VZCZCXRO7054
OO RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #1354/01 1970652
ZNR UUUUU ZZH
O 150652Z JUL 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9525
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHINGTON DC PRIORITY
RHHJJPI/USPACOM HONOLULU HI PRIORITY
RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
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RUEHBY/AMEMBASSY CANBERRA 2761
RUEHLM/AMEMBASSY COLOMBO 1122
RUEHKA/AMEMBASSY DHAKA 1081
RUEHMO/AMEMBASSY MOSCOW 0594
RUEHNE/AMEMBASSY NEW DELHI 2000
RUEHUL/AMEMBASSY SEOUL 4732
RUEHKO/AMEMBASSY TOKYO 2217
RUEHWL/AMEMBASSY WELLINGTON 2838
RUEAIIA/CIA WASHDC
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RHEFDIA/DIA WASHINGTON DC

UNCLAS SECTION 01 OF 04 JAKARTA 001354 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR EAP, PM, EAP/MTS, EAP/MLS, EAP/RSP 
SECDEF FOR USDP/ISA/AP P.IPSEN 
NSC FOR E.PHU 
 
E.O. 12958: N/A 
TAGS: PREL MARR ID
SUBJECT: GOI PROPOSES BILATERAL DEFENSE COOPERATION 
AGREEMENT 
 
¶1.  (U) This message is Sensitive but Unclassified -- Please 
handle accordingly. 
 
¶2.  (SBU) SUMMARY:  The Indonesian Department of Foreign 
Affairs (DEPLU) has sent Embassy Jakarta the text of a 
proposed Defense Cooperation Agreement (DCA).  Indonesia is 
in the process of concluding DCAs with its major partners in 
the region.  Indonesian defense officials have raised the 
idea of reaching an agreement with the USG several times in 
bilateral defense discussions over the past year, but the 
Indonesian diplomatic note moves the process further along. 
This message provides the text of the proposed agreement. 
Mission will provide an analysis of the Indonesian proposal 
via septel.  END SUMMARY. 
 
¶3.  (SBU) The proposed DCA consists of ten articles, the 
central one containing a description of areas of cooperation. 
 Essentially, the agreement would formalize existing forms of 
cooperation.  In contrast to a memorandum of understanding, 
the agreement, if adopted, could require ratification by the 
Indonesian legislature (DPR). 
 
¶4.  (SBU) The diplomatic note and draft agreement are 
reproduced below. 
 
¶5.  (SBU) Text of GOI diplomatic note (no. 
D.541/PO/VII/2008/59): 
 
Begin text: 
 
Department of Foreign Affairs of the Republic of Indonesia 
presents its compliments to the Embassy of the United States 
of America and has the honor to convey Indonesian proposed 
draft on the (begin italics) Agreement between the Government 
of the Republic of Indonesia and the Government of the United 
States of America on Cooperative Activities in the Field of 
Defense (end italics) (as attached). 
 
Department of Foreign Affairs of the Republic of Indonesia 
avails itself of this opportunity to renew to the Embassy of 
the United States of America in Jakarta the assurances of its 
highest consideration. 
 
03 July 2008 
 
Embassy of the United States of America 
Jakarta 
 
End text. 
 
¶6.  (SBU) The text of the GOI-proposed DCA follows: 
 
Begin text: 
 
AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA 
AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA ON 
COOPERATIVE ACTIVITIES IN THE FIELD OF DEFENCE 
 
The Government of the Republic of Indonesia and The 
Government of the United States of America, hereinafter 
referred to as the "Parties"; 
 
Desiring to enhance or strengthen mutual trust and 
cooperation in defence and military field; 
 
Acknowledging the existing friendly relations between the two 
countries and their peoples; 
 
Recognizing that the strengthening of defence cooperation 
shall be beneficial to both national defences, particularly 
 
JAKARTA 00001354  002 OF 004 
 
 
to both Armed Forces; 
 
Pursuant to the prevailing laws and regulations of the two 
countries, 
 
Have agreed as follows: 
 
ARTICLE I:  GENERAL PRINCIPLE 
 
The Parties shall strengthen and develop friendly 
relationship and cooperation in the defence field on the 
basis of the principles of mutual respect for each other's 
independence, sovereignty and territorial integrity, 
non-interference in each other's internal affairs, equality, 
mutual benefit and peaceful co-existence as enshrined in the 
United Nations Charter and other universally recognized norms 
of international law. 
 
ARTICLE II:  SCOPE OF COOPERATION 
 
The scope of cooperation of this Agreement shall include: 
 
¶1. Exchange of information on defence establishment and 
matters, including the organization, doctrine and policy. 
 
¶2. Exchange of officers for education and professional 
training, mutual visits and joint research based on the 
principle of reciprocity and mutual consent. 
 
¶3. Exchange of scientific and technological data, experts, 
technicians, trainers, as well as other forms of technical 
cooperation based on the principle of reciprocity and mutual 
consent. 
 
¶4. Promotion of the cooperation between the defence 
technology and industry institutions of the countries for the 
mutual benefit and interest of the Parties, including the 
exchange of technology, technical assistance, training, 
provision of defence equipment and joint production. 
 
¶5. Cooperation in the field of defence exercises, including 
joint military training exercises between the armed forces of 
the two countries. 
 
¶6. Regular bilateral dialogue and consultation on security 
issues of common concern. 
 
ARTICLE III:  IMPLEMENTING ARRANGEMENTS 
 
The Department of Defence of both countries may conclude 
particular implementing arrangements pertaining to specific 
aspects of cooperation within the framework of this Agreement. 
 
