Aust and Indon in people swap talks

An Indonesian government advisor says talks are under way with Canberra about a people-swap deal. Source: AAP

A SENIOR Indonesian government adviser says talks are underway with Canberra about a people-swap deal similar to Labor's failed arrangement with Malaysia.

Asylum seekers en route to Australia would be sent back to Indonesia in exchange for refugees sitting in detention centres there.

"The cost of the burdens would be borne by Australia," Dewi Fortuna Anwar, adviser to Vice-President Boediono, told the ABC.

The arrangement would be similar to the Malaysia deal negotiated by the Gillard government but quashed by the High Court and rejected by parliament.

Under that deal, asylum seekers in detention in Australia would have been transferred to Malaysia.

Australia would then have taken assessed refugees from Malaysia.

Ms Anwar stressed the importance for close talks between Jakarta and Canberra on the asylum-seeker issue.

"It should not just be one side imposing its will on the others," she said.

Labor frontbencher Chris Bowen says the Abbott government needs to "come clean" on the discussions, especially as the coalition opposed the Malaysia deal.

"Frankly it's cowardly not to be up front with the Australian people about difficult issues such as those occurring on our high seas at the moment," he told ABC radio.

Any deal that increased regional co-operation on asylum seekers should be looked at carefully.

"That's the approach we took in office," Mr Bowen said.

Greens senator Sarah Hanson-Young said the news smacked of absolute desperation from a prime minister whose election policy was in tatters.

"This is trading in human lives, human suffering, for the sake of a desperate government who went to the election saying one thing, and has failed to be able to deliver," she said.

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