Indonesia is to co-lead the multi-national group of observers which will monitor Fiji's general election in September.
Fiji's prime minister made the announcement as he welcomed the Indonesian president, Susilo Bambang Yudhoyono, to the Pacific Islands Development Forum in Nadi today.
Rear Admiral Bainimarama thanked the president for participating in what he describes as an historic initiative in embarking on genuine democracy.
He praised Indonesia as the region's most influential country on the world stage and said President Yudhoyono had made a singular achievement in presiding over the development of genuine democracy in Indonesia.
The prime minister said the president was uniquely qualified to steer discussions at the second meeting of the Forum, which was set up by Fiji as an alternative to the Pacific Islands Forum from which Fiji is suspended.
Also attending the PIDF are the presidents of Kiribati and Nauru, the vice presidents of the Federated States of Micronesia and the Marshall Islands and the Prime Minister of Tonga.