VZCZCXRO6052
PP RUEHDT RUEHPB
DE RUEHJA #1820/01 3061047
ZNR UUUUU ZZH
P 021047Z NOV 09
FM AMEMBASSY JAKARTA
TO RUEHKL/AMEMBASSY KUALA LUMPUR PRIORITY 2609
RUEHC/SECSTATE WASHDC PRIORITY 3706
INFO RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE
RHEHNSC/NSC WASHDC
RHMFIUU/HQ USPACOM
RUEKJCS/SECDEF WASHDC
RHEFDIA/DIA WASHINGTON DC

UNCLAS SECTION 01 OF 03 JAKARTA 001820 
 
SENSITIVE 
SIPDIS 
 
KUALA LUMPUR PLEASE PASS TO EINHORN DELEGATION 
DEPARTMENT FOR EAP, ISN, EAP/MTS, EAP/RSP, ISN/RA 
NSC FOR D WALTON 
 
E.O. 12958: N/A 
TAGS: PREL PTER PGOV MNUC ECON AORC IAEA ID
SUBJECT: SCENSCETTER FOR VISIT OF SPECIAL ADVISOR EINHORN 
TO INDONESIA 
 
SENSITIVE BUT UNCLASSIFIED -- PLEASE HANDLE ACCORDINGLY 
 
¶1.  (SBU) SUMMARY:  Special Advisor Einhorn, Embassy Jakarta 
warmly welcomes your visit.  Indonesia and the United States 
are key partners in promoting democracy and security in 
Southeast Asia and have growing cooperation on 
nonproliferation.  The GOI is favorably disposed toward what 
it views as a balanced American policy stressing both 
disarmament and nonproliferation.  Indonesia supports 
international efforts to prevent Iran and North Korea from 
acquiring nuclear weapons, albeit while supporting those 
countries' right to peaceful use of nuclear power.  Ten years 
of political and economic reform have made Indonesia 
democratic, stable, and increasingly confident about its 
leadership role in Southeast Asia.  Indonesia has held 
successful, free and fair elections; has weathered the global 
financial crisis; and is tackling internal security threats. 
After the terrorist attacks of July 17, the Indonesian 
government and people are resolute in overcoming the 
terrorist threat.  Our Comprehensive Partnership with 
Indonesia will bolster Indonesia's reform efforts and advance 
U.S. interests in the region.  END SUMMARY. 
 
MOVING TOWARD MORE NONPROLIFERATION COOPERATION 
 
¶2.  (SBU) Indonesia is positively disposed toward the U.S. 
nonproliferation agenda, not least because of what the GOI 
views as the Administration's balanced perspective on 
nonproliferation and disarmament issues.  That balanced 
position is key to ensuring Indonesia's active and 
constructive role on a host of related issues.  The GOI has 
been vocal about its intention to move forward with 
ratification of the CTBT (Comprehensive Test Ban Treaty) 
following U.S. ratification.  Indonesia takes its role as a 
leader of the Non-Aligned Movement and ASEAN seriously and 
views nonproliferation issues through that prism. 
 
IRAN 
 
¶3. (SBU) Indonesia maintains friendly relations with Iran 
although ties between the two countries are not particularly 
deep.  Bilateral trade is minimal and several planned joint 
projects--including an oil refinery and fertilizer 
plant--have yet to materialize. The Iranian Embassy in 
Jakarta has attempted to reach out to Indonesian Muslim 
organizations.  However, the Iranians do not exert much 
influence as a result of those efforts. 
 
¶4. (SBU) Indonesian officials have underscored their 
opposition to any Iranian effort to develop nuclear weapons. 
However, they are equally adamant about Iran's right under 
the Nuclear Nonproliferation Treaty (NPT) to the peaceful use 
of nuclear energy, subject to internationally accepted 
safeguards.  Indonesian leaders have consistently voiced 
support for P5 1 efforts to find a peaceful resolution of the 
issues surrounding Iran's nuclear program. President 
Yudhoyono has urged Iranian leaders to cooperate with the 
IAEA and to meet other international nonproliferation 
obligations. 
 
DPRK 
 
¶5. (SBU) While Indonesian officials are proud of the 
country's long history of good relations with both North and 
South Korea, Pyongyang has very little influence here.  In 
contrast, Seoul is an increasingly important partner for 
Indonesia, particularly on the trade and investment front. 
The Indonesians have long supported the Six Party Talks and 
regularly call on the DPRK to adhere to its obligations under 
the relevant UNSC resolutions and other international 
commitments regarding its nuclear program.  As with Iran, 
Indonesia supports North Korea's right to a peaceful nuclear 
program as a matter of principle.  However, Pyongyang's 
nuclear tests have caused Indonesian leaders to be skeptical 
of North Korean claims that their nuclear program is for 
peaceful purposes.  Some Indonesian officials have suggested 
that Indonesia could help facilitate Six Party Talks and 
noted that the ASEAN Regional Forum is the only international 
group that includes all six participants. 
 
THE BROADER PICTURE:  A COMPREHENSIVE PARTNERSHIP 
 
JAKARTA 00001820  002 OF 003 
 
 
 
¶6.  (SBU) President Yudhoyono proposed that the U.S. and 
Indonesia launch a Comprehensive Partnership in his November 
2008 speech in Washington.  Secretary Clinton's visit in 
February 2009 began a dialogue with Indonesians about the key 
elements of that partnership.  The absence of a November 
POTUS visit to Jakarta, which was anticipated by Indonesians 
both inside and outside government, has slowed the pace of 
progress on the Partnership but not GOI enthusiasm. 
 
