduct to be signed will settle the dispute between the two countries and lead to the resumption of cooperation, the Australian reported on Tuesday.

In March Bishop confirmed that the code – which Australia originally wanted to be a vaguer “joint understanding” – would cover the spying controversy.

“I made it quite clear that Australia would not use its resources – our intelligence resources – to the detriment of our friends and neighbours and that includes Indonesia,” she said. “That will be part of the agreement, yes.”

A spokesman for the Department of Foreign Affairs and Trade (Dfat) said the government “looks forward to signing the instrument at a mutually convenient time in the near future”.

“The joint understanding contains a commitment that Australia and Indonesia will not use their intelligence resources to harm each other’s interests.



“The joint understanding will enhance intelligence cooperation between Australia and Indonesia as we work together to respond to security challenges facing the region, including the threat of home grown extremists returning from conflicts in the Middle East.”



Dfat did not confirm whether the the promise not to use spy agencies to harm Indonesia was volunteered by Australia or requested by Indonesia.

