Rice will meet with Indonesian President Susilo Bambang Yudhoyono and top ministers for talks that will also center on building democracy and regional security.

She is expected to raise with Indonesian leaders foreign media controls imposed in Jakarta and regional efforts to tackle outbreaks of bird flu and contain a potential influenza pandemic among humans.

Last week, Rice said that Washington also sought Jakarta's help in breaking the political impasse in the Middle East, following the Islamic militant group Hamas' upset victory in January's Palestinian elections.

For its part, Indonesia is said to be eager to discuss US assistance for modernizing its defense forces given a resumption of military ties last year, as well as general economic aid.

Bilateral relations, which have been strained in the past over the situation in East Timor, improved after the massive US aid effort to survivors of the December 2004 tsunami, which killed 168,000 Indonesians.

Upon leaving Indonesia, the US secretary heads to Australia for talks with her Australian and Japanese counterparts.

On Saturday, Rice was in Valparaiso, some 120 kilometers (68 miles) west of Santiago, for the inauguration of Chile's first woman president Michelle Bachelet.

On the Margins of the ceremony, she met with Bolivian President Evo Morales to discuss how the two countries can combat illegal drug trafficking

Their meeting came against a backdrop of mounting bilateral tensions since Morales took office on January 22. Most of the irritation stems from differences over the drug war. Rice and Morales did not immediately comment publicly on their discussion.

"The United States and Bolivia must work together to counter the drug trade," a US official who attended their meeting quoted Rice as telling Morales.

"We want to have a good friendship with Bolivia and help the Bolivian people prosper through economic expansion, economic trade opportunities," she reportedly said.

On the plane en route to Chile, Rice had stressed the importance of meeting with Morales.

"President Morales has said that he is also concerned about the security issues associated with the drug trade and so I think that gives us a good starting point for discussion," Rice said.

Morales on several occasions has condemned drug trafficking, but insists that coca cultivation should not be stigmatized or prohibited as US policy advocates.

Last week the United States withdrew some 400,000 dollars' worth of military aid for an anti-terrorist unit in Bolivia, much to Morales's displeasure.

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