Identifier
Created
Classification
Origin
06JAKARTA2744
2006-03-02 07:24:00
CONFIDENTIAL
Embassy Jakarta
Cable title:  

ADMIRAL FALLON'S MEETING WITH DEFENSE MINISTER

Tags:  MASS MARR PREL PGOV ID 
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RUEHBY/AMEMBASSY CANBERRA IMMEDIATE 9067
RUEHWL/AMEMBASSY WELLINGTON IMMEDIATE 0598
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RHHMUNA/CDR USPACOM HONOLULU HI IMMEDIATE
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C O N F I D E N T I A L SECTION 01 OF 03 JAKARTA 002744 

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E.O. 12958: DECL: 03/02/2016
TAGS: MASS MARR PREL PGOV ID
SUBJECT: ADMIRAL FALLON'S MEETING WITH DEFENSE MINISTER
JUWONO SUDARSONO

Classified By: POLITICAL OFFICER RAYMOND RICHHART. REASONS 1.4 (B) AND
(D).

C O N F I D E N T I A L SECTION 01 OF 03 JAKARTA 002744

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E.O. 12958: DECL: 03/02/2016
TAGS: MASS MARR PREL PGOV ID
SUBJECT: ADMIRAL FALLON'S MEETING WITH DEFENSE MINISTER
JUWONO SUDARSONO

Classified By: POLITICAL OFFICER RAYMOND RICHHART. REASONS 1.4 (B) AND
(D).


1. (C) Summary: PACOM Commander Admiral Fallon February 23
discussed with Indonesian Minister of Defense Juwono
Sudarsono difficulties budget shortfalls caused for TNI's
ability to respond to "natural and man-made disasters" and
the GOI's procurement focus on transportation assets, which
could be employed for humanitarian as well as military
purposes. Juwono warned of TNI's limited absorptive capacity
and consequent need to focus U.S. assistance. Admiral Fallon
noted U.S. interest in concluding a Status of Forces
Agreement (SOFA); Juwono was non-committal. The PACOM
Commander stressed to Juwono the importance the U.S. placed
on maritime security in the region and told him that the U.S.
was very interested in discretely supporting cooperation
among Indonesia, Malaysia and Singapore. End Summary.

Sad State of the Defense Budget
--------------


2. (C) PACOM Commander Admiral Fallon opened his meeting
February 23 with Indonesian Defense Minister Juwono by
stressing the mutual benefits of the recently normalized
bilateral military relationship and sought Juwono's views on
Indonesian defense priorities. Juwono lamented the state of
the defense budget and how shortfalls restricted the
priorities he could set. TNI's budget this year was $2.4
billion, which represented only 49 percent of the $5.6
billion he believed necessary to properly fund TNI at the
minimum level. Of the budgeted amount, 70 percent was for
personnel and basic maintenance of facilities and materiel.
Because of budget shortfalls, the Army was at 70 percent
readiness and the Navy and Air Force at 40 percent readiness.
He expected that for the next five to ten years TNI would
experience difficulty responding to natural and man-made
disasters, adding that the potential for local conflicts in
Indonesia remained. He noted that of TNI's 100 battalions,
only one was a medical unit. PACOM's donation in January of

a fleet hospital, therefore, represented a particularly
welcome augmentation of capacity.


3. (C) Admiral Fallon replied that the hospital donation was
a "good place to start" because it added capacity for
disaster assistance and would boost morale in TNI's own ranks
because it gives TNI the capability to care for its injured
and wounded. He noted that the U.S. could do much to assist
TNI and asked about GOI's priorities for TNI. He explained
that FMF had a normal lead-time of three years and would
require time to reach increased levels, although his Command
and the Embassy had sought ways to accelerate the process.

Procurement Focus on Transport
--------------


4. (C) Juwono, referencing the "triangle" of procurement
options -- strike force, transport and supplies -- said that
the GOI would focus on transport, in particular ships and
airplanes. Indonesia would not have the money to upgrade its
"strike force" by purchasing fighters and refurbishing its
submarines. Admiral Fallon noted this matched the U.S.
assessment, and that he understood TNI's budget constraints.
The Admiral asked the status of TNI's businesses. Joewono
responded that "not much is left of TNI businesses," many of
which had collapsed during the past five years, he said, in
part because of competition from privately owned firms.
Juwono stated that an interagency group, with participation
by the Ministry of Defense, Ministry of Finance, and Ministry
of Law and Human Rights, was evaluating the military
businesses. Juwono said that of the 219 identified TNI
businesses -- full-fledged businesses, cooperatives and
foundations -- only 6 or 7 were viable enterprises.


