Trade, strategic ties and domestic politics will feature during official talks between visiting Indonesian President Joko Widodo and Prime Minister Malcolm Turnbull.

The Indonesian leader is on his second day of a whirlwind tour of Australia after arriving in Sydney on Saturday.

Mr Turnbull said he was looking forward to their bilateral meeting on Sunday, picking up where the pair left off when the prime minister visited Jakarta in 2015.

Indonesia's developing potential represents a golden opportunity for Australia, he wrote in Fairfax Media papers.

"As I said on the day, the prospects for our two countries to work together - to grow our economies - have never been better," he said.

On the agenda will be progress on an Indonesian-Australian free trade deal which is tracking to be finalised by the end of the year, perhaps as early as August.

The pair, both former businessmen, are also set to discuss strategic issues, counter-terrorism, cyber security and mining.

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.

Mr Widodo, known informally as Jokowi, will also host a cultural event for the Sydney Indonesian community in Darling Harbour.

He will also meet Governor General Peter Cosgrove and other ministers before attending a state lunch at Admiralty House where Mr Widodo will receive a ceremonial welcome.

The Indonesian leader and his wife will then leave for home in the afternoon.

AAP