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Indonesian president Joko Widodo with Australian prime minister Malcolm Turnbull in Sydney on Sunday. In January Indonesia suspended military cooperation with Australia for technical reasons believed to relate to offensive materials displayed at an Australian military base. Indonesia later clarified the suspension only related to joint language training due to a small incident that has offended our dignity as a nation. On Sunday Turnbull said he and Widodo agreed to the full restoration of defence cooperation, training exchanges, and activities. Turnbull said Australia and Indonesia were committed to countering the threat of foreign fighters returning from Syria and Iraq, including with a $40m commitment from Australia for the second phase of the countries joint justice program. Turnbull said both countries encouraged parties in the South China Sea dispute to resolve it in line with international law, presenting a joint face against Chinas island-building program, which the International Court of Justice said could not ground territorial claims . He said the economic partnership agreement being negotiated would help Australian and Indonesian industries, including by boosting jobs. Turnbull said Indonesia had agreed to lower sugar tariffs to 5% in line with other Association of Southeast Asian Nations, and for longer-term export permits for a wider range of cattle in terms of weight and age to be exported to Indonesia. In return Australia would abolish tariffs on pesticides and herbicides to put them on an even footing with other trading partners, he said. Widodo said that he had told Turnbull the key issue in concluding the trade agreement was removal of trade barriers for Indonesian products including paper and palm oil. In other announcements, Turnbull said Australia would open a new consulate general in Indonesias second largest city, Surabaya.