Identifier | Created | Classification | Origin |
---|---|---|---|
06JAKARTA8622 | 2006-07-10 12:05:00 | CONFIDENTIAL | Embassy Jakarta |
1. (C) Summary. In the first initiative of its kind, Chairman of the Indonesian Chamber of Commerce and Industry (KADIN) Mohammed Hidayat led a 12-person delegation of Indonesian Christian and Muslim business representatives to Israel June 25-29. The group met several senior Israeli Government officials, including Foreign Minister Livni and Directors General at the Foreign and Trade Ministries. Hidayat signed an agreement with the Israeli Manufacturer's Association (IMA) on June 27 calling for facilitating information sharing and joint business projects between the two countries. A senior Kadin official told us on July 3 that several modest follow-up activities are in the works, including possible Israeli participation in a November 2006 infrastructure forum in Jakarta, a possible agricultural development project between the Indonesian Muslim mass organization Nahdlatul Ulama (NU) and an Israeli firm, and a possible invitation from NU to Israeli religious scholars for discussions of interfaith issues. NU's willingness to participate in the mission during a period of heightened political tensions in Israel and the Palestinian territories demonstrates again its moderate political stance. Domestic Indonesian press reporting on the visit has been surprisingly low-key. End Summary. First Time Business Mission to Israel -------------------------- 2. (C) John Prasetio, Chairman of Kadin's International Department, briefed us on July 3 about the June 25-29 Kadin business mission to Israel. Prasetio, a Chinese-Indonesian Christian, told us he arranged the visit with the assistance of Israeli Ambassador to Singapore Ilan Ben-Dov, whom he met on two occasions. Chairman of Kadin and Golkar Member of Parliament Mohammed S. Hidayat led the mission. Other prominent participants included former Minister of Trade and Industry Luhut Pandjaitan; Kadin Vice President and wealthy Indonesian businessman Chris Kanter; Tata Susila "Maxi" Gunawan, the "financial backer" of current State Secretary and former President of the Crescent Star Party (PBB) Yusril Mahendra; Zuhairi Bin Misrawi, program officer at the NU-linked "Indonesian Society for Pesantren and Community Development (P3M), and Sandiaga Salahuddin Uno, President of the Young Indonesian Entrepreneurs' Association (HIPMI). In press remarks following the group's return to Indonesia, Hidayat said the visit was for business purposes only and that his delegation undertook the trip in response to an invitation from the IMA. 3. (C) Neither Kadin nor the Government of Indonesia (GOI) announced the trip in advance and no journalists traveled with the group, facts that illustrate the continuing political sensitivity in Indoensia of expanding relations with Israel. Prasetio said he briefed Foreign Minister Hassan Wirajuda prior to the trip, who responded that although the Foreign Ministry had no objection, neither would it endorse the trip. Presidential advisor Yenny Wahid had been scheduled to participate in the mission, Prasetio said, but had backed out when President Yudhoyono appeared "reticent" when told of her plan to join the delegation. Similarly, NU's rival Muslim mass organization Muhammadiyah backed out of the mission at the last minute. According to Prasetio, prominent Indonesian businessman James Riady financed the travel of the NU participants as an inducement for them to participate. 4. (C) Prasetio said the group was received warmly in Israel, meeting briefly with Foreign Minister Livni on two occasions and holding more substantive sessions with Directors General at the Trade and Foreign Ministries. The group also received a briefing by the Mossad, which not surprisingly, described Iran and Iraq as Israel's top security concerns. Prasetio noted that the mission had faced a few challenges--he said delegation leader Hidayat was critical until the final day of the visit, and refused to attend a meeting scheduled with a Muslim member of the Knesset. Modest Follow Up Activities Planned -------------------------- 5. (SBU) Prasetio described several modest follow up activities that may flow out of the visit. He said Kadin would likely invite Israeli companies to participate in the planned November 2006 "Indonesia Infrastructure Conference" JAKARTA 00008622 002 OF 002 which Kadin will organize with the Coordinating Ministry for Economic Affairs. In addition, Prasetio said the NU and an Israeli agribusiness firm with experience in water-drip technology may cooperate on an agricultural development project in Eastern Indonesia, where rainfall is scarce. Finally, the NU may invite Israeli religious scholars to visit Indonesia for discussions of interfaith issues. Delegation member Zuhairi Bin Misrawi of the NU has participated in several international programs on religious pluralism, including at least one sponsored by the Department of State. 6. (SBU) Indonesians may travel to Israel with regular passports but Indonesia does not have formal diplomatic relations with Israel. Prasetio estimated that informal trade with Israel amounted to about USD 150 million in 2005, most of which was Indonesian exports to Israel of agricultural products such as rubber. Israeli exports to Indonesia, estimated about USD 14 million, consist mostly of chemicals and electronics. The Jerusalem Post quoted the IMA President as stating that the agreement could increase two-way trade to USD 600 million by 2010. Comment: Limited Press Blowback -------------------------- 7. (C) Despite the hush-hush preparations for the visit, we have been struck by the very limited reaction in the Indonesian press now that the Kadin mission has become public. Although a handful of Indonesian dailies have published articles that included some criticism of the mission, press coverage has been reasonably balanced and the story is fading fast. Another noteworthy facet of the trip was NU's willingness to participate, a fact that underscores to us the organization's continued, moderate approach to political issues involving religion. PASCOE |