Scholarships to boost Australians' understanding of the Indo-Pacific will be expanded and extended following concerns about a lack of engagement with the region.
The decline in Indonesian language studies was particularly concerning, Foreign Minister Penny Wong said as Indonesia's president-elect arrived in Australia for a short visit.
"There are now fewer people studying Indonesian in Australia than there were under Whitlam 50 years ago - despite our population today having doubled," she told the Centre for Asian-Australian Leadership on Monday.
The number of university students studying an Asian language fell 30 per cent in the decade to 2022.
To address this, long term scholarships for Australian undergraduates under the New Colombo Plan to study across the region will be uncapped, with the aim to double them from 150 to 300.
More than 50,000 undergrads have been supported through the plan in the past decade but the government wants the focus to shift from short courses to extended ones to build connections and knowledge bases.
About 99 per cent of students who receive funding undertake short term placements or travel.
The minimum duration of a short term course will also be extended from two weeks to four under the changes announced by the foreign minister.
"Australia’s interests demand we engage in the region more consistently and more deeply," Senator Wong said.
The government is also working to strengthen ties in the region, while Indonesia's incoming president is in Australia amid a focus on a new defence pact.
Prime Minister Anthony Albanese and Defence Minister Richard Marles welcomed president-elect Prabowo Subianto in Canberra on Monday.
Talks with Mr Prabowo, who is the country's defence minister, are expected to cover the economy, the net-zero transition and security during his two-day visit.
“My government is committed to working with Indonesia to shape the type of region we both seek - one that is peaceful, stable and prosperous, and respectful of sovereignty," Mr Albanese said.
In February, Australia and Indonesia said they would upgrade a bilateral defence pact to ensure it was binding under international law.
The new agreement was expected to allow the two nations to access each other's training ranges and streamline entry and exit processes for joint activities.
But a final pact is yet to be delivered.
"I have had the pleasure of working with and getting to know president-elect Prabowo during his time as defence minister, in which we have been making great strides in our two countries' defence co-operation," Mr Marles said.
“Australia and Indonesia are working closer together than we have before and are expanding the scope and complexity of our exercises together as we address shared regional challenges.”
The trip will be Mr Prabowo's first visit to Australia since he was elected to Indonesia's top position in February.
He will be inaugurated in October.
