Australia, Indonesia to sign guideline on spying

Sydney - Australia and Indonesia are due to sign an agreement on Wednesday to resolve a spying scandal that took diplomatic ties to a new low last year, Australian media reports said.

Foreign minister Julie Bishop and her Indonesian counterpart Marty Natalegawa would sign the document in Bali, broadcaster ABC said.

Indonesia demanded the code of conduct after it was revealed that Australia's intelligence services had eavesdropped on Indonesian President Susilo Bambang Yudhoyono and his inner circle in 2009.

"This specifically says Australia and Indonesia will not use our resources, including our intelligence resources, to harm each other's interests", Bishop told ABC.

"It also lays the ground for greater cooperation between our intelligence agencies."

Australia's spy activity involving Indonesia came to light via documents leaked to the media by former US National Security Agency contractor Edward Snowden.

Indonesia recalled its ambassador to Canberra in protest and suspended cooperation in the areas of defence, intelligence and curbing people-smuggling.