AMBASSADOR'S FAREWELL CALL ON PRESIDENT YUDHOYONO

C O N F I D E N T I A L JAKARTA 010342


E.O. 12958: DECL: 10/21/2014
TAGS: PGOV PREL ECON PINS PTER ID
SUBJECT: AMBASSADOR'S FAREWELL CALL ON PRESIDENT YUDHOYONO

REF: A. JAKARTA 10310

B. JAKARTA 10281

C. JAKARTA 9800

D. JAKARTA 9750

Classified By: Ambassador Ralph L. Boyce, reason 1.5 (b) and (d).

Summary
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1. (C) The Ambassador paid a farewell call on President
Yudhoyono Oct. 21. Yudhoyono painted a broad picture of
needing to convince the Indonesian people on the importance
of international cooperation and friendship as well as
showing foreign friends that Indonesia is on the right
path. SBY said he sought cabinet members who would
implement his overall goals, but conceded that his choices
reflect concessions to his political partners. He will lay
out his policy goals at a Oct. 22 cabinet meeting. On the
Newmont case, SBY said he would meet with the Police Chief
Oct. 22, emphasizing that neither the Ministry of
Environment nor the WHO have detected the alleged
pollution. He would look into the Exxon-Mobil investment
proposal in Cepu. Negotiations with GAM leaders in Aceh
have started and SBY is prepared to make concessions. He
views GAM leaders in Sweden as more obstructionist and may
ask us for assistance in the future in speaking to the
Swedes. The GOI would watch Abu Jibril after he is
released. He reiterated his desire to meet President Bush
in Santiago, and asked that we facilitate a congratulatory
call to the U.S. election winner. He agreed to facilitate
early receipt of credentials for incoming Ambassador
Pascoe. End Summary.


2. (C) The Ambassador paid a farewell call on President
Susilo Bambang Yudhoyono (SBY) October 21 at the Istana
Palace. Already signaling change, SBY held the meeting in
a newly restored building that once held President
Sukarno's Office. The principle structure on the palace
compound will now only be used for ceremonial events.
Unlike former President Megawati, SBY was accompanied by a
notetaker, Dino Djalal, currently Director for North and
Cental American Affairs in the MFA, but who will clearly
receive a position close to the new President. After
opening pleasantries, a serene SBY touched on some of his
priorities.

The Overall Challenge
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3. (C) Characterizing himself as someone who has learned
much in the last few years, SBY described the ongoing
transition in Indonesia as one of continuing to pursue
ambitious reforms combined with the need to confront
transnational issues such as terrorism. Communicating this
historic dynamic both within the government and to the
people will be important. Indonesia needs to recognize
more fully that international friendship is needed, and
that in an era of globalization, international cooperation
is part of the solution to national problems. The
Indonesian people need to be convinced of this as well.
Simultaneously, Indonesia's foreign friends will have to
see that the country is in fact making correct policy
choices.

Choosing the Cabinet
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4. (C) SBY said he approached his cabinet choices, sworn in
earlier that day (septel),with specific criteria in mind.
He interviewed them individually and laid out for each of
them SBY's view of Indonesia's development over the next
five years. "Frankly," SBY said, he made concessions and
compromises as parties in coalition with his own Democratic
Party put forward candidates. He described half the new
cabinet as non-political people whom he chose freely.


5. (C) At the first Cabinet meeting to be held on Oct. 22,
SBY said that he will establish the roadmap for the new
government and lay down the rules of the game for all the
ministers. He will want all of them on board with his
leadership and said they will journey together based on
common views. While he made concessions in his choices,
SBY said he would not allow anyone to highjack his freedom,
and that he made his own decisions. He will appoint a new
military commander and police chief at a later stage.


6. (C) He acknowledged that the strength of his popular
mandate would help him deal with "conflicts of interest"
and would help him move his policies and strategies
forward. Smiling at a comment by the Ambassador expressing
surprise that the People's Consultative Assembly (MPR) did
not permit SBY to speak at the swearing in ceremony (ref.
A),SBY replied that he had a very good conversation with
MPR Chairman Hidayat Nur Wahid encouraging him to be open
to establishing new traditions.

Encouraging Foreign Investors
--------------


7. (C) The Ambassador reaffirmed our hope that SBY would
find a means to provide a positive signal to international
investors. He cited the proposed Exxon-Mobil investment of
2.3 billion dollars at Cepu as an example of a job-creating
project that could move forward quickly. He also cited the
problems that Newmont is having with pollution
allegations. SBY responded that he would call in the Chief
of Police Oct. 22 to discuss Newmont, noting in particular
that neither the Ministry of Environment nor the WHO had
found the alleged levels of pollution. He wants the police
to have a "complete picture" of the situation. Previous
objections by former Minister of National Development
Planning Kwik to the Exxon-Mobil project may have been tied
to irrelevant nationalistic feelings, SBY suggested. He
promised to follow-up.

Aceh Discussions have Started
--------------


8. (C) Communications with the GAM are under way. SBY has
dispatched a small team to hold conversations with Muzakir
Manaf, Commander of GAM forces in Aceh. SBY suggested that
a solution could possibly be found within three months. He
would make economic, social and political concessions and
that maybe amnesty would be granted to those who chose to
voluntarily rejoin "their brothers." In response to the
Ambassador's comments that GAM leaders in Indonesia seem
more flexible than those based in Stockholm, SBY agreed,
saying that the discussions are with leaders on the
ground. Acknowledging the offer for the U.S. to be helpful
in the process, SBY said that at some point he may ask the
U.S. to talk to the Swedish government about helping to
"disconnect" the GAM leadership in Stockholm.

Abu Jibril
--------------


9. (C) The Ambassador asked SBY to ensure that JI recruiter
Abu Jibril, scheduled to be released from prison Oct. 27
(ref. B),be closely watched by the security authorities.
SBY responded that he would so ensure. He added that he is
looking into creating a task force responsible for
monitoring dangerous individuals such as Jibril. He said
the idea is on his agenda to raise with the police chief
the next day.

Hopes to Meet POTUS in Santiago/Congratulate U.S. Election
Winner
-------------- --------------


10. (C) SBY asked for assistance insuring that he could
meet with President Bush at the APEC Summit in Santiago.
He asked that we facilitate a congratulatory call to the
winner of the U.S. Presidential elections, something he
described as important since he had been congratulated
after his own victory. He expressed full understanding
that we could not send a delegation to his inauguration at
the last minute. SBY mentioned he has had good
conversations with the Thai and Malaysian Prime Ministers.
Other ASEAN nations want Indonesia to be more active in the
organization. Apart from the APEC and ASEAN summits, he
will not travel outside of Indonesia during the first
hundred days. Expectations from the Indonesian people are
very high in the first 100 days, unrealistically so.
Laughing, SBY said some think that he is a "superman."

New Ambassador's Credentials
--------------


11. (C) In closing, SBY agreed to facilitate an early
presentation of credentials after Ambassador Pascoe arrives
in country.

Comment
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12. (C) As in previous meeting, SBY had Dino Djalal phone
in advance to preview the Ambassador's agenda. Arriving
from another location, SBY had a short briefing before the
Ambassador was led in. He will certainly be more scripted
than his predecessor and be able, at least on paper, have
staff follow through more effectively on his commitments.
Events over the last 24 hours (see septel on choosing the
cabinet) suggest that his natural inclination to
consultation and caution will brake his stated aim to bring
about important change. As he noted himself, expectations
are very high. While he is certainly the most qualified
Indonesian president, he will have to establish that he is
truly a leader. End comment

BOYCE