Obama to target forest, climate aid in Indonesia trip

* Obama to help Indonesia save forests and seas

* Funding to fight climate change, preserve reefs

* Indonesia could become major source of CO2 offsets

By Sunanda Creagh and David Fogarty

JAKARTA/SINGAPORE, Nov 3 (Reuters) - When U.S. President Barack Obama flies over the vast Indonesian archipelago next week, he will see first hand the size of two of the nation's greatest and most threatened resources: its forests and seas.

Both are widely expected to be at the heart of efforts to boost ties between the United States and Indonesia and to step up the fight against climate change, officials and sources say.

Indonesia has some of the world's most complex and diverse forests but also one of the highest deforestation rates.

Saving them from illegal logging and unsustainable clearing for agriculture and mining could help Indonesia meet its goals to cut greenhouse emissions -- the third highest globally according to the World Bank when taking into account deforestation and land use.

It would also help the United States in its aims to fight climate change, and help Indonesia become a source of tradeable forest carbon offsets that would help polluting U.S industries meet future targets to cut emissions.