But there is confusion about what any new US presence will involve,with the acting Northern Territory Chief Minister,Delia Lawrie,dismissing the report of a permanent US military base in Darwin as''speculative''.
''Federal Defence Minister Stephen Smith has made it clear that President Obama will not be announcing a permanent base in Darwin,''she said.''What is being contemplated is an expansion in training and exercises done with the United States,meaning more troops,planes and ships in and out of Darwin.''
Indonesia had been eager for foreign and defence ministers from both countries to meet before the leaders'talks to gain better understanding of the American plan,but a date could not be settled.
An announcement is expected from Mr Obama next week during a whistlestop visit to Australia.
Australian Defence chiefs held talks with senior Chinese general Ma Xiaotian this week for discussions on military co-operation.
While the US plans for northern Australia have been widely interpreted as a strategy for countering China,Indonesia wants to avoid any misunderstanding the troop expansion will be aimed at the archipelago.
''Psychologically,it is not easy to have such a big presence on the doorstep,people in Indonesia still look at Australia with suspicion about hidden motives,''a source said.