A new forest carbon partnership for Indonesia and Australia

Updated June 13, 2008 21:53:24

Mr Rudd reviews a guard of honour before his meeting with the Indonesian President. [AFP]

Indonesia and Australia have signed off on a new forest carbon partnership that aims to fight climate change in the region.

Our Indonesia Correspondent Geoff Thompson says the Prime Minister Kevin Rudd has also agreed to co chair a democracy forum in Bali later this year.

Mr Rudd and President Susilo Yudhoyono met inside Indonesia's presidential palace for about an hour.

The two nations have agreed to work together to participate in international carbon markets.

Mr Rudd also announced a broadening of an interfaith dialogue and said he and President Yudhoyono were united in their belief that the world was not headed for a clash of civilisations.

However when asked about the biggest religious story in Indonesia at the moment, the government decreed restricting of the activities of the Muslim sect known as Ahmadiyya, Mr Rudd expressed ignorance of the subject.