VZCZCXYZ0000
PP RUEHWEB

DE RUEHJA #0763 1200830
ZNR UUUUU ZZH
P 300830Z APR 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 2237
INFO RUEHML/AMEMBASSY MANILA 3322
RUEHGP/AMEMBASSY SINGAPORE 6518
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS JAKARTA 000763 
 
SENSITIVE 
SIPDIS 
 
EAP/MTS, EAP/EP FOR K. HADDA, EEB/IFD/ODF FOR R. LEATHAM 
SINGAPORE FOR SUSAN BAKER 
MANILA FOR P. CURRY AT ADB 
 
E.O. 12958: N/A 
TAGS: ECON EAID PREL PGOV ETRD ID
SUBJECT: INDONESIA SUPPORTS ADB GENERAL CAPITAL INCREASE, 
 
REFORM 
 
REF: SECSTATE 41663 
 
¶1. (U) Indonesian officials expressed strong agreement 
with the proposed 200 percent General Capital Increase 
(GCI) for the Asian Development Bank and welcomed U.S. 
support for the GCI.  Increased resources for the ADB 
remain a government of Indonesia priority and has 
assumed greater importance after the onset of the 
global economic crisis. 
 
¶2. (U) Embassy delivered reftel demarche to Cicilia 
Rusdiharini, Deputy Director for American Affairs at the 
Department of Foreign Affairs on April 28 and to Teni 
Widuriyanti, Head of Sub-Directorate for Multilateral 
Foreign Funding, State Ministry of National Development 
Planning (Bappenas), and Mada Dahana, also of Bappenas, 
on April 29. 
 
¶3. (SBU) Indonesia strongly supports the proposed GCI, 
advised Widuriyanti.  Additional resources are 
needed to fund priority infrastructure projects 
and support developing countries in their efforts to 
maintain key public expenditures during the current 
global economic crisis.  Widuriyanti took on board 
our point about the importance of progress on reforms 
for U.S. efforts to secure Congressional approval 
for increased U.S. contributions to the ADB.  She 
said Indonesia also supported continued ADB reforms 
and had fed specific items on multilateral development 
reform into the G-20 Working Group IV on reform of MDBs. 
Widuriyanti had not seen the March 16, 2009 working 
paper on the GCI with the specific areas of reforms 
to which the ADB committed itself. 
 
¶4. (SBU) Widuriyanti agreed that reforms such as regular 
publication of the list of sanctioned companies would 
enhance the effectiveness of ADB assistance.  (Note: 
On April 29, Bappenas Executive Secretary Syahrial 
Loetan was quoted in the press expressing doubts about 
the accuracy of the ADB black list.  Widuriyanti explained 
that the lack of detailed information about companies 
and individuals on the list triggered questions about 
its accuracy.  End note)  She noted Indonesia also 
supported reform of ADB human resources policies and 
sought greater opportunities for Indonesian nationals 
on ADB's staff. 
 
¶5. (SBU) Dahana advised that the government of Indonesia 
supported effective safeguard standards, but noted it had 
experienced some problems related to land acquisition as 
a result of conflicts between Indonesian national law 
governing compensation for land acquisition and ADB 
requirements.  Dahana and Widuriyanti advised that the 
Indonesian government had engaged in discussions with 
non-governmental organizations and the ADB on safeguard 
issues, particularly related to the environment.  They 
expressed some concern about a growing gap between the 
level of safeguards sought by some NGOs and the level 
provided in accordance with national safeguard policies. 
 
HUME