ARTICLE IV:  JOINT COMMITTEE 
 
¶1. In order to monitor, manage and implement the Agreement, 
the parties agree to establish the Indonesia-USA Security 
Dialogue as the Joint Committee for cooperation activities in 
the field of defence and the USIBDD in the field of Mil to 
Mil. 
 
¶2. The Joint Committee shall compose of representatives from 
each Party. The number of representatives from each Party 
shall be mutually agreed by the Parties. 
 
¶3. The Joint Committee shall be Co-Chaired by the appropriate 
senior officials from the Department of Defence of the both 
states. 
 
¶4. The Tasks of the Joint Committee are as follows: 
 
JAKARTA 00001354  003 OF 004 
 
 
 
a. To recommend and initiate the cooperative activities; 
b. To organize and implement the approved activities; 
c. To coordinate, monitor and control the approved activities; 
d. To resolve problems arising out of the implementation of 
the cooperative activities; 
e. To submit a joint report of the meeting to their 
respective Defence Ministers. 
 
¶5. The Joint Committee may establish sub-committees to 
effectively address specific projects of mutual interest. 
 
¶6. The Joint Committee shall also in principle hold a 
USA-Indonesia Defence and Security Dialogue at least once a 
year, alternately in each country. 
 
¶7. The date, venue and agenda of such Dialogue shall be 
agreed upon by the Co-Chairpersons. 
 
ARTICLE V:  INTELLECTUAL PROPERTY RIGHTS 
 
In accordance with the legislation of their states, the 
Parties shall provide efficient protection and distribution 
of intellectual property rights, including its ownership and 
legal use, which are being transferred or created in 
accordance with this Memorandum of Understanding. The issues 
of protection and distribution of intellectual property 
rights including protection of a third party's legitimate 
rights, taking into full consideration the equitable portion 
of ownership based on the contribution of the respective 
participants, shall be regulated by the Arrangements 
concluded by organizations of the Parties on specific areas 
of cooperation. 
 
ARTICLE VI:  CONFIDENTIALITY 
 
¶1. The Parties shall protect the classified information to 
which they may have access within the framework of this 
Agreement in accordance with both national laws and 
regulations. 
 
¶2. The classified information and equipment shall only be 
provided through official channels agreed upon by Co-Chairs 
of the Joint Committee. These information and equipment are 
to be labelled with the indication of their classification 
level and Country of Origin as follows: 
 
INDONESIAN             ENGLISH 
SANGAT RAHASIA         TOP SE CRET 
RAHASIA                SEC RET 
TERBATAS/KONFIDENSIAL  CONFIDENTIAL 
BIASA                  UNCLASSIFIED 
 
¶3. All information and equipment received in the framework of 
this Agreement shall not be transferred, disclosed or 
released, either directly or indirectly, on temporary or 
permanent basis, to third parties, whether persons and 
entities, without the prior written consent of the 
originating Party. 
 
ARTICLE VII: FUNDING 
 
¶1. This Agreement shall be implemented in accordance with the 
budgetary allocation of each Party. 
 
¶2. The budgetary allocation of each Party shall be defined in 
the implementing arrangement. 
 
ARTICLE VIII:  SETTLEMENT OF DISPUTES 
 
 
JAKARTA 00001354  004 OF 004 
 
 
¶1. Any matter arising from this Agreement with respect to its 
interpretation or implementation shall, in the first 
instance, be submitted to the Joint Committee for amicable 
settlement. 
 
¶2. In the event that the matter is not settled under 
paragraph 1, both Co-Chairs of the Joint Committee shall 
bring the matter to their respective Ministers of Defence for 
amicable settlement. 
 
¶3. In the event that the matter is not settled under 
paragraph 2, it shall be settled by the Parties through 
diplomatic channel. 
 
ARTICLE IX:  AMENDMENTS 
 
¶1. This agreement may be amended or revised at any time in 
writing my mutual consent of the Parties. 
 
¶2. Such amendment shall enter into force on the date as may 
be mutually agreed upon by the Parties and shall form part of 
this Agreement. 
 
¶3. Any amendment shall not affect the right and obligations 
arising or based on this Agreement or any arrangement entered 
into under this Agreement before or up to the date such 
amendment enters into force. 
 
ARTICLE:  X ENTRY INTO FORCE, VALIDITY AND TERMINATION 
 
¶1. This Agreement shall enter into force on the date of last 
notification on which the Parties have informed each other, 
through diplomatic channels, of compliance with the legal 
requirements necessary for the entry into force of this 
Memorandum of Understanding. 
 
¶2. This Agreement shall remain in force for a period of five 
(5) years and upon the expiry thereof may be renewed for 
another five (5) years unless it is renounced by either Party 
by signing written notice to the other at least ninety (90) 
days prior to its intention to terminate this Agreement. 
 
¶3. The termination of this Agreement shall not affect the 
validity and duration of any activities concluded within the 
framework of this Agreement. 
 
In Witness Whereof the undersigned, being duly authorized 
thereto by their respective Governments, have signed this 
Agreement. 
 
Done in .......... on .......... in two originals, in 
Indonesian and English languages, all text are being equally 
authentic. In case of divergence of interpretation, the 
English text shall prevail. 
 
FOR THE GOVERNMENT OF 
THE REPUBLIC OF INDONESIA 
............................ 
 
FOR THE GOVERNMENT OF 
THE UNITED STATES OF AMERICA 
............................ 
 
End text. 
 
 
HUME