Sealing a free trade deal with Indonesia as early as August will be on the agenda during President Joko Widodo's talks with Prime Minister Malcolm Turnbull in Sydney.
The Indonesian president and First Lady Iriana Widodo will arrive in Australia on Saturday morning.
An Indonesian team of 79 officials has been in Canberra this week for the fourth round of free trade negotiations since March last year.
The leaders will be briefed on the progress to date.
Once delivered, the agreement will be Indonesia's first bilateral free trade deal in a decade.
The deal is tracking to be finalised by year's end.
AAP understands there are some hopes it could be completed as early as August, because there are no insurmountable sticking points, unlike Australia's negotiations with the European Union, where agriculture tariffs cuts are proving tricky.
Australian universities are lobbying for permission to open up campuses in Indonesia under a free trade pact.
Indonesia is Australia's 12th largest trading partner and there are only about 500 Australian businesses with a presence in the country.
The biggest Australian export to Indonesia was wheat in 2015-2016. Source: Public Domain
Outgoing Indonesian ambassador Nadjib Riphat Kesoema said strong economic ties help anchor Australian-Indonesian relations during times of turbulence.
Both countries are at the mercy of slowing growth from major trading partners such as China and had to stand firm against growing protectionism sentiment globally, he said.
"When we keep our economies open and dismantle barriers jobs are created and prosperity is increased," the ambassador said.
Indonesia's chief negotiator Deddy Saleh characterised the deal as a super free trade agreement and said some parts could be implemented before it is finalised.
The private sector in both countries has had direct input into negotiations.
The president is expected to meet NSW Premier Gladys Berejiklian and Opposition Leader Bill Shorten on Saturday as well as business representatives from Blackmores, Macquarie Bank and BlueScope Steel.
Blackmores last September launched a joint venture with Indonesian firm Kalbe to supply vitamin products to the local market.
Mr Widodo will also have a private dinner with the prime minister.
The pair, both former businessmen, are set to discuss strategic issues, counter-terrorism, cyber security and mining during their bilateral meeting on Sunday.
Mr Widodo is expected raise the idea of holding joint patrols in the South China Sea.
There are likely to be several formal agreements on security, people-to-people links and tourism.
Ahead of the visit, Jakarta expressed some concern about the rise of Pauline Hanson's One Nation Party and its view on Islam.
"It's a concern for any country; for Indonesia when it happens in Indonesia and also I'm sure it's a concern for Australia," Indonesia's foreign ministry spokesman Arrmanatha Nasir told reporters.
Mr Widodo, known informally as Jokowi, will greet expats living in Australia at a community concert with Indonesian performers.
He'll also meet with Governor General Sir Peter Cosgrove.
Mr Widodo was due to visit Australia late last year but was forced to postpone after protests erupted in the capital at comments Jakarta's Christian governor made about the Koran.
