VZCZCXRO3245
OO RUEHJS
DE RUEHJA #1861 3131351
ZNR UUUUU ZZH
O 091351Z NOV 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3774
INFO RUEHJS/AMCONSUL SURABAYA 2563

UNCLAS JAKARTA 001861 
 
SIPDIS 
SENSITIVE 
FOR SECRETARY CLINTON FROM AMBASSADOR HUME 
 
DEPT FOR EAP/MTS 
DEPT PASS TO PEACE CORPS 
 
E.O. 12598: N/A 
TAGS: EAID USAID PREL PGOV ID
SUBJECT: An Opportunity to Finalize Peace Corps Agreement with 
Indonesia 
 
¶1.  (SBU) We have an opportunity to advance U.S.-Indonesian 
relations by completing a Peace Corps agreement in time for a joint 
announcement by President Obama and President Yudhoyono at the APEC 
Summit in Singapore this week.  There is only one remaining issue 
left preventing an agreement.  It can be resolved by granting Peace 
Corps Director Aaron Williams' request that the State Department 
issue Official Passports to Peace Corps Volunteers assigned to 
Indonesia.  This is a reasonable and necessary final step for Peace 
Corps to establish a long overdue program in Indonesia. 
 
¶2.  (SBU) Indonesia's laws and regulations do not accommodate 
U.S.-funded persons to reside and work in Indonesia with 
non-official passports.  Non-official passport holders are subject 
to visa, tax and other administrative requirements that would place 
an undue burden on Peace Corps and prevent it from developing a 
robust program in Indonesia.  For example, Volunteers would be 
subject to visa fees and limited durations of stay that would 
require Peace Corps to fund Volunteer travel outside of Indonesia 
for visa renewals to complete their service. The costs and 
administrative burdens would restrain Peace Corps ability to grow in 
Indonesia beyond a modest size.  But a country the size of Indonesia 
requires a Peace Corps program of a much grander scale. 
 
¶3.  (SBU) The Japanese International Cooperation Agency (JICA), an 
organization comparable to Peace Corps, faced the same problem with 
its Volunteers.  JICA solved it by making an exception to issue 
Official Passports to Volunteers assigned to Indonesia.  JICA 
realized that that issuing Official Passports was the only 
affordable means to operate effectively in Indonesia.  We are not 
asking that Official Passports be issued to Volunteers in every 
Peace Corps country.  However, we know from the experience of the 
Japanese that it is appropriate, and effective, in Indonesia. 
 
¶4.  (SBU) Unfortunately, the initial determination from Consular 
Affairs was to disallow Peace Corps request, arguing that Department 
regulations only allow issuance of Official Passports to USG 
officials and employees.  However, under the Peace Corps Act, 
Volunteers are considered federal employees for numerous legal 
purposes.  Volunteers receive federal pension benefits, federal 
health care, and federal compensation in the form of a readjustment 
allowance.  Volunteers also take an oath of loyalty to the U.S. 
Government and are treated as federal employees by our embassies. 
When Peace Corps was founded, it was appropriate to maintain 
distinctions, some more symbolic than others, between Volunteers and 
Official Americans.  However, times have changed and issuing 
Official Passports does not change the role or function of the 
Volunteer. 
 
¶5.  (SBU) If this final issue is positively addressed, we can 
complete an agreement that will allow Peace Corps, over time, to 
develop an appropriately sized program for the world's third largest 
democracy and largest Muslim-majority country.  If the Peace Corps 
can deliver good news to the Indonesians during negotiations this 
week, it will also be possible to complete this agreement in time to 
be announced by both presidents at the APEC Summit. An announcement 
that Peace Corps would return to Indonesia after a 40 year absence 
would deepen the impact of President Obama's upcoming bilateral with 
President Yudhoyono.  And while there are no confirmed plans for 
President Obama to visit Indonesia, President Yudhoyono has invited 
him to visit next year and an established Peace Corps program could 
be a highlight of that trip. 
HUME