Trade minister Shoichi Nakagawa told visiting Indonesian President Susilo Bambang Yudhoyono on Wednesday that Tokyo will discuss ways to help nurture Indonesia's small companies and human resources during talks for a bilateral free-trade agreement, a Japanese official said.

"It's important that the bilateral FTA lead to strengthening the competitiveness of the Indonesian economy," the minister of economy, trade and industry was quoted as telling Yudhoyono.

Yudhoyono, who arrived in Japan on Tuesday, is scheduled to meet with Prime Minister Junichiro Koizumi on Thursday to formally agree on launching full-fledged negotiations for a bilateral FTA.

Nakagawa said the FTA talks will include ways to boost mutual investment, according to the official.

Yudhoyono told Nakagawa that Indonesia wants to discuss the feasibility of an FTA with Japan in a concrete manner and that the agreement would not only improve the Indonesian economy, but also help stabilize the region, including the Malacca Strait.