Paul Daley – Australia's relationship with Indonesia will be further strained by new revelations that the Indonesian Army has bolstered its forces in Aceh, contrary to its claim of having scaled-down its military presence in the strife-torn province.

The revelations coincide with a planned meeting in the next fortnight between the Defence Minister, Mr John Moore, and his Indonesian counterpart, General Wiranto, where the resumption of joint Australian-Indonesian military special forces exercises is likely to be discussed.

Sources told The Age Australian military intelligence had confirmed that since the public withdrawal of troops from Aceh at the end of August, the Indonesian military – including members of the special forces, Kopassus – had gradually bolstered its presence in Aceh.

They said there have since been reliable reports of murders, rapes and beatings in the province. "The view is that Aceh is exactly the same as East Timor – there was a staged withdrawal of special forces and then they were sent in again through the back door," a diplomat said.

Sources said Australia's anticipation of "a steady flow of horror stories" about the Indonesian military's actions in Aceh, East Timor and Irian Jaya made a "mockery" of the Federal Government's public explanation that joint military exercises were postponed by mutual agreement because of Indonesia's economic crisis.

"You can describe these decisions in the most diplomatic of terms," a source said, "but Australia knew there were going to be very difficult times ahead in relation to this issue, that we should cease the tie and that it will be impossible for the joint exercises to go ahead again."

Last month, leaked Indonesian military documents showed Indonesia had not, as stated, lowered the number of troops in East Timor. Sources said further "embarrassment" to the Indonesian Armed Forces is expected to stem from the imminent findings of the Indonesian Commission on Human Rights, which is investigating reports of mass graves in Aceh.

On 7 August, General Wiranto announced the withdrawal of troops from Aceh and later that month about 1000 Army personnel were reported to have left the province. But sources said riots and looting, possibly sparked by Indonesian agents provocateur, accompanied the withdrawal and justified, in the eyes of the Indonesian military, the decision to reinforce forces within days.

"At the very best it was a rotation. At worst, (Indonesian Army) numbers have been bolstered. We believe the worst," a source said. Yesterday sources confirmed signals intelligence and ground reports had left Australia in "little doubt" about up-to-date troop movements in Aceh, East Timor and Irian Jaya.

Mr Moore's office did not respond to inquiries from this newspaper yesterday. But last week, the minister told The Age he anticipated the resumption of joint military exercises would be discussed during his meeting with General Wiranto. "I have no doubt that there will be further (joint Australian-Indonesian military) exercises," Mr Moore said."It's just a question of time and the mutual interest of both sides."