Australia and Indonesia are set to sign a new pact that will heal a rift that stemmed from a spying issue last year and allow the two countries to restore intelligence and military ties.

Under the terms of the deal, Australia's Prime Minister Tony Abbott and Foreign Minister Julie Bishop will fly to Indonesia to sign the "Joint Understanding of a Code of Conduct," Reuters detailed.

Like Us on Facebook

The document will also be signed by Indonesia's President Susilo Bambang Yudhoyono and Foreign Minister Marty Natalegawa, Australian media detailed.

On Tuesday, Bishop told the Australian Broadcasting Corp (ABC) that they agreed on the joint understanding and are presently setting a schedule to sign the document. She gave no other details regarding the deal.

The document would allow both countries to resume their cooperation in military activities, according to Teuku Faizasyah, the presidential spokesman for Indonesia's international affairs.

The wavering relations between the two nations hit a record low in November last year when reports surfaced about Australia spying on Yudhoyono, his wife and other prominent officials of the Indonesian government.

Faizasyah explained that the new code of conduct is the key to rebuilding the broken trust between Australia and Indonesia after the spying incident tore them apart.

Ties between the neighbors were tested when an issue erupted about asylum seekers attempting to reach Australia via Indonesia. Abbott then implemented a new rule ordering vessels with asylum seekers to be towed back to Indonesia.

Jakarta condemned Abbott's policy on asylum seekers and suspended police and army cooperation with Australia over the issue. In December, the Indonesian president proposed a plan for rebuilding its ties with Australia. The proposal included a code of conduct on intelligence issues.

According to ABC, Yudhoyono already studied the new code. The said document contains a pledge by Australia to stop using its intelligence agencies in a way that will be detrimental to Indonesia.

TagsAustralia, Indonesia, Reuters, Tony Abbott, Julie Bishop, Susilo Bambang Yudhoyono, Marty Natalegawa, Australian Broadcasting Corp, Joint Understanding of a Code of Conduct, Jakarta, Teuku Faizasyah