5. (C) Admiral Fallon discussed the importance of basic
security and stability to the democratic process. Juwono
agreed and noted that for the next ten years TNI would be one
of the most important "delivery systems" to provide
government services. TNI would emphasize Air Force C-130s
and Navy LST craft, which were appropriate both for disaster
response as well as military purposes. The "ability to do
good things" remained important for TNI's role in Indonesia.
Admiral Fallon noted that the U.S., too, was changing its
doctrine and strategy to emphasize smaller vessels for

JAKARTA 00002744 002 OF 003


littoral operations, changes that were especially relevant to
Southeast Asia. He said that PACFLT Commander Roughead would
visit soon to gain a better understanding of Indonesia's
needs.

Training for Non-Commissioned Officers
--------------


6. (C) Explaining that the U.S. had found that well-trained
non-commissioned officers allowed U.S. forces to do more with
fewer people, Admiral Fallon introduced USMC Sergeant Major
Bill Kinney, PACOM Senior Enlisted Leader, and offered that
the U.S. could work with Indonesia to identify training
programs for senior enlisted personnel. He suggested that
training with U.S. and Indonesian NCOs side-by-side had a
very high potential payoff. Juwono noted that U.S. Navy
Seals currently were conducting training in a JCET. Admiral
Fallon responded that the U.S. planned to continue training
to assist Indonesia to develop its capability to secure the
sea routes exploited by terrorists and criminals.

Limited Indonesian Absorptive Capacity
--------------


7. (C) Juwono stressed to Admiral Fallon that U.S.
assistance should be selective, because outside help could
overwhelm Indonesia and become counterproductive. Admiral
Fallon agreed that the U.S. would be sensitive to this
concern, noting that the U.S. wanted to make available
programs the TNI could readily absorb. He added that he
would give appropriate guidance to his component commanders
who were primarily responsible for the conduct of US training
and exercise programs. Juwono observed that not many
Americans realize how influential their country has become
and how overwhelming it can be, adding that the U.S. military
budget is larger than those of the next fifteen combined.

Indonesian Peacekeeping Force
--------------


8. (C) The Ambassador asked Juwono for details behind
reports that Indonesia had plans to increase its peacekeeping
capacity. Juwono said that Indonesia had undertaken
peacekeeping assignments since 1956 and Indonesian troops had
performed very well. Indonesia had done well in Cambodia and
the GOI now wanted to build on this experience. The
Ambassador noted that in Iraq and Afghanistan the U.S. had
found it lacked lightly armed gendarme forces to help
maintain order, and that this might be an area in which
Indonesia could contribute. Juwono indicated that Indonesia
could consider fielding such forces, as long as it did so
under UN auspices. He did not rule out a future deployment
to Afghanistan with international forces.

Status of Forces Agreement
--------------


9. (C) Admiral Fallon told the Minister that the U.S. was
interested in concluding both a Status of Forces Agreement
(SOFA) and an Article 98 Agreement with Indonesia, and asked
whether the Department of Defense would have responsibility
for the negotiation of these. Juwono replied that the
Department of Foreign Affairs was responsible for negotiating
an Article 98 Agreement. Ambassador Pascoe reminded Juwono
that the U.S. and Indonesian had quickly concluded a
confidential SOFA to facilitate tsunami relief efforts by

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U.S. forces, and urged that action be taken to being talks on
a permanent SOFA.

Importance of Maritime Security Efforts
--------------


10. (C) Admiral Fallon stressed to Juwono the importance the
U.S. placed on maritime security in the region and told him
that the U.S. was very interested to support discretely
cooperation among Indonesia, Malaysia and Singapore. He
added that the U.S. was pleased with the coastal surveillance
radar Indonesia planed to install, noting that this would be
a "good foundation to build and expand on" for future
cooperation. He reiterated that maritime security was a high
U.S. interest. Juwono replied that that "the big problem is
equipment," adding that this was not so much a problem of
surveillance as the ability to respond. The Ambassador noted

JAKARTA 00002744 003 OF 003


that the U.S. ICITAP program would provide training and boats
for the Marine Police, which would provide some pursuit
capacity.


11. (U) Admiral Fallon has cleared this message.
PASCOE