VZCZCXRO4414
OO RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #2058/01 3111006
ZNR UUUUU ZZH
O 061006Z NOV 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0564
RUEHLMC/MILLENNIUM CHALLENGE CORP PRIORITY 0097
RHEHNSC/NSC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHMFISS/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS PRIORITY
RUEHBJ/AMEMBASSY BEIJING PRIORITY 5583
RUEHNE/AMEMBASSY NEW DELHI PRIORITY 2395

UNCLAS SECTION 01 OF 03 JAKARTA 002058 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR E, EAP, EEB, OES 
STATE PASS TO USAID FOR ANE AND EGAT 
STATE PASS TO USTR 
TREASURY FOR U/S MCCORMICK, M. NUGENT, T. RAND 
COMMERCE PASS TO NOAA 
SINGAPORE FOR S. BAKER 
 
E.O. 12958: N/A 
TAGS: ECON EFIN SENV ENRG KMCA PGOV PREL MCC ID
SUBJECT: DISCUSSING NOVEMBER 15 SUMMIT WITH PRESIDENT 
YUDHOYONO 
 
JAKARTA 00002058  001.2 OF 003 
 
 
¶1. (SBU) SUMMARY:  President Yudhoyono (SBY) wants Indonesia 
to be part of the solution at the upcoming Summit on 
Financial Markets and the World Economy.  At SBY's request, 
Ambassador Hume briefed him on summit preparations in a 
meeting on November 5.  SBY welcomed the G-20 Leaders format 
and stressed his commitment to working together to stabilize 
capital markets and restore confidence.  He wants to keep the 
real economy moving by maintaining open markets and promoting 
regional and global trade and investment.  He noted leaders 
must consider changes to the existing financial architecture 
to help prevent the recurrence of another serious financial 
crisis.  SBY also welcomed Ambassador's delivery of 
Indonesia's Millennium Challenge Corporation 2009 Scorecard. 
He conveyed his congratulations to the American people on the 
election, remarking on the many lessons he had learned from 
American democracy and his hope Indonesian people would learn 
lessons on unity from the U.S. elections.  SBY and Ambassador 
Hume discussed environmental-related opportunities for SBY's 
upcoming trip to Washington.  Regarding difficulties 
encountered by ExxonMobil in Indonesia, SBY said he would 
task Minister of Energy and Mineral Resources Purnomo 
Yusgiantoro to meet with the President of ExxonMobil.  END 
SUMMARY. 
 
SBY ENGAGED AND FOCUSED ON FINANCIAL MARKETS SUMMIT 
- - - - - - - - - - - - - - - - - - - - - - - - - - 
 
¶2. (SBU) On November 5, at President Yudhoyono's request, 
Ambassador Hume briefed on summit preparations and 
objectives.  Ambassador Hume said he was pleased the summit 
included the G-20 group given the global impact of current 
financial markets volatility.  Indonesia's inclusion in the 
summit is a testament to the transformation it has achieved 
in the past decade, both of its system of government and of 
its economy.  Ten years ago, the world viewed Indonesia 
through the lens of the famous image of IMF Managing Director 
Camdessus standing over former President Soeharto as he 
agreed to an IMF bailout of a collapsed economy.  Today, 
Indonesia is a democratic country showing real leadership and 
taking serious decisions in tackling the challenges posed by 
the current crisis.  It is a reflection of a changed reality 
that Indonesia will now take a seat at the table of global 
leaders gathering to address the causes of the current global 
economic crisis, actions taken in response and core 
principles for reform.  Indonesia has become a full partner 
in this process, which is a tribute to the changes the 
Indonesian people have worked so hard to achieve. 
 
¶3. (SBU) Members of the G-20, including Indonesia, would be 
well placed to address how the crisis is affecting developing 
countries, including on issues such as trade finance. 
Ambassador Hume said the summit was an opportunity for 
leaders to reiterate their commitments to open markets, 
acknowledge the critical roles of international financial 
institutions (IFIs) in assisting affected countries, and 
reaffirm development assistance commitments.  He noted 
leaders would task Finance Ministers and IFIs with developing 
recommendations for further action, and that there were no 
current plans for bilateral meetings on the margins of the 
summit. 
 
¶4. (SBU) SBY said the summit objectives were right and 
welcomed the G-20 leaders format.  SBY said participation of 
both developed and developing countries was important and 
Indonesia is committed to being part of the solution to the 
current financial markets crisis.  President Yudhoyono 
expressed appreciation that summit timing facilitated his 
APEC Summit participation.  He advised he plans to arrive 
Washington on the evening of November 13, and will also visit 
Mexico and Brazil. 
 
¶5. (SBU) SBY commented that during the recent ASEM Summit, 
leaders appeared committed to making the Washington summit a 
success.  He had stressed in his statement Indonesia's desire 
to coordinate efforts to stabilize and restore confidence in 
 
JAKARTA 00002058  002.2 OF 003 
 
 
capital markets.  In his view, efforts were moving well on 
this.  He had also highlighted Indonesia's commitment to 
ensuring that the real economy continues to advance.  This 
required avoiding protectionism, maintaining open markets and 
continuing to promote both regional and global trade and 
investment.  Finally, he had noted in his statement that 
leaders will need to consider possible changes to the 
existing international financial architecture to help prevent 
recurrence of another financial crisis and to ensure that the 
architecture is fair to everyone. 
 
