AMBASSADOR DISCUSSES ASSISTANCE AND LOCAL

C O N F I D E N T I A L SECTION 01 OF 02 JAKARTA 013496

SIPDIS

SIPDIS

E.O. 12958: DECL: 12/15/2016
TAGS: PREL PGOV EAID ECON ID
SUBJECT: AMBASSADOR DISCUSSES ASSISTANCE AND LOCAL
SELF-GOVERNANCE WITH MINISTER OF INTERNAL AFFAIRS

Classified By: Ambassador B. Lynn Pascoe, for reasons 1.4 (b, d).


1. (U) Summary. Ambassador Pascoe met with Indonesian
Minister for Home Affairs Mohammad Ma'ruf on December 12 to
discuss cooperation and assistance issues. The Ambassador
congratulated the Government of Indonesia on the success of
the provincial elections in Aceh, urged closer coordination
to facilitate USAID assistance programs to local governments
in support of political decentralization, and discussed GOI
decentralization and development initiatives in Papua and
Irian Jaya. End summary.

WELCOMES ACEH ELECTION


2. (U) Ambassador Pascoe congratulated Home Affairs Minister
Ma'ruf on the successful provincial elections in Aceh on
December 11. The Government of Indonesia had upheld its
commitment in the Helsinki MOU and had ensured smooth
elections. This was an excellent example of democracy in
practice. The official team of observers deployed by the
Embassy to Aceh had given the election a positive overall
assessment.


3. (C) Ma'ruf said the principles of autonomy and
decentralization, which the GOI had endorsed, required the
national government to support democracy on the local level.
The GOI had been particularly careful in the transition to
peace and self-governance in Aceh and wanted to see it
succeed. Northern Sulawesi and Papua required similar care
because of their potential for conflict. The elections in
Aceh, which combined gubernatorial and district
administrative elections, was more efficient than separate
elections and could become a model for other provinces. The
GOI hoped the vote counting would occur in an orderly fashion
and according to the regulations. If any candidate was
dissatisfied with the process or the outcome, he should seek
redress through legal means.


4. (C) Peace in Aceh was essential for continued recovery and
economic development, the minister stated. Both the national
and the provincial government had a responsibility to improve
the welfare of the people of Aceh. The GOI was drafting
regulations to implement the Law on the Governance of Aceh,
passed in 2006, and hoped the new government in Aceh would do
the same. The strengthening of political parties was
important for stability in the political process, and the
development of the port in Sabang and Aceh's oil and gas
reserves was essential for economic growth. Ma'ruf thanked
the Ambassador for the assistance rendered after the 2004
tsunami.

SIPDIS

U.S. ASSISTANCE TO PROVINCIAL AND LOCAL GOVERNMENTS


5. (U) The Ambassador briefly described USAID's $60 million
program to build the capacity of local governments throughout
Indonesia to make them more responsive and effective and to
improve the quality of public services. The program, he
emphasized, had been developed through consultation with the
Government of Indonesia and aimed to support the
decentralization of governance and decision making which had
resulted from new laws and policies since 1998. The
Ambassador said the United States wanted to work closely with
the Department of Home Affairs to implement the assistance
program. Regular dialogue between them would ensure the
program continued to support Indonesian policies and
directives.


7. (C) Ma'ruf said decentralization of governance in
Indonesia was an evolving process in which local governments
had much to learn, and much depended upon the effective
utilization of resources. He acknowledged that the iterative
nature of the process could produce misunderstandings among
local government employees and the public. It was therefore
critical that USAID work closely with ministry staff and
consult regularly on program implementation. Joint
monitoring and supervision visits to local programs would
facilitate successful implementation.

PAPUA


8. (C) The Ambassador said the United States would welcome
improved access of foreigners to Papua, and was not convinced
there were valid security grounds for restricting access. If
the GOI had evidence that U.S. NGOs were encouraging
separatist agitation, the Embassy would appreciate the GOI's
sharing the information directly with the Embassy rather than

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making unilateral assertions in the media. The Embassy was
pleased the newly elected governors in Papua were working to
galvanize support for a social development agenda to address
the poverty in the region. The Embassy was cooperating with
the GOI to provide assistance to this important region,
including treatment and prevention of HIV-Aids, malaria,
tuberculosis and promotion of education and water sanitation.
As part of the USG assistance partnership with the BP
Foundation, the Embassy was looking forward to extending good
governance to local governments in West Irian Jaya Province.


9. (C) Ma'ruf said the Papua Autonomy Law, which had been
passed in 2001, was due for review in 2006 and said the GOI
had elicited input from the universities in Papua and Irian
Jaya. The "New Deal" for Papua, which was currently in
preparation as a Presidential instruction, was designed to
make up for shortcomings in development that decentralization
has not been able to remedy. Ma'ruf said he had given the
President his assessment that the measure would help to
achieve this goal. The severity of poverty in Papua required
that the implementation of the development programs be
accelerated, which would entail large budgetary outlays.
Infrastructure development was important as a means of
stimulating overall economic development. This acceleration
could be achieved if the Papuan and Irian Jayan parliaments
shared this vision. The GOI would continue to encourage the
inclusion of public figures in discussions and planning. The
Ministry of Human Welfare had the lead in this process, and
the Ministries of Justice and Human Rights, Finance and the
State Planning Body also had a major role to play.
Generally, the GOI hoped to intensify cooperation with
outlying provinces such as Papua and Aceh and strengthen the
bonds between the center and the periphery.
PASCOE