The second Conference on Cooperation among East Asian Countries for Palestinian Development (CEAPAD) is aimed at boosting infrastructure and supporting the private sector in the Palestinian Territories.
But a looming deadline for a full Middle East peace deal brokered by US Secretary of State John Kerry is expected to feature prominently in talks.
"We still believe that the two-state vision can be envisaged and realised. And here I must commend the... Efforts of Mr John Kerry," Palestinian prime minister Rami Hamdallah said during the conference's opening.
The document has not yet been made public, but Hamdallah said yesterday "all issues actually have been (put) on the table".
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The document is understood to include a non-binding proposal laying out guidelines for negotiating the central issues of the conflict, including such as borders, security, Jerusalem, the settlements and the right of return for Palestinian refugees.
Hamdallah expressed gratitude to donor nations, but said Israeli settlements were "severely" hampering development.
"The people of Palestine have been struggling to achieve this dream for more than five decades," Indonesian President Susilo Bambang Yudhoyono said at the opening.
"Providing them with capacity-building programme is critical."
Yudhoyono said that Indonesia envisaged a Middle East "at peace with itself and the rest of the world" and that peace would also depend on a treaty on nuclear weapons and weapons of mass destruction.