Indonesia's chief security minister Susilo Bambang Yudhoyono has called for a new defence pact with Australia, saying it was needed to promote the fight against terrorism.

Yudhoyono made the statement late last week in Melbourne before joining Australian Prime Minister John Howard on a flight to Bali for Sunday's commemorations of the Bali bombing, the Australian Financial Review said.

The former general, widely seen as a likely future president, said terrorist attacks had made a new pact necessary.

"In the age of 9/11 and Bali and Jakarta Marriott, security can best be promoted through co-operation," Yudhoyono was quoted saying. "This is leading us to change in our security culture. We can ensure our security only by sharing our intelligence with each other."

The previous Agreement on Maintaining Security was negotiated between former prime minister Paul Keating and former Indonesian president Suharto in 1995. It focussed on consultation, training and technical exchange, but did not impose a mutual defence obligation.

Indonesia cancelled the agreement in 1999 during the tensions over independence in East Timor, when Australia led an international intervention force to the territory.

Australia announced earlier this year that it planned to re-start joint training with Indonesia's special forces, known as Kopassus. Human rights activists oppose the plan, as Kopassus members are widely thought to have coordinated much of the East Timor bloodshed.

On Sunday, Foreign Minister Alexander Downer said that new laws to be presented to parliament this week would mean specific approval from the foreign minister would be required for any training with Kopassus.

Defence Minister Robert Hill has argued that cooperation with Kopassus is needed as it provides Indonesia's main anti-terrorism capability. However, Indonesia is reportedly unhappy about Australia's desire for a veto over individual Kopassus members if they are suspected of involvement in human rights abuses.