PRIME Minister Kevin Rudd will tell business leaders in Jakarta that Australia must look to its northern neighbour as a land of opportunity but that more must be done to boost trade between the two countries.
The prime minister arrived in Jakarta on Thursday night ahead of an annual leaders' meeting in Bogor, near the capital on Friday, where trade as well as the perennial issues of asylum seekers and cattle are set to be high on the agenda.
Mr Rudd will first address a business breakfast in Jakarta on Friday morning, where he will point rapidly expanding middle class in Indonesia as a future source of many opportunities for both countries.
"As one of the fastest growing economies in the region and the world, Indonesia should be one of our biggest trading partners. It will have a trillion dollar economy in a few years," Mr Rudd is expected to say in his speech.
"By 2030, 135 million Indonesians will be middle class consumers driving up demand for goods and services. This rapid growth should mean more opportunities for businesses in both countries.
"But Indonesia remains outside our top 10 trading partners. We need to do more to engage with one of our most important neighbours."
Mr Rudd has vowed to lead a delegation of Australia's top 100 businesses to Indonesia by the end of this year if he is re-elected.
The prime minister, accompanied by his wife Therese Rein, had dinner with Indonesian President Susilo Bambang Yudhoyono and his wife on Thursday night.
Mr Rudd said shortly after his arrival in Jakarta that boosting trade, including access for Australian businesses, as well as discussions around the cattle trade, would be his priority during his visit.
"We share a truly comprehensive strategic partnership based on mutual respect, shared democratic values and a common interest in building a stable and prosperous region," Mr Rudd said.
Australia's cattle trade with Indonesia has never fully recovered from the 2011 temporary ban on live exports by the Labor government in response to evidence of animal cruelty in Indonesian abattoirs.
The asylum-seeker issue will also be discussed.
But Mr Rudd said it was "quite wrong to have huge expectations that there's going to be some headline result" out of the talks with Dr Yudhoyono.
"Of course border security will be part of the discussions I have with President Yudhoyono," he said.
He said his discussions with the Indonesian president would focus on co-operative strategies of dealing with people smuggling, while hitting out at Opposition Leader Tony Abbott's policy of turning asylum-seeker boats around.
"I'm in the business of working with our Indonesian friends and partners on what actually works in dealing with the challenge of border security rather than using three-word slogans that sound good but in practice don't work."
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