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The two leaders discussed bilateral ties and relations between China and the Association of Southeast Asian Nations (ASEAN).
President Xi will also become the first foreign leader to address Indonesia’s parliament on Thursday.
The two sides are set to issue a major political document and sign a series of key deals on mining and transportation.
Bilateral trade between the two nations reached $66.22 billion last year, four times that of 2005.
Trade between China and Indonesia stood at nearly $33 billion for the first eight months of this year, making it Indonesia’s second-biggest trading partner.
Relations between China and Indonesia, the largest ASEAN country, form an important part of the China-ASEAN relationship.
The ailing Indonesia rupiah is Asia’s weakest currency this year.
China and Indonesia could also announce a currency swap agreement during Xi’s visit to bolster the currency.
The Chinese president will attend the 21st economic leaders’ meeting of the Asia-Pacific Economic Cooperation (APEC) in the resort island of Bali from October 7- 8.
Xi is also going to visit Malaysia while incidentally US Barack Obama announced on Monday that he is cancelling a trip to the country to deal with the US Government shutdown.