Pacific Island leaders are in Fiji for official talks which exclude Australia and New Zealand as participants.

Fiji’s rival club of Pacific Island leaders is meeting at a resort island ahead of a two-day summit.

Indonesian President Susilo Bambang Yudhoyono will deliver the keynote address to the second Pacific Island Development Forum on Denarau island on Thursday.

He arrived on Tuesday night greeted by a 100-man military guard of honour.

Climate change and green economic growth are set to dominate the agenda.

Unlike the Pacific Islands Forum, Australia and New Zealand are excluded from the Fijian-initiated group.

However, officials from Australia’s High Commission in Suva will attend as observers.

Twelve Pacific Island governments have sent representatives to the forum, down from 14 at the inaugural summit in 2013.

Morocco, Venezuela, Israel, Singapore, Kazakhstan, Kuwait and Georgia have also sent observers.

Fiji’s caretaker prime minister, Rear Admiral Frank Bainimarama set up the development forum in what some experts believe was a bid to steal some thunder from its long-established rival.

Fiji was suspended from Pacific Islands Forum in 2009 after it failed to hold democratic elections following the 2006 military coup.

However, the country is due to go to the polls in September.