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FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7335
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RUEKJCS/JOINT STAFF WASHINGTON DC PRIORITY
RHHJJPI/USPACOM HONOLULU HI PRIORITY
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RUEHIN/AIT TAIPEI 1991
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC

C O N F I D E N T I A L SECTION 01 OF 03 JAKARTA 003358 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EAP, EAP/MTS, EAP/MLS, EAP/RSP 
NSC FOR E.PHU 
SECDEF FOR USDP/ISA/AP CLAD/TOOLAN/IPSEN 
 
E.O. 12958: DECL: 12/10/2017 
TAGS: PREL MARR PGOV ID IN CH XE
SUBJECT: DEFENSE COOPERATION -- DASD CLAD'S MEETING WITH 
MINDEF SUDARSONO 
 
REF: JAKARTA 3155 
 
Classified By: DCM John A. Heffern, reasons 1.4 (b,d). 
 
¶1. (C) SUMMARY:  DASD Clad discussed U.S.-Indonesia mil-mil 
cooperation and East Asian regional security with MinDef 
Sudarsono on December 5.  Sudarsono said Indonesia wanted an 
effective but low-visibility security relationship with the 
United States.  He said the GOI was focusing its air 
capacity-building on lift and interception, and was 
considering purchasing additional new F-16 fighters.  Clad 
said Washington would support such a sale and wanted to make 
the mil-mil relationship stable and substantive.  The two 
also discussed China and Taiwan as regional stability issues, 
and bilateral cooperation with India.  END SUMMARY. 
 
MEETING WITH MINDEF 
 
¶2. (C) In his December 5 meeting with Indonesian Defense 
Minister Juwono Sudarsono, Deputy Assistant Secretary of 
Defense for South and Southeast Asia James Clad conveyed 
greetings from SecDef Gates, who hoped to visit Indonesia 
early in 2008.  The USG looked forward to a full, serious 
agenda for the next meeting of the U.S.-Indonesia Strategic 
Dialogue (IUSSD) in Washington in April. 
 
¶3. (C) Clad said the United States wanted to make the 
mil-to-mil relationship more routine, as should be the case 
now that sanctions had been lifted.  Both sides should work 
to make the relationship normal, stable and based on 
substantive cooperation.  It was important to create the 
momentum that would make it difficult for differences on 
other issues to "pull the relationship back."  Sudarsono said 
Indonesia sought to maintain a balance in its security 
relationships.  In accordance with Indonesia's non-aligned 
orientation, Indonesia was working with all of its neighbors, 
including ASEAN, Australia, China, Russia, Japan and Korea. 
With the United States, Indonesia wanted an effective 
relationship but one with low visibility.  Clad said the 
United States accepted and respected Indonesia's non-aligned 
stance. 
 
AIR CAPABILITY NEEDS 
 
¶4. (C) The Indonesian Navy and Air Force were especially in 
need of new technology, including surface ships, transport 
and aircraft, according to Sudarsono.  Indonesia did not 
intend to develop a strike force at this time.  Indonesia had 
to look also to other countries because of the legacy of the 
U.S. embargo in the 1990s.  Current conditions made such an 
embargo unlikely to happen again, but residual concerns 
remained.  Clad said Washington understood that sentiment, 
but also believed that the corner had been turned and that 
the relationship was moving forward in a positive direction. 
 
¶5. (C) Indonesian procurement was focused on building a dual 
capacity, i.e., equipment which could also be used for 
disaster relief and humanitarian assistance as well, 
Sudarsono said, given the Indonesian military's extensive 
involvement in such operations.  In addition to military 
equipment, relief equipment such as field hospitals, tents 
and so forth were welcome.  Clad underscored that the United 
States wanted to help Indonesia build its air capability and 
said the U.S. Pacific Command (PACOM) fully shared the 
emphasis on dual capacity. 
 
F-16 INTEREST CONFIRMED 
 
¶6. (C) Clad noted that Indonesia had reportedly submitted a 
request for price and availability data on U.S. F-16 fighters 
(reftel).  He said the United States was in the process of 
accelerating the refurbishment of C-130s.  Sudarsono 
confirmed Indonesia's interest in acquiring additional F-16s 
and Clad's assessment that Indonesia's current air needs were 
primarily lift and interception, noting that 65 percent of 
 
JAKARTA 00003358  002 OF 003 
 
 
the procurement budget went to airlift and that Indonesia was 
planning to purchase additional refurbished F-16s through 
Foreign Military Sales (FMS).  (Note:  In a luncheon 
discussion at the DCM's with defense officials and observers, 
MinDef Economic Adviser Adnan Ganto told Clad that Russia had 
yet to set a price for the Sukhoi fighters that Indonesia was 
considering purchasing under the $1 billion credit package 
that Moscow had offered to Indonesia.  Retired Air Vice 
Marshal Koesnadi Kardi, formerly Director of Training and 
Education at the Department of Defense, said only two of 
Indonesia's four Sukhois were currently airworthy.) 
 
