JAKARTA, Aug. 31 (Xinhua) -- Indonesia and Australia on Friday hailed the finalization of the free trade negotiations of the two countries and pledged to step up the fight against terrorism.

Indonesian President Joko Widodo met with visiting newly-elected Australian Prime Minister Scott Morrison at the presidential palace.

President Widodo said he paid heed to the open economy which is looked to give impetus to the efforts to bolster economies of both nations.

"On this matter, we hail the conclusion of the substantive negotiations of Indonesia-Australia Comprehensive Economic Partnership," said Widodo.

The conclusion marks the end of eight-year talks between the two countries.

On security, President Widodo noted that Indonesia and Australia agreed to boost cooperation in the battle against extremism and strengthen their collaboration on fighting cyber crimes.

"We have a strong commitment to persistently cooperate in addressing the issues in the region and the world, such as fighting against terrorism," he said.

Indonesia exports to Australia comprise metal products, chemistry products, textile and footwear and vehicles, according to the Indonesian Industry Ministry.

Under the free trade deal, Australian universities are allowed to own shares in Indonesian institution.

Australia ships wheat approximately 50 percent of its total exports to Indonesia, followed by cotton, live animals, sugar and beef.

Indonesia, particularly the Bali resort island, is one of the major destination for most of Australian holidaymakers, who have often been targeted by local militants.