VZCZCXRO6655
RR RUEHJS
DE RUEHJA #0046 0131100
ZNR UUUUU ZZH
R 131100Z JAN 10
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 4274
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUEHJS/AMCONSUL SURABAYA 2615

UNCLAS JAKARTA 000046 
 
SIPDIS 
SENSITIVE 
 
STATE FOR EAP/MTS 
STATE ALSO FOR H, EEB/TPP/BTA 
COMMERCE FOR 4430 NADJMI 
STATE PASS TO USTR EHLERS AND WEISEL 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EINV ID
SUBJECT: SENATOR BOND PROMOTES TRADE AND INVESTMENT LINKS WITH 
INDONESIA 
 
¶1. (SBU) Senator Christopher "Kit" Bond promoted U.S. investment and 
commercial ties as a way to promote close relations, combat 
terrorism through job creation, and contribute to the economic 
health of the United States in meetings with Indonesian Minister of 
Trade Mari Pangestu and the American Chamber of Commerce in Jakarta 
on January 9.  Senator Bond also addressed issues of Indonesian 
trade barriers, highlighting that uncertainty, arbitrary 
regulations, and perceived corruption reduced the opportunities for 
U.S. companies to expand in Indonesia. 
 
AmCham Takes the Message 
------------------------ 
 
¶2. (SBU) Senator Bond told the Board of Governors of the American 
Chamber of Commerce in Indonesia that U.S. businesses should invest 
more in Southeast Asia, particularly Indonesia, to promote closer 
relations with this crucial country, reduce terrorism by creating 
more jobs, and to maintain the United States' economic influence. 
Senator Bond listened to AmCham's views on obstacles to more robust 
investment in Indonesia, including regulatory and tendering 
uncertainty and perceived corruption.  AmCham members pointed out 
that companies operating in Indonesia are making money.  An energy 
company representative pointed out that Indonesia still welcomes 
independent oil companies, although regulatory changes are making it 
harder for them to do business.  Senator Bond stated that removing 
the tax on U.S. citizens' overseas income would be a positive 
development for U.S. companies overseas. 
 
Minister Pangestu Shares the Goal 
--------------------------------- 
 
¶3. (SBU) Minister Pangestu welcomed Senator Bond's goals of 
promoting trade and investment and stressed that Indonesia is making 
progress on addressing the obstacles.  She said Indonesia is in the 
midst of large-scale reforms with significant progress to date. 
Legal certainty, IPR, and corruption remain concerns for the 
government and investors, but she noted that anti-corruption efforts 
have been the most successful to date.  Pangestu believes that 
courts should be "better informed," particularly on IPR, but we can 
advance legal and regulatory issues through our Trade and Investment 
Framework Agreement process. 
 
¶4. (SBU) Pangestu stressed that the U.S.-Indonesia bilateral 
economic relationship focused too much on problems, that it should 
instead focus on opportunities and highlight successes, especially 
through the Comprehensive Partnership.  She stated that she intends 
to have Indonesian officials reach out to U.S. businesses throughout 
the United States, rather than focusing on Washington DC, New York, 
and Los Angeles.  Senator Bond encouraged links with Missouri. 
 
¶5. (SBU) Bond and Pangestu agreed that there were a number of areas 
where both countries could cooperate, including renewable energies, 
coal gasification, food processing, and financial services.  They 
also noted the benefits of concluding a new OPIC agreement and from 
recent large-scale deals such as the purchase of Boeing aircraft, 
Bond stressed the benefits of biotech crops to increase food 
production and biomass energy that is being developed in his home 
state of Missouri.  Both agreed that greater educational exchange 
would be beneficial, and Pangestu noted that University of Missouri 
has a world-class journalism school that could provide a great 
education to Indonesian journalism students. 
 
¶6. (U) Senator Bond did not have the opportunity to clear this 
message. 
 
HUME