1206 FUNDING 
 
¶7. (C) Clad and DATT summarized current difficulties with the 
Indonesian Navy regarding procurement of land for 
construction of radar stations in Sumatra and Sulawesi under 
Section 1206 funding for FY06 and FY07.  They underscored 
that Indonesia was in danger of losing the U.S. assistance if 
sites were not found soon.  Sudarsono explained that the 
Indonesian Navy needed money to certify the land and that 
specific funding had not been budgeted for these projects. 
He acknowledged the need for action and said he would discuss 
the matter with the Minister of Finance. 
 
BILATERAL COOPERATION ACTIVITIES 
 
¶8. (C) DATT noted other upcoming expected U.S. visits, which 
included PACOM J5 in February for the Defense Dialogue in 
February (in Jakarta) and PACOM Commander Keating in April. 
Reviewing current bilateral military-to-military cooperation, 
DATT said engagement had grown exponentially and now embraced 
140 separate activities annually at all levels and 44 
participants in the International Military Education and 
Training (IMET) program in 2007. 
 
CHINA VISIT 
 
¶9. (C) Asked about his recent visit to Beijing, Sudarsono 
noted that the visit had occurred on the heels of SecDef 
Gates' visit to Beijing.  China wanted to assist Indonesia in 
developing defense technology.  During the visit, Indonesia 
had signed a memorandum of understanding on bilateral 
technical cooperation. 
 
¶10. (C) Sudarsono said China realized that it needed the 
presence of the United States in the region as a check 
against Japan.  However, Japan's voice in the region had 
become weaker in recent years.  He agreed with Clad's 
observation that it was better that Japan remain involved in 
Southeast Asia.  Noting that a previous DIA briefing on China 
to an Indonesian audience had been very well received, Clad 
offered to provide a further briefing on the next annual 
report. 
 
TAIWAN -- ISSUE OF CONCERN 
 
¶11. (C) Sudarsono said Indonesia was "very concerned" about 
the issue of Taiwan, which had been mentioned at least twenty 
times in the most recent Chinese Communist Party congress. 
Tensions across the Strait of Taiwan were "a dangerous 
issue."  China's claims to the Spratley Islands in the South 
China Sea were also a concern, although Indonesian interests 
were not directly threatened. 
 
¶12. (C) Agreeing with Sudarsono's assessment of the Taiwan 
issue, Clad commented that a key U.S. concern was the 
possibility of a miscalculation by either party.  Both sides 
were prone to missteps, which could trigger a confrontation. 
Sudarsono said cross-strait tensions depended very much on 
events in Taiwan and that it was very difficult to control 
the political situation in Taiwan.  There was much resentment 
against China in Taiwan over China's meddling in Taiwan's 
affairs. 
 
 
JAKARTA 00003358  003 OF 003 
 
 
¶13. (C) Sudarsono noted that Indonesia had a trade office in 
Taiwan but no political representation.  China had reacted 
strongly to transit visits by Taiwan President Chen Shui Bien 
in Bali and more recently in Batam.  Although that incident 
had occurred five months earlier, China had made an issue of 
it during Sudarsono's recent visit to Beijing, warning 
against any further "unexpected" Taiwan visitors.  Clad said 
China had similarly objected to having been excluded, as 
China saw it, from recent meetings among Australia, India, 
Japan and the United States on regional security issues. 
 
INDIA -- MIL-MIL IN PROCESS 
 
¶14. (C) Sudarsono said Indonesian cooperation with India was 
growing, but that the relationship still needed some 
"fleshing out."  Indonesia was able to use some Indian 
military equipment and India had a good maintenance system 
for Russian-made equipment, Sudarsono related. 
 
ON ENGAGEMENT 
 
¶15. (C) In a separate luncheon discussion with Indonesian 
defense officials and observers (which did not involve 
Sudarsono), Presidential Adviser Gen. (ret) Agus Wijojo urged 
Washington to consider whether sanctions or engagement was 
the more effective strategy for helping Indonesia to move 
forward.  Sanctions often tended to penalize the reformers, 
sent a negative message and restricted cooperation. 
Engagement sent a positive message and empowered cooperation. 
 Wijojo cited Clausewitz' dictum that "if you surround the 
enemy, he will fight to the death, but if you give him some 
room to maneuver, he has an incentive to cooperate." 
 
¶16.  (C) Wijojo added that, despite continued sensitivity 
about the United States as a "reliable" supplier, Indonesia's 
defense procurement had to be done systematically and that ad 
hoc purchases of different systems from various countries 
would not yield effective capabilities.  The United States 
needed to consider how it might position itself to become 
once again the mainstay of Indonesian defense capabilities. 
 
¶17. (U) DASD Clad did not have the opportunity to clear this 
message. 
 
HUME