¶6. (SBU) SBY briefed on his continued close cooperation with 
Bank Indonesia, government ministries and the private sector 
to take actions aimed at avoiding a crisis of confidence.  He 
outlined a number of policy responses taken, including 
establishing a new Financial System Safety Net and increasing 
deposit insurance guarantees.  The Indonesian government 
continued to monitor closely the policy responses of ASEAN 
and others. 
 
MCC 2009 SCORECARD:  "MOTIVATES ME TO DO MORE" 
- - - - - - - - - - - - - - - - - - - - - - - 
 
¶7. (SBU)  President Yudhoyono was pleased when the Ambassador 
delivered Indonesia's MCC 2009 Scorecard, particularly when 
Ambassador Hume pointed out the significant improveme nt in 
Indnesia's anti-corruption indicator. Five years ago, 
Indonesia ranked in the  11th percentile on contrl of 
corruption, but now had reached the 56th pecentile.  SBY 
said he wants a clean government an has been working hard to 
achieve it.  The positve feedback the scorecard provided 
"motivates meto do more," he said.  Amb"assador Hume briefed 
SY on the MCC process and advised him that Indonesi was on 
the MCC Board's short list for consideraton as an MCC 
Compact eligible country when the Bard meets in December. 
Pointing to Indonesia's srong performance on its sc"orecard, 
he voiced suport for Indonesia to be named Compact eligible. 
SBY thanked Ambassador Hume for the briefing and alo 
thanked him for his recent op-ed piece on Indoesia's 
response to the financial crisis and its ontinuing reform 
efforts. 
 
U.S. ELECTIONS:  COGRATULATIONS TO AMERICAN PEOPLE 
AND LESSONS TO LARN FROM AMERICAN DEMOCRACY 
- - - - - - - - - - -- - - - - - - - - - - - 
 
¶8. (SBU) President Yudhyono expressed congratulations to the 
American pople and to President-elect Obama.  He said he had 
made a public statement of congratulations to th Indonesian 
press immediately prior to the meetin.  He had seen both 
candidates' speeches and beleved President-elect Obama's 
speech would help t promote good relatio*ns and enhance 
bilateral cooperation.  He also noted hhe President-elect's 
special relationship with Indonesia.  Ambassador Hume thanked 
President Yudhoyono for his expression of congratulations and 
commented that he felt lucky to be an American.  The gracious 
speeches by both President-elect Obama and Senator McCain 
were good lessons on U.S. democracy.  SBY agreed, noting that 
Senator McCain's speech had impressed him, as had Senator 
Clinton's support for candidate Obama after a hard-fought 
primary.  SBY hoped the Indonesian people would learn lessons 
from America about how to unite following elections. 
 
OPPORTUNITIES FOR ENVIRONMENTAL ENGAGEMENT 
- - - - - - - - - - - - - - - - - - - - - 
 
¶9. (SBU) Ambassador Hume also briefed SBY on various 
environment-related opportunities related to the May 2009 
World Oceans Conference, hosted by Indonesia.  Ambassador 
noted U.S. government support of $32 million for the Coral 
Triangle Initiative (CTI), an initiative conceived by SBY. 
He advised that he was working to secure approval for NOAA's 
most modern research vessel, Okeanos Explorer, to make its 
maiden voyage to Indonesia at that time as a way to gain 
maximum public attention to this important initiative.  He 
 
JAKARTA 00002058  003.2 OF 003 
 
 
noted that the Smithsonian, several non-governmental 
organizations and NOAA were all interested in CTI and 
suggested that the Indonesian Embassy work with these groups 
to organize an event while SBY was in Washington.  Ambassador 
Hume noted that it was good for Indonesia's leadership on the 
environment to be recognized.  SBY then tasked Foreign 
Minister Wirayuda to instruct the Indonesian Embassy to 
synchronize an event at the Smithsonian with his schedule, 
which he noted would include a speech at USINDO on November 
¶14. 
 
¶10. (SBU) SBY said ASEM Summit participants in Beijing had 
discussed the environment and climate change.  He felt that 
all leaders present were committed to making the Copenhagen 
Climate Change Conference succeed.  Statements by Chinese and 
Indian leaders had been positive.  Although many issues 
remained to be settled following adoption of the Bali Roadmap 
in December 2007, SBY expressed his hope that a post-2012 
protocol could be reached.  Focus needed to remain on 
mitigation, adaptation and on a financing structure, and 
"both developed and developing countries must do more," he 
said. 
 
EXXONMOBIL:  CONVEYING MESSAGE ON DESIRE FOR TALKS 
- - - - - - - - - - - - - - - - - - - - - - - - - 
 
¶11. (SBU) At ExxonMobil's request, Ambassador conveyed 
ExxonMobil's interest it talking to the government of 
Indonesia regarding difficulties the company was encountering 
in new production.  The Ambassador noted that, as long-term 
partners, Indonesia and ExxonMobil had an opportunity to 
engage in a way which could increase investor confidence. 
SBY noted that Indonesia needs significant cooperation 
involving many partners in exploring and developing its South 
China Sea resources.  (Note: ExxonMobil's continued operation 
of the Natuna Block D Alpha concession is currently in 
question.  End note)  He advised that he would task Minister 
of Energy and Mineral Resources Purnomo Yusgiantoro, who 
would accompany him on his upcoming travel to the U.S. and 
Brazil, with contacting ExxonMobil's president. 
 
 
HUME