President Jokowi arrives in Sydney

The summit will discuss strengthening economy partnership, and eradicating terrorism in Southeast Asia and Australia.

Myanmar's State Counsellor and de facto leader Aung San Suu Kyi will also attend the summit and is expected to have bilateral meetings with Australian PM Malcolm Turnbull.

Cosmopolitan Sydney will bear witness, at this first-ever Australia-Asean Special Summit 2018, the charting of an unprecedented formal arrangement for both Australia and the regional grouping to effectively tackle terror threats.

"We must face the world, not turn from it. Embrace free trade, not retreat from it", Turnbull said on day one of the three-day summit.

The prime minister will make the announcement during a keynote address at a forum of chief executive officers alongside Indonesian President Joko Widodo. But Turnbull is looking at Asean for its potential to drive free trade in the Indo-Pacific region in a way that the major economies, the United States and China, can not without creating suspicion and division.

Malaysia was past year Australia's 9th largest trading partner.

Brunei, Malaysia, Vietnam, the Philippines, all of which are members of ASEAN, and Taiwan also have claims in the sea.

Australia and ASEAN have been close partners since the inception of the regional body in 1967.

Australia's trade with Asean countries (2016-2017) amounted to over AUD100 billion, more than that with the United States and Japan.

Definitely, however, statements supporting freedom of navigation, resolving issues through global law and dialogue and support for the code of conduct are likely to be included in the ASEAN-Australia communique. "It is not a ladder to get you out of the low growth trap, it is a shovel to dig it much deeper", Turnbull told a special meeting of ASEAN in Sydney.

There will also be protests held condemning Suu Kyi for her lack of action in the continued persecution of Rohingya Muslims, which has seen nearly 700,000 flee across the border into neighbouring Bangladesh. Amnesty International has accused ASEAN of being "shamefully silent" about the crackdown.

It is also expected that Australia will call on ASEAN nations vulnerable to tailored North Korean efforts to subvert sanctions to maintain maximum pressure.

"Australia's failure to publicly raise human-rights concerns at the summit would not only provide a propaganda coup to Asean's most abusive leaders, it would embolden all the region's leaders contemplating major crackdowns, jailing journalists, or dismantling democratic institutions", Human Rights Watch Australian Director Elaine Pearson said in a statement.

Hun Sen has warned potential protesters against burning effigies of him in Sydney, saying: "I will follow you all the way to your doorstep and beat you right there ..."