Anthony Albanese has described Australia's relationship with Indonesia as sophisticated, as he touched down in the city of Massakar on the second day of his visit to the Asian nation.
The prime minister landed in the Indonesian port city on Tuesday where he received a ceremonial welcome and was gifted a traditional silk necklace on arrival.
Mr Albanese is the first Australian prime minister to visit Makassar, as the government looks to extend ties with Indonesia.
Speaking to reporters after arriving, the prime minister said he wanted to emphasise Australia's relationship with the whole country and not just Bali and Jakarta.
"It's a sophisticated relationship," he said.
"I wanted to make sure that we send a message as well that we understand that this vast country is one that's diverse, one that is a land of opportunity.
"Makassar has a great future as part of Indonesia's growth."
Makassar on the island of Sulawesi has historical trade ties with Australian Indigenous people going back hundreds of years.
He will give a speech at Hasanuddin University, where he will address alumni and faculty members.
The address is expected to touch on multiculturalism, trade, as well as education partnerships between Australia and Indonesia.
Following the speech, Mr Albanese will meet with the governor of South Sulawesi for formal talks.
The prime minister will finish off the trip to Makassar by visiting a flour mill, one of the largest in the world, which uses Australian wheat.
Mr Albanese said Makassar represented an important financial centre in Indonesia which would be critical for trade links.
"There are huge opportunities for Australian business and investment here in Indonesia," he said.
Business leaders have also accompanied Mr Albanese on the visit to Indonesia, holding key trade talks.
One of the leaders in the delegation was Business Council of Australia chief executive Jennifer Westacott, who said the trip had been a success.
"There are huge opportunities for Australian businesses, which means there's huge opportunities for Australia's economy and wages and jobs in doing more with this market," she told ABC radio.
"There was more to us being here in Indonesia than trade and investment, it was about resetting Australia's direction."
Mr Albanese said he wanted to realise the potential of economic partnerships with Indonesia, with the Asian nation set to become one of the five-largest economies in the world.
The prime minister met Indonesian President Joko Widodo on Monday, with the two leaders discussing trade, climate change and regional issues.
