VZCZCXRO8238
OO RUEHDT RUEHPB
DE RUEHJA #2279/01 3520928
ZNR UUUUU ZZH
O 170928Z DEC 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0998
INFO RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE PRIORITY
RUEHCN/AMCONSUL CHENGDU 0002
RUEHCHI/AMCONSUL CHIANG MAI 0029
RUEHHM/AMCONSUL HO CHI MINH CITY 0238
RUEHHK/AMCONSUL HONG KONG 3174
RUEHPT/AMCONSUL PERTH 1348
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC
RHHJJPI/USPACOM HONOLULU HI
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 03 JAKARTA 002279 
 
SIPDIS 
 
FROM AMBASSADOR HUME TO S, D, P, E, G 
DEPARTMENT PLEASE PASS TO TRANSITION TEAM 
STATE FOR USAID ADMINISTRATOR FORE 
STATE PASS TO PEACE CORPS DIRECTOR TSCHETTER, OPIC 
PRESIDENT MOSBACHER, USTR FOR AUSTR WEISEL, EXIM FOR VP 
MORIN 
 
E.O. 12958: N/A 
TAGS: PREL PGOV KDEM EFIN SENV ID
SUBJECT: A RARE MOMENT TO ADVANCE U.S. INTERESTS IN 
INDONESIA 
 
REF: JAKARTA 2197 
 
JAKARTA 00002279  001.2 OF 003 
 
 
¶1.  This message is Sensitive But Unclassified; please handle 
accordingly. 
 
¶2. (SBU) SUMMARY:  2009 presents a moment of opportunity to 
advance U.S.-Indonesian relations, with a creative smart 
power approach.  This message describes that opportunity and 
outlines how we can develop a strong 21st century partnership 
between these two large and diverse democracies.  We can use 
a strategic partnership to advance U.S. interests in 
fostering democracy, ensuring regional security, combating 
climate change, and promoting education.  Although the 
current financial crisis and Indonesia's upcoming elections 
will bring new pressures here, a strategic partnership with 
the U.S. can add important elements of stability and 
self-confidence for Indonesia.  A smart power strategy could 
transform Indonesia into a regional leader that helps the 
United States accomplish its goals in Southeast Asia and the 
Muslim world.  Mission requests authorization to respond 
positively to President Yudhoyono,s November 14 suggestion 
that the two countries form a strategic partnership and 
guidance for launching discussions with Indonesia on the 
elements of such a partnership. END SUMMARY. 
 
WHY INDONESIA? 
 
¶3. (SBU) President Yudhoyono's invitation to form a strategic 
partnership is an opportunity for the United States to 
promote its interests bilaterally, regionally, and 
internationally.  Indonesia is now the world,s third largest 
democracy, a country that turned back the threat of 
terrorism, and the cornerstone of non-Confucian Asia. 
Bilaterally, the termination of the travel warning on 
Indonesia and the decision of the MCC board to approve 
Indonesia for compact status have proven the success of our 
counter-terrorism, law enforcement, and government reform 
cooperation here.  We can--and should--do more in these 
areas.  Regionally, developing a Southeast Asia policy 
without Indonesia at the center would be like negotiating 
with the European Union without consulting Germany, France, 
the United Kingdom and Poland combined.  With 45 percent of 
ASEAN,s population, Indonesian leadership is crucial for the 
region situated between China, India and Japan. 
Internationally, President Bush's invitation to President 
Yudhoyono to join the G-20 summit confirmed that Indonesia 
has arrived as a global player.  Indonesia is the world's 
most populous Muslim majority country, and is ranked, by 
Freedom House, as the freest country in Southeast Asia.  If 
the United States wants deeper dialogue with the Muslim world 
on managing the challenges of the 21st century, that dialogue 
should start with Indonesia.  Why not start with a democracy? 
 
WHY NOW? 
 
¶4.  (SBU) The world economic crisis helps create this 
opportunity. Increased diplomatic efforts aimed at crisis 
management and institutional reforms have boosted our 
bilateral relations.  Longstanding issues are nearing 
completion: negotiation of a Tropical Forest Conservation Act 
arrangement; signing of a new Fulbright MOU plus the 
possibility of an additional agreement on Indonesian funding 
for scholarships for study in the U.S.; resolution of a major 
copyright lawsuit regarding Intel; dismissal of a malicious 
Avian Influenza lawsuit against the USG; conclusion of an 
agreement on defense cooperation; signature of the already 
completed Bio-Security Engagement Program agreement; and, 
authorization to purchase land for a new chancery.  On the 
horizon are negotiation of a bilateral Science and Technology 
Agreement and a possible material transfer agreement that 
will lead to resumption of sharing of avian flu samples.  In 
addition to rising economic strains, Indonesia faces 
parliamentary elections in April and a presidential election 
a few months later.  Early action to build a strategic 
partnership would pay further dividends economically and 
 
JAKARTA 00002279  002.2 OF 003 
 
 
politically. 
 
REGIONAL PROMOTION OF DEMOCRACY 
 
¶5.  (SBU) The first element in a strategic partnership should 
be promoting democracy.  As a result of Indonesia's 
remarkable democratic transformation, almost 250 million more 
people live in a democracy now than just ten years ago.  The 
recent positive decision by the MCC board has made it 
possible to negotiate a major, multi-year program to boost 
Indonesia's decentralization and good governance reforms. 
Indonesia is already promoting democracy regionally through 
the Bali Democracy Forum (BDF).  Speaking at the BDF, Foreign 
Minister Wirajuda challenged Malaysia's and Singapore's 
invocation of "Asian values" by responding that Indonesia 
organized the Bali conference to reflect universal values of 
democracy and human rights.  President Yudhoyono, bilaterally 
and through ASEAN, has urged Burma to undertake democratic 
reforms.  Through a partnership with Indonesia, we can boost 
Indonesia's effort to promote democracy regionally and 
beyond.  Indonesia's size and democratic system make it the 
one country able to lead in promoting democracy throughout 
the region. 
 
REGIONAL SECURITY AND DEFEATING TERRORISM 
 
¶6.  (SBU) Spanning the region between East Asia and the 
Indian sub-continent and between the Pacific and Indian 
Oceans, Indonesia is critical to stability in Southeast Asia. 
 With tacit United States' support and encouragement, only 
Indonesia, with nearly half of ASEAN's population, can lead 
ASEAN to fulfill its goals for regional security.   We should 
sign the Treaty of Amity and Cooperation (TAC) in order to 
play a greater role engaging ASEAN and participating in 
ASEAN-centered regional institutions.  Expanded security 
cooperation with both the police and the military is at the 
core of our new bilateral relationship.  Indonesian police 
are overcoming the threat of terrorist attacks, without 
sacrificing human rights, and the maritime police and Navy 
are successfully combating piracy in the Straits of Malacca 
through which transits over one-third of global trade.  We 
should complete the restoration of relations with all parts 
of the Indonesian military and police based on their progress 
in reform.  The goal should be a more professional military 
and police, operating within the rule of law at home and 
contributing to regional security and peacekeeping 
operations. 
 
CLIMATE CHANGE 
 
¶7.  (SBU) The U.S. and Indonesia are environmental 
superpowers who must cooperate to save our planet in peril. 
Indonesia is first in the world in marine biological 
diversity and second in land biological diversity, but is 
also the world's third largest carbon dioxide emitter.  We 
should explore how to partner with Indonesia in multilateral 
negotiations for a post-Kyoto framework.  President Yudhoyono 
has said Indonesia would make binding commitments on the 
reduction of emissions in return for incentives to avoid 
deforestation.  Bilaterally we can work to secure such a 
commitment; regionally we can make decisions to preserve 
forests and to strengthen the Coral Triangle Initiative; and, 
internationally, we could leverage such progress by working 
together to move China and India toward accepting real 
climate change obligations.  Scientific collaboration will be 
critical to resolving climate change, and our environmental 
partnership would be enhanced by a new bilateral science and 
technology agreement. 
 
PROMOTING EDUCATION 
 
¶8.  (SBU) The best way to gain a U.S. partner in the Muslim 
world is through the free and open exchange of ideas--values 
which Indonesia shares.  President Yudhoyono has committed to 
doubling the government's educational budget.  We should 
 
JAKARTA 00002279  003.2 OF 003 
 
 
double our educational cooperation budget as well. Our goal 
should be to double the number of Indonesians studying in the 
United States (only 7,500 now) and the number of Americans 
studying in Indonesia over the next five years.  We should 
work with U.S. high-tech firms to assist Indonesia,s quest 
to make information technology part of every child's 
education.  The Indonesian leaders who were educated in the 
United States have been more forward-looking, reform-minded 
and willing to collaborate on joint initiatives than their 
Indonesian-educated colleagues.  There are too few American 
colleges and universities working with Indonesian 
institutions to develop advanced degrees, to do research, and 
to promote language learning, and exchanges.  We should 
promote university partnerships that create joint degree 
programs.  The top priorities should be applied science and 
technology, entrepreneurship, economic development, 
agriculture, and English.  Bringing the Peace Corps back to 
Indonesia in 2009 is an immediate mechanism to build 
people-to-people ties between our countries.  Investment in 
education will make Indonesia's economy more productive and 
Indonesia's democracy more effective.  A more prosperous 
Indonesia can become a key market for U.S. goods and an open 
economy in a region where protectionist tendencies lurk just 
beneath the surface.  These objectives advance U.S. regional 
and global interests. 
 
APPLYING SMART POWER 
 
¶9.  (SBU) Now is the time for a smart power strategy to push 
forward U.S.-Indonesia relations and U.S. interests 
throughout Southeast Asia.  Already the USG has worked well 
with Indonesia to counter terrorism, to stamp out piracy in 
the Straits of Malacca, to fight narco-trafficking, and to 
build strong security and police ties.  We have programs to 
support Indonesia,s remarkable democratic changes.  An 
active public diplomacy strategy has turned public opinion 
trends in our favor.  The policy initiatives suggested above, 
when added to ongoing programs, constitute a comprehensive 
smart power strategy.  Should President-elect Obama give a 
speech in the capital of a Muslim country on relations with 
the Islamic world, Jakarta would give him the most favorable 
platform. 
 
REQUEST TO NEGOTIATE A STRATEGIC PARTNERSHIP 
 
¶10. (SBU) Last month, President Yudhoyono suggested a 
strategic partnership with the United States; we should take 
him up on this idea.   Foreign Minister Wirajuda has told the 
Ambassador he is ready to begin discussions on the elements 
of a strategic partnership based upon our shared values of 
democracy, pluralism and respect for human rights (reftel A). 
 Mission requests authorization to respond positively. 
Additionally, we request guidance for discussions on a 
strategic partnership that includes substantive elements of 
democracy, regional security, climate change, and education. 
 
HUME