VZCZCXRO7951
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #1254 2090855
ZNR UUUUU ZZH
R 280855Z JUL 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 2922
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS COLL
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS JAKARTA 001254 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR EAP/MTS, L, EEB/IFD/OIA MCULLINAN 
DEPT PASS OPIC 
USTR FOR KEHLERS, BWEISEL 
 
E.O. 12598: N/A 
TAGS: ECON EINV ETRD ID
 
SUBJECT: GOI SHOWS RENEWED INTEREST IN OPIC NEGOTIATIONS 
 
This cable contains an action request (paragraph 3) 
 
¶1. (SBU)  On Friday July 25, OPIC Acting General Counsel Robert 
O'Sullivan completed a successful round of exploratory discussions 
with Government of Indonesia (GOI) officials on updating OPIC's 
Investment Support Agreement with Indonesia.   GOI officials 
requested OPIC to propose a revised version of the agreement 
incorporating points raised in these discussions.  Upon reviewing 
the draft, the GOI will determine whether to enter into formal 
negotiations with the U.S. to update the agreement.   The GOI's lead 
negotiator, DEPLU Director for North and Central American Affairs 
Bunyan Saptomo, told O'Sullivan that the GOI would be prepared to 
pursue an aggressive timetable of negotiations with the intent of 
completing the agreement as a Comprehensive Partnership deliverable 
for a likely U.S. Presidential visit in November. 
 
¶2. (SBU) OPIC and GOI officials have agreed to a tentative 
negotiation schedule in anticipation of an affirmative decision by 
the GOI to formally enter Investment Agreement negotiations.  OPIC 
officials would be invited to Indonesia mid-August for the first 
round of negotiations, followed by a visit of GOI officials to the 
U.S. at the end of August.  OPIC officials would return to Indonesia 
in mid-September for a third (and possibly final) round.  The 
negotiations would likely focus on four general areas raised during 
the exploratory talks:  the foreign government approval process, 
coinsurance, taxation and dispute settlement.  Bunyan indicated that 
the GOI would consider committing to an English-language version of 
the agreement to expedite signing and avoid the need to certify 
translated texts.  O'Sullivan and Bunyan both agreed that based on 
these exploratory discussions, U.S. and GOI positions on these 
issues may be reconcilable. 
 
¶3. (SBU) ACTION REQUEST:  We encourage State/L to respond soonest to 
inquiries from OPIC officials on the revised draft Investment 
Support Agreement so as to expedite the GOI's decision process on 
entering negotiations.  Should the GOI and the U.S. successfully 
complete this agreement, Post recommends OPIC consider hosting a 
regional investment conference in Indonesia in Spring 2010.  This 
conference would could then be announced as a joint deliverable 
along with the updated agreement as part of a possible U.S. 
Presidential visit to Indonesia in November. 
 
¶4. OPIC Acting General Counsel Robert O'Sullivan cleared on this 
cable. 
 
HUME