¶7.  (SBU) Even without a presidential visit this year, key 
elements of the Comprehensive Partnership are moving forward. 
 These include the return of the Peace Corps to Indonesia, a 
science and technology agreement, cooperation on climate 
change, an OPIC investment incentive agreement, and, 
possibly, Indonesian training of Afghan police.  Under a 
Comprehensive Partnership, we will strengthen Indonesia's 
democratic institutions and capacity to promote democracy 
beyond its borders.  The partnership will also allow us to 
expand our already robust regional security cooperation and 
deepen our cooperation with the Indonesian military to 
enhance its capability to provide disaster relief and 
participate in international peacekeeping operations.  We 
will promote the people-to-people ties that are critical to 
the success of our partnership, including expanding education 
cooperation.  In addition to our discussions with the 
Indonesians on their commitments to reduce emissions from 
deforestation, our cooperation is deepening on food security 
focusing on fisheries and on combating emerging and tropical 
disease whose spread will be exacerbated by climate change in 
this region. 
 
INDONESIA AS A REGIONAL ANCHOR 
 
¶8.  (SBU) Beyond the Comprehensive Partnership Indonesia is 
the natural leader of Southeast Asia.  The success of 
Indonesia's democratization and reform process and its 
inclusion in the G-20 have given the country new confidence. 
This confidence can help the United States work better with 
Indonesia to achieve our aims in Asia and elsewhere. 
Indonesia sits at the crossroads of transit between East 
Asia, South Asia, and the Middle East and will be critical to 
ensuring balanced and stable relations in the region.  As 
home of the ASEAN Secretariat, Jakarta seeks a greater 
leadership role in ASEAN, and it is succeeding.  GOI 
officials spearheaded efforts to enshrine democracy and human 
rights in the ASEAN Charter.  Indonesia has played an 
important but largely behind-the-scenes role in encouraging 
democracy and human rights in Burma.  President Yudhoyono's 
Bali Democracy Forum, attended by Burma, is meant to lure the 
Burmese regime into learning about the benefits of democracy. 
 
 
A VIBRANT DEMOCRACY 
 
¶9.  (SBU) Indonesian April 9 legislative and July 8 
presidential elections were fair, free, and peaceful.  The 
results of the legislative and presidential elections 
affirmed incumbent President Yudhoyono's reformist policies. 
In April, President Yudhoyono's Partai Demokrat (PD) won a 
plurality in legislative elections, with 20.85 percent of the 
popular vote (and over a quarter of the 560 parliamentary 
seats).  This was followed by Yudhoyono's reelection victory 
in July, in which he captured 60.8 percent of the vote and 28 
of the nation's 33 provinces.  The cabinet for the second 
Yudhoyono administration, which came into office in late 
October, contains a number of technocrats and a larger number 
of political leaders.  This reflects Yudhoyono's belief that 
despite his landslide electoral victory he must build 
political consensus to push through his policies in the 
Parliament. 
 
A VIBRANT ECONOMY 
 
¶10.  (SBU) With estimated GDP growth of over four percent for 
2009, Indonesia is the third-fastest growing economy in the 
G-20.  Indonesians are proud of their transition over little 
more than a decade from an economic basket case during the 
Asian financial crisis to the only Southeast Asian member of 
the G-20, involved in coordinating global responses to the 
current economic crisis.  Although some of Indonesia's 
 
JAKARTA 00001820  003 OF 003 
 
 
responses to the economic crisis have been protectionist, new 
opportunities for U.S. businesses are emerging.  Boeing has a 
huge order book with Indonesian airlines.  General Electric 
and Electro-Motive are competing for a several hundred 
million dollar locomotive deal.  The Export-Import Bank is 
considering infrastructure and clean energy facilities to 
finance U.S. business deals and looking for ways to decrease 
the costs for lending in Indonesia. 
 
OVERCOMING SECURITY THREATS 
 
¶11.  (SBU) The Government of Indonesia's (GOI) response to 
the July 17 terrorist attacks was swift and effective.  While 
the GOI is still pursuing a few remaining associates of 
militant ringleader Noordin Top, the killing of eight July 17 
operatives, including Top, and the arrest of 11 others 
appears to have severely crippled Top's network.  The GOI has 
heightened security nationwide and the INP continues to 
actively combat terrorism.  Until the July 17 bombings, 
Indonesia experienced three-and-a-half years without a major 
terrorist incident, demonstrating how the GOI's 
counterterrorism efforts reduced the ability of militant 
groups in Indonesia to carry out attacks. 
 
¶12.  (SBU) U.S. assistance has been an important component of 
the GOI's success in locating and coordinating 
counterterrorism strikes in the wake of the post-July 17 
bombings.  The Embassy has worked to build the investigative 
support for and forensic capabilities of the Indonesian 
National Police (INP) through numerous developmental programs 
administered by Department of Justice's International 
Criminal Investigative Training and Assistance Program.  The 
Indonesian National Police, including elements of the 
USG-funded Special Detachment-88, have effectively disrupted 
the Jemaah Islamiyah (JI) terrorist network.  The USG-funded 
Attorney General's Task Force on Terrorism and Transnational 
Crime has successfully prosecuted 64 terrorists, including 43 
JI members since 2006, and DOJ enhanced the prosecutorial 
capacity of the task force. 
 
HUME