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resident Susilo Bambang Yudhoyono is prepared to face tough issues that will be high on the agenda of his upcoming meeting with Australian Prime Minister Kevin Rudd, such as people smuggling and the cattle trade, says a minister.

Foreign Minister Marty Natalegawa said on Wednesday the President was aware that the issues surrounding asylum seekers had been a hot topic in Australia, and that it would very likely be raised when Yudhoyono met with Rudd in the Indonesia-Australia Annual Leaders'€™ Meeting at the Bogor Presidential Palace in West Java on Friday. The visit was initiated by Rudd'€™s predecessor Julia Gillard before she lost her position to Rudd late last month.

'€œI did not specifically refer to [the asylum seeker] issue, but if it is raised by Rudd, of course [Yudhoyono] will discuss it,'€ Marty said at the State Palace.

Rudd and his wife Thérèse Rein are scheduled to arrive in Jakarta on Thursday afternoon. His Indonesian visit will be his first overseas trip since returning as Australia'€™s prime minister, last month.

As issues surrounding asylum seekers have always been central to Australia when it comes to its relationship with Indonesia, Australian media reported that Rudd had faced pressure to seek significant improvements in his upcoming meeting with Yudhoyono.

The former foreign minister from Julia Gillard'€™s administration plans to work on the issue to win back voter support during the election slated for later this year.

'€œIn the history of the issue, we have seen Australia considering numerous options, such as the so-called Pacific solution, Malaysia solution, Timor Leste solution and so on. But Indonesia will always be adamant that this issue should not only be a burden for certain countries. This needs cooperation between the destination countries, the countries of origin and transit countries such as Indonesia,'€ Marty said when asked about the idea of turning away migrants found at sea.

'€œWe will never back down from this approach,'€ Marty added.

Presidential spokesman for foreign affairs Teuku Faizasyah said that discussions between the two state leaders would cover various issues, ranging from trade, investment and people-to-people connection as well as other regional and global issues.

On trade and investment, Marty highlighted Jakarta'€™s bid to win more Australian investment in the cattle sector.

'€œPerhaps Australia will raise issues that are their interests,'€ Marty said, adding that the issues in trade and investment would be raised by Yudhoyono to serve Indonesia'€™s interests.

'€œInvestment will not only be in infrastructure, but also in the cattle sector. This is important to establish food security and self sufficiency,'€ he added. '€œThe President said that cooperation in this sector should not be merely in the context of trade but also investment. This is to enhance the capacity of our investment so that our livestock sector can rise.'€

Two-way trade was valued at US$10.2 billion and Australian investment in Indonesia valued at $6.8 billion in 2012. '€œAustralian investment in Indonesia in the 2011-2012 period showed a massive increase of about 700 percent,'€ Marty said.

The relationship between Jakarta and Canberra has seen numerous ups and downs. As a fast-growing nation and the biggest economy in Southeast Asia, Indonesia has always been important to Australia. The suspension of live cattle exports imposed by the Australian government in 2011 was one issue that tested the relationship with Indonesia in recent years.

Political issues have frequently disturbed relations between the two countries, such as the secession of Timor Leste from Indonesia in 1999 and the independence movement by West Papua separatists.