VZCZCXYZ0000
OO RUEHWEB

DE RUEHJA #0427 0710816
ZNR UUUUU ZZH
O 120816Z MAR 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1806
RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE
RHEHNSC/NSC WASHDC IMMEDIATE
INFO RUEHLO/AMEMBASSY LONDON 0922
RUEHGP/AMEMBASSY SINGAPORE 6479

UNCLAS JAKARTA 000427 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR EAP/MTS, EEB/IFD 
TREASURY FOR M.NUGENT, T.RAND 
SINGAPORE FOR S. BAKER 
 
E.O. 12958: N/A 
TAGS: EFIN ECON EAID ID
 
SUBJECT:  SUGGESTED THEMES FOR GEITHNER-SRI MULYANI PULL ASIDE ON 
MARGINS OF G-20 FINANCE MINISTERS MEETING 
 
REF: A) Jakarta 418 B) SECTO 9 C) SECTO 10 
 
Sensitive But Unclassified.  Not for Internet Distribution. 
 
¶1. (SBU) Indonesian Finance Minister Sri Mulyani Indrawati will use 
her pull aside with Treasury Secretary Geithner to repeat 
Indonesia's requests made by Indonesian President Yudhoyono and 
Foreign Minister Wirajuda during Secretary Clinton's February 18-19 
visit.  Embassy recommends that Secretary Geithner congratulate 
Indonesia for its successful management of the financial crisis and 
look for ways to coordinate our positions on changes to the 
international regulatory framework. 
¶2. (SBU) Numerous Indonesian officials have said that Sri Mulyani 
will likely ask Secretary Geithner about the status of Indonesian 
requests for economic assistance to the U.S. relayed to Secretary 
Clinton during her recent visit to Jakarta (reftel).  Indonesia 
requested that the United States Federal Reserve provide a bilateral 
currency swap line.  Sri Mulyani will also likely reiterate 
Indonesian officials' request for U.S. support for a capital 
increase for the Asian Development Bank and may ask whether the U.S. 
could agree to a bilateral add-on to the World Bank-led contingency 
financing package approved on March 3. 
¶3. (SBU) We recommend that Secretary Geithner congratulate Sri 
Mulyani for Indonesia's successful management of the crisis to date. 
 Sri Mulyani has led Indonesia to some sound policy decisions (quick 
action to increase liquidity, approval of a fiscal stimulus package 
equal to 1.4% of GDP, and successful domestic and global bond 
issuances) and also faced down some direct challenges to her 
authority (she reportedly threatened to resign over an attempt to 
overturn her decision to resume public trading of a company 
controlled by a fellow cabinet member).  And she proactively sought 
contingent World Bank financing.  She has not, however, been a 
public voice against increasing trade barriers in Indonesia. 
¶4. (SBU) Sri Mulyani is also a potential ally against attempts to 
develop overly restrictive global financial regulations.  She is 
concerned that developing countries will be unable to effectively 
implement some of the regulations currently being proposed. 
 
HEFFERN