Foreign Minister Julie Bishop says she has taken on board Indonesia's concerns about Australian spying after a meeting with her Indonesian counterpart.
Indonesia has been angered by claims that Australia used its Jakarta embassy as a spy base.
Earlier this week foreign minister Marty Natalegawa demanded an assurance Australia would stop spying on Indonesian officials, and threatened to withdraw cooperation on intelligence gathering for things like people smuggling.
Ms Bishop today met Dr Natalegawa in Bali, where she travelled for an annual democracy forum, but will not say what was discussed during the meeting.
"The issue was raised. I took aboard the concerns that had been raised, we take them very seriously," she said.
Ms Bishop says Australia will not do anything to compromise the relationship with Indonesia, but would not say if that meant an end to spying.
Meanwhile Defence Minister David Johnston has met with his Indonesian counterpart, Purnomo Yusgianto, in Jakarta.
Few details on the talks have been released.
Mr Johnston was not around for the press conference after the two-hour meeting, as he had to return to Perth.
Mr Purnomo Yusgiantoro says the embassy spying allegations are being discussed at foreign ministerial level and it is not appropriate for him to comment, except to say that Indonesia's defence systems are strong.