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hina's Prime Minister Wen Jiabao will visit Jakarta late April to meet with President Susilo Bambang Yudhoyono, says the Foreign Ministry.

"The date and agenda have not yet been decided. We are still in the stage of matching the schedules of both leaders," Foreign Ministry spokesman Teuku Faizasyah said Thursday.

As the state visit is scheduled a month after the planned visit of US President Barack Obama in late March, observers say both countries are tussliing for economic influence in the country.

Indonesia has cooperated closely on security and economy with Washington, but has also seen relations with Beijing growing stronger in recent years.

Observers said trade and investment between two of Asia's leading economies was likely to be the main topic during Wen's visit. Indonesia's manufacturing industry has voiced fears over a flood of cheap Chinese goods after a free trade agreement between China and ASEAN came into effect in January this year.

Lecturer at the University of Indonesia Syamsul Hadi said Jakarta should take advantage of the visit to lobby China over a renegotiation of the locally controversial ASEAN-China Free Trade Agreement.

Jakarta has proposed a delay in the implementation of zero-tariff import duties for 228 tariff posts.

"This is a chance for President Yudhoyono to discuss the issue thoroughly and try to woo Premier Wen for the renegotiation proposal.

"I believe it will end with a good result because China does not want to be perceived as an enemy here, especially as his visit follows Obama's, who is very popular here."

Syamsul said there were other issues that should be highlighted in the agenda, including energy security, strategic partnerships and current trade imbalances.

He said China would likely raise energy security issues because 80 percent of their energy supplies pass through the Malacca Strait.

"China has been vying for increased investment in the energy sector here to support their domestic needs."

He said both Beijing and Jakarta should address the trade imbalances which favor China.

In 2008, bilateral trade stood at US$ 31.5 billion.

"Trade imbalance is a common concern in the region when it comes to China. China has been increasingly perceived as a common enemy and it should avoid worsening this hostility by addressing the matter with its trade partners."