Australia is open to boosting American troop rotations and increasing military plane visits as defence co-operation between the allies ramps up.

A historic pact to share nuclear-powered submarine technology - under the umbrella of a new alliance known as AUKUS - has been signed as Australian ministers held talks with counterparts in the United States.

Foreign Minister Marise Payne and Defence Minister Peter Dutton met with US Secretary of State Antony Blinken and Defense Secretary Lloyd Austin on Friday morning for the latest AUSMIN talks.

Mr Dutton said he aspired to increase troop rotations and other military co-operation between the two nations.

"If that includes basing and includes the storage of different ordinances, I think that is in Australia's best interests, in our national interests at this point in time."

On Saturday, Malaysia joined Indonesia in raising alarm bells about the military build-up in the region and the impact that the AUKUS pact, which includes Australia acquiring nuclear-propelled submarines, could have on regional stability.

Indonesia had for decades pursued an “aktif bebas”, or free and independent foreign policy.

“It’s never going to side with a partisan international alliance, so of course they will be pushing back.”

“They’re also going to be miffed because they were not consulted, just like on the Marines based in Darwin [announced a decade ago]. Despite that they won’t have a real problem, it’s just not in their interests or instincts to side with us.

“[Indonesian President] Jokowi, [Foreign Minister] Retno, [Defence Minister] Prabowo get this, they’re also miffed at what China is doing. They could be domestically wedged by their opponents so no one wants to say it publicly – this is classic south-east Asian behaviour. But like us, they have to balance economic interests and security concerns.”

“ASEAN governments are acutely aware of that and are worried that external powers are creating new architecture that doesn’t include them like the Quad and potentially AUKUS too

It is impossible to read this as anything other than a response to China’s rise, and a significant escalation of American commitment to that challenge. The United States has only ever shared this technology with the United Kingdom, so the fact that Australia is now joining this club indicates that the United States is prepared to take significant new steps and break with old norms to meet the China challenge.

Australia cannot have this capability while assuming that it does not come with heightened expectations that Australia will take America’s side in any dispute with China.

That is the real long-term significance of the deal ­– even more than the agreement to base Marines in Darwin, this deal signals that Australia is betting on the United States as a long-term partner in its region as China’s rise continues.

It is extraordinary that this momentous decision could be made without parliamentary or public scrutiny.

Dutton said the latest talks in Washington had “reinforced our shared commitment to ensuring an alliance that is match-fit to meet the strategic challenges ahead”.

He announced that Australia and the US would be “significantly enhancing our force posture cooperation”, including “greater air cooperation through rotational deployments of all types of US military aircraft to Australia” including bombers.

Dutton also indicated he would like to see an increase in the number of US troops coming on rotation through Darwin.

He said there would be more military exercises with the US, and greater combined exercises with other partners in the region. He was also open to the basing and storage of military supplies in Australia.

Australia’s defence minister says Aukus pact makes region safer and ‘no amount of propaganda can dismiss the facts’

As Australia’s relationship with China becomes increasingly tense, a new development in the Aussie outback seeks to strengthen ties with our US allies.

Details and photos of the much anticipated $747m army base expansion planned for the Northern Territory have been released to the public.

The new development will help the Australian Defence Force and United States house and train troops on Aussie land.

The project, which spans four locations over 580km across the top end, comes in the wake of increasing global tensions between Australia, the US and China.

The four new military sites will be located at Robertson Barracks, Kangaroo Flats, Mount Bundey and Bradshaw Field.