Indonesia has softened its suspension of military co-operation with Australia.
Senior cabinet minister Wiranto told reporters in Jakarta the suspension applied only to language lessons at special forces academies.
Less than 48 hours earlier it was revealed the Indonesian military had suspended all defence co-operation with Australia.
The suspension was triggered following an incident last November involving teaching materials causing offence to a special forces trainer at a Perth military academy.
The matter has been under investigation in Australia.
It is understood Army Chief Angus Campbell is being dispatched to Jakarta in coming days.
Indonesian President Joko Widodo said his country's relationship with Australia is in good shape.
"Indonesia and Australia have both agreed to respect one another and not to interfere in each other's domestic affairs," he told reporters in Jakarta.
"Although the issue lies at the operational level, this is a matter of principle."
Prime Minister Malcolm Turnbull said he looked forward to the issue being resolved as soon as possible.
Labour MP Luke Gosling, who spent 13 years in the army, said it was sad news Indonesia was suspending the language training co-operation with Australia's defence force.
"My experience of Perth program was excellent & respectful," Mr Gosling tweeted.
Meanwhile, reports have emerged that Indonesia's military chief Gatot Nurmantyo hired a tourist boat in Darwin for a couple of hours to spy on US Marine landing bases.
"Australia is a continental country, (why does it need) marines?" he told Indonesian media website Viva.
