Yudhoyono will deliver a speech during the second Pacific Islands Development Forum (PIDF) summit – currently under-way in Nadi.
He’s also set to hold talks with Fiji’s interim prime minister Frank Bainimarama and Fiji’s president Ratu Epeli Nailatikau.
Leaders from both sides are expected to discuss the sensitive situation in West Papua, where there’s been an active struggle against Indonesian rule.
Regional security and maritime issues will also be on the agenda.
In a statement, Bainimarama says Indonesia is one of the Pacific’s most important partners.
“President Yudhoyono’s visit marks a historic moment for Fiji and for the region,” he says.
Officials from 12 Pacific island governments, as well as observers from Morocco, Venezuela, Israel, Singapore, Kazakhstan, Kuwait and Georgia will attend the summit.
The Lowy Institute’s Melanesia programme director, Jenny Hayward-Jones, says it is very important for Fiji to be hosting someone as important as President Yudhoyono.
She says the Indonesian government wants to send a message that it values its relationship with Melanesian countries.
But she says the West Papua discussion is unlikely to be discussed.
"I think probably you’ll see avoidance of the West Papua issue if anything. But I think what you’ll see is the Indonesian president talk about the importance of more economic ties, more trade and investment, certainly there’s opportunities for that, more educational ties between Indonesia and the region and probably offering to help Pacific Island countries interact more with Asian countries.”