SYDNEY - Australia and Indonesia will regularly consult on matters of security under a new bilateral defense treaty announced by the nations' respective leaders on Wednesday.

Australian Prime Minister (PM) Anthony Albanese on Wednesday hosted Indonesian President Prabowo Subianto to conclude negotiations on the bilateral Treaty on Common Security.

Speaking at a joint press conference in Sydney, Albanese said that the treaty will commit Australia and Indonesia to consult at a leader and ministerial level on matters of security on a regular basis and consider what measures could be taken to individually or jointly respond to threats, the Australian Broadcasting Corporation reported.

ALSO READ: Vietnam, Australia pledge to enhance FTA cooperation

Prabowo said that the new security deal reaffirms and enhances the relationship between the two countries.

In a statement released later on Wednesday, Australian Foreign Affairs Minister Penny Wong said the new treaty is modeled closely on a 1995 agreement between the two countries on maintaining security and that it will be a significant extension of existing security and defense cooperation between Australia and Indonesia.

The leaders look forward to signing the treaty in the new year, according to the statement.