ROH, SBY INITIAL STRATEGIC PARTNERSHIP IN JAKARTA

C O N F I D E N T I A L SECTION 01 OF 02 JAKARTA 013453 SIPDIS SIPDIS E.O. 12958: DECL: 12/08/2016 TAGS: PREL ETRD ENRG KS ID SUBJECT: ROH, SBY INITIAL STRATEGIC PARTNERSHIP IN JAKARTA Classified By: DCM John A. Heffern, for reasons 1.4 (b) and (d). ¶1. (C) Summary. On December 4 in Jakarta, Indonesian President Susilo Bambang Yudhoyono and South Korean President Roh Moo-Hyun initialed a comprehensive 32-point "Strategic Partnership" encompassing a wide rage of areas for cooperation. The Partnership serves as a baseline for the development of bilateral relations, to be kept on track by periodic meetings of a Ministerial-level Joint Commission and an Eminent Persons Group. A contact at the South Korean Embassy in Jakarta pinpointed cooperation in nuclear energy, anti-corruption, and forestry as areas in which the two countries had made important headway. He confirmed that the ROK continues to welcome Indonesian diplomatic initiatives on Korean Peninsula problems. End summary. Strategic Partnership: A Broad Framework -------------- ¶2. (SBU) On December 4, South Korean President Roh Moo-Hyun and Indonesian President Susilo Bambang Yudhoyono signed a bilateral "Strategic Partnership To Promote Friendship and Cooperation" outlining cooperation on thirty-two different areas ranging from UN issues to consular and legal affairs. The agreement is similar to other such documents the GOI has concluded with Asian neighbors in that it aims, in very general terms, to deepen cooperation in a wide variety of political, economic, and technical fields. It covers programs already underway and targets areas for future cooperation. In keeping with Indonesia's traditional commitment to a strong ASEAN, the preamble to the Joint Strategy describes the agreement as reinforcing existing cooperation between ASEAN and South Korea in the ASEAN-Plus-Three framework. ¶3. (C) On December 6, Economic Counselor Cha Young-cheol of the South Korean Embassy described President Roh's visit as a great success and said that the Strategic Partnership, despite its breadth and vagueness in parts, had created a useful baseline for keeping the overall bilateral relationship on track via two mechanisms. First, the Joint Commission for Bilateral Cooperation, headed by the two Foreign Ministers and meeting biennially, would meet. Second, an Eminent Persons Group on Indonesian-South Korean relations would meet to keep the process on track between Commission meetings. Cooperation On Nuclear Power -------------- ¶4. (C) Cha singled out several components of the Strategic Partnership as being of particular significance. The first was a Memorandum of Understanding on cooperation on the development of nuclear power for civilian use. Cha said that there had already been contacts between the South Korean and Indonesian nuclear energy agencies, but the new agreement would institutionalize this and lay the groundwork for longer term cooperation. Indonesia had become a net importer of oil, while South Korea generated forty percent of its own energy from nuclear power plants. Anti-Corruption Lessons To Share -------------- ¶5. (C) The two nations' respective anti-corruption agencies also signed an important memorandum of understanding that will facilitate exchange of information and expertise. Cha claimed this was a GOI initiative and noted South Korea's recent experiences were highly relevant to Indonesia's nascent reform efforts. Cha cited a major seminar involving the Korean Independent Commission Against Corruption (KICAC) and its Indonesian counterpart, the Commission to Combat Corruption (KPK) in Jakarta on December 4-5 at which both Vice President Kalla and President Roh spoke. President Roh had described the pervasive culture of corruption that had arisen in Korea as its economy had rapidly expanded. Recalling a situation that must have sounded uncomfortably familiar to his Indonesian audience, Roh related that by the 1990s "shady ties between business and politics" had "threatened the country's continued economic development" and had ultimately contributed to South Korea's economic crisis of the late 1990s. Roh went on to describe how anti-corruption legislation and the creation of the Korea Independent Commission Against Corruption had had a significant positive impact on the Korean business climate. JAKARTA 00013453 002 OF 002 The new MOU, Cha stressed, aimed to share this expertise with Indonesia. ¶6. (SBU) Cha said the forestry provisions of the Strategic Partnership were also important. Indonesia had already agreed to make 500,000 hectares available to Korean companies that will plant and harvest timber as a renewable resource. Cha said that Korean survey teams were already active in Kalimantan in connection with this project. Indonesian Engagement of DPRK Welcome -------------- ¶9. (C) The Strategic Partnership notes "the constructive role played by the RI in addressing the issues concerning Korean Peninsula issues." During talks with President Roh, Yudhoyono expressed the hope that a solution to the DPRK's nuclear threat could be found in the context of the Six Party framework. Counselor Cha said that the Indonesians' non-confrontational approach to the DPRK was consistent with the ROK's view, and that Seoul genuinely welcomed Indonesian initiatives in this area. He recalled SBY's efforts last year to host a meeting between the DPRK and ROK defense ministers in Bali, a proposal which had ultimately been rejected by the North Korean side. Indonesia And ROK: A Perfect Fit -------------- ¶10. (C) Cha went on to characterize the bilateral relationship in general as "excellent." Implicitly drawing a contrast between South Korea and the other "Plus Three" powers Japan and China, he pointed out that the Indonesian experience with South Korea was free of historical baggage. South Korea was a major investor in Indonesia and an important market for Indonesian raw materials, yet no Indonesian harbored fears of South Korean domination. There were an estimated 30,000 South Koreans in Indonesia, making it probably the largest single expatriate presence in the country. South Koreans were a notable presence in the apparel, light manufacturing and construction sectors in Indonesia. Cha said that during the Indonesian monetary crisis of 1997-98, few South Korean investors had pulled up stakes; for this, they had won Indonesian gratitude. South Korea, he said, planned on hosting President Yudhoyono in Seoul in early 2007. PASCOE