THE SECRETARY'S SEPTEMBER 26 MEETING WITH

C O N F I D E N T I A L STATE 164524


E.O. 12958: DECL: 05/19/16
TAGS: PGOV PREL MOPS UN ID
SUBJECT: THE SECRETARY'S SEPTEMBER 26 MEETING WITH
INDONESIAN VICE PRESIDENT KALLA


1. (U) Classified by: EAP Acting A/S Kathleen Stephens,
Reasons 1.4 (b) and (d).


2. (U) September 26, 2006; 1:45 p.m.; Washington, DC.


3. (U) Participants:

U.S.
The Secretary
Ambassador Lynn Pascoe, Embassy Jakarta
EAP A/S Christopher Hill
PA A/S Sean McCormack
Steve Beecroft (S Staff)
Ethan Glick (EAP/MTS, notetaker)

INDONESIA
Vice President Jusuf Kalla
Foreign Minister Hassan Wirajuda
Ambassador Sudjadnan Parnohadiningrat

Trade Minister Mari Pangestu
Vice President's Secretary Bapak Prijono


4. (C) Summary. The Secretary urged conclusion of a
Millenium Challenge threshold agreement in time for the
potential visit by the President in November. She praised
Kalla's personal involvement in concluding the Aceh peace
deal, which Kalla said was holding successfully. Kalla was
pleased that peace in Aceh had freed military resources so
Indonesia could play an expanded role in international
peacekeeping. FM Wirajuda confirmed the UN had asked
Indonesia to delay its contribution to Lebanon peacekeeping
until next month. The Secretary expressed satisfaction
with growing bilateral military ties and pushed for
expanded IMET particpation. She asked about the progress
of the East Timor Truth and Reconciliation Commission and
for Kalla's assessment of the situation in East Timor.
Kalla saw promise in East Timor's energy projects with
Australia to stimulate the economy and "solve it fast."
Wirajuda said the East Timor unrest had surprised Jakarta,
but Kalla pronounced it similar to the strife Indonesia had
experienced following independence between guerrillas and
"educated" officers. Wirajuda said the mandate of the
Truth and Reconciliation Commission had been extended for a
year and hearings would take place in the coming weeks.
The Secretary made the case for Guatemala over Venezuela on
the UN Security Council. Kalla agreed the UNSC required
serious members in order to take the strong decisions
required of it, with Wirajuda adding that Indonesia has an
understanding with Guatemala. The Secretary and Kalla
concluded with a discussion of countering extremist
ideology. End Summary.

Economic Development
--------------


5. (C) The Secretary expressed hope that Indonseia would
be able to conclude a Millenium Challenge Account (MCA)
Threshold Program before President Bush's possible visit to
Indonesia in November. The MCA was one of the President's
signature programs and Indonesia's participation would be a
testament to the progress the country has made in meeting
good governance standards. Ambassador Pascoe noted that he
was actively seeking approval to devote MCA funds to
furthering anti-corruption efforts and infectious disease
inoculations.


6. