Prime Minister Julia Gillard will travel to Indonesia next month to discuss ways of combating people smuggling and terrorism.

Ms Gillard will meet President Susilo Bambang Yudhoyono on July 5 to discuss a number of political, security and commercial issues.

The talks, which are part of the annual Indonesia-Australia Leaders' Meeting, will canvas issues around education, trade, climate change and transnational crimes such as drug trafficking.

They'll also cover ways of stopping people smuggling and counter terrorism.

Deputy Opposition Leader Julie Bishop on Wednesday urged Ms Gillard to travel to Indonesia and hold discussions with President Yudhoyono on ways of combating people smugglers.

The prime minister said she had already held a number of meetings with him and accused the opposition of insulting Indonesia with their policy of towing back asylum seeker boats.

Ms Gillard will be in Indonesia on July 4 and 5 and will visit Jakarta and Bogor.

AAP

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