O 171328Z JAN 06
FM AMEMBASSY JAKARTA
TO SECSTATE WASHDC IMMEDIATE 7990
INFO USCINCPAC HONOLULU HI IMMEDIATE
SECDEF WASHDC IMMEDIATE
NSC WASHDC IMMEDIATE
ASSOCIATION OF SOUTHEAST ASIAN NATIONS
AMEMBASSY CANBERRA

C O N F I D E N T I A L  JAKARTA 000616 
 
 
E.O. 12958: DECL: 01/17/2016 
TAGS: PREL MARR EPET PGOV PTER PHUM
SUBJECT: AMBASSADOR MEETS WITH PRESIDENT YUDHOYONO 
 
REF: JAKARTA 0615 
 
Classified By: Ambassador B. Lynn Pascoe, Reasons 1.4 (b) and (d) 
 
Summary 
------- 
 
¶1.  (C) President Yudhoyono (SBY) told the Ambassador, 
January 16, of an increased need for regional 
counterterrorism cooperation, notably in the region of 
Sabah/East Kalimantan, and that he would welcome U.S. 
assistance to this end.  He asked the Ambassador to work with 
the Defense Minister and Air Marshall Djoko Suyanto (named 
that day as the next TNI chief) on building bilateral 
military-to-military relations and reforming the TNI.  SBY 
wants significant amounts of U.S. military training, exposing 
TNI personnel to democratic ideals and concepts of 
international cooperation.  He assured the Ambassador of the 
importance of the Indonesia-East Timor Commission on Truth 
and Friendship continuing to work, and had so told East 
Timorese President Gusmao after the recent border shooting 
incident in which three Indonesians died.  He promised to 
provide views on how the commission could acquire a more 
international component.  SBY said he had ordered the 
relevant ministries and national oil company Pertamina to 
close on the Cepu oil field agreement with Exxon-Mobil, and 
he promised major changes at Pertamina.  End Summary 
 
Counterterrorism:  More Regional Cooperation Needed 
--------------------------------------------- ------ 
 
¶2. (C) Following the call of Mrs. Patsy Spier on President 
Yudhoyono (SBY) Jan. 16 (reftel), the Ambassador reviewed 
with SBY the major advances made in bilateral relations over 
the last year and sought his views on priorities for the 
coming year.  SBY said he had recently discussed with 
Malaysian Prime Minister Badawi the need for increased CT 
cooperation between Malaysia, Indonesia and the Philippines. 
SBY sees the triangle near Sabah/East Kalimatan/Mindanao as a 
major problem area that needs more work.  He said Badawi 
agreed, and the two countries would look to create a task 
force to enhance cooperation.  SBY said he spoke with 
President Arroyo about the same issue when they last met in 
Bangkok.  SBY affirmed that he would welcome U.S. assistance 
in this area.  The Ambassador noted that Embassy Jakarta will 
host a meeting of regional U.S. Ambassadors and Washington 
representatives to discuss ways for us to help enhance 
regional CT cooperation. 
 
Mil/Mil:  Expose TNI Forces to Democratic Ideals 
--------------------------------------------- --- 
 
¶3.  (C) The Ambassador reviewed our approach to enhance 
military-to-military cooperation, and sought SBY's views on 
how the two countries might further develop relations in this 
area.  He noted the U.S. plans to focus on helping Indonesia 
enhance its disaster preparedness, maritime security and 
systemic reform, but wants to ensure that our proposed agenda 
matches SBY's.  The President responded that he sees his top 
national priorities as good governance and reconstructing the 
economy, and would like mil/mil relations to develop properly 
as well.  He had forwarded to Parliament that day the name of 
Air Marshall Djoko Suyanto to serve as the new head of the 
armed forces (TNI), calling him a good man.  He told the 
Ambassador he would task the Defense Minister and Suyanto to 
work closely with us on military reform and modernization. 
SBY said that he considered as important training that 
exposes TNI personnel to democratic ideals and fosters the 
concept of regional and international cooperation, all issues 
key to his education in the U.S. 
 
Commission on Truth and Friendship to Continue Forward 
--------------------------------------------- --------- 
 
¶4.  (C) The Ambassador reminded SBY of the importance of the 
Commission on Truth and Friendship succeeding in its mission 
to U.S. support of TNI reform.  He briefed SBY on the 
willingness of the Carter Center to play a role in assisting 
the commission.  SBY responded that the recent border 
incident resulting in the death of three Indonesians would 
not prevent the commission from continuing its work, and that 
he had so told East Timor President Xanana Gusmao during a 
recent phone conversation.  SBY described Gusmao as afraid 
the incident would end the CTF.  SBY said the work of the CTF 
is more important than a single border incident.  He added 
the commission's work needs more publicity and that it must 
accelerate the pace of its activities.  He would continue to 
examine which international groups might usefully contribute 
to the CTF's work, citing the possible inclusion of 
Australians as well as Americans and others.  SBY promised to 
get back to the Ambassador on a role for the Carter Center. 
 
Cepu:  SBY Wants a Rapid Agreement 
---------------------------------- 
 
¶5.  (C) Moving to economic issues, the Ambassador noted that 
the U.S. hoped to continue finding ways to support his goal 
of good governance.  The USG already funds many programs with 
that in mind and could assist in others.  The Ambassador 
noted that the U.S.-ASEAN Business Council has come to town 
and has asked about progress on the prospective agreement on 
the Cepu oil field with Exxon-Mobil.  SBY responded that last 
week he instructed the Energy and State-Owned Enterprises 
Ministries and national oil company Pertamina to solve the 
issue "within a week."  SBY asserted that he wants major 
changes to Pertamina, including a new leadership, "fair" 
audits, and a new relationship with the government.  A fight 
over distribution of 10 percent of the proceeds of the 
prospective Cepu agreement to the provinces of West and 
Central Java had been resolved.  The Ambassador noted that 
Exxon-Mobil had offered a quite generous approach for an 
"integrated leadership" and that any settlement that put 
Pertamina rather than Exxon-Mobil in the lead would allow 
Pertamina to follow its old ways with no positive movement 
forward. 
 
 
PASCOE