Mr Yudhoyono plans to meet Mr Bush later this month
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Indonesia's new defence minister is to visit the US to lobby for an end to Washington's arms embargo, as part of fresh moves to normalise relations.
Juwono Sudarsono will brief US officials about his country's need for arms and other military equipment.
The US banned weapons sales and direct military support to Indonesia because of the 1999 violence in East Timor.
Indonesia's new President Yudhoyono also hopes to meet President George W Bush at an Apec summit this month.
Foreign Minister Hassan Wirayuda gave no date for Mr Sudarsono's visit, but said it would take place early next year at the latest.
Indonesia, the world's most populous Muslim nation, has emerged as a key player in Washington's so-called war on terror. The new government of Susilo Bambang Yudhoyono, who won September's presidential election, is keen to present itself as a credible ally.
"We have really transformed ourselves into a democratic society," Indonesian Foreign Ministry spokesman Marty Natalegawa told BBC News.
"We feel that it is important that this new reality should be reflected by the United States."
Mr Bush is one of the leaders the new Indonesian President plans to meet on the sidelines of the Apec conference in Chile, which begins on 20 November.
Washington broke off military ties with Indonesia after pro-Jakarta militias went on the rampage in East Timor during and after the province's vote for independence from Indonesia in 1999.
It has insisted that those responsible must be held accountable before normal ties can resume.
Many thought responsible for East Timor's 1999 bloodshed walk free
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US officials have expressed disappointment at the outcome of Indonesian tribunals set up to try those accused.
Last week, a court overturned a conviction against Abilio Soares, the last Indonesian governor of East Timor and the only man jailed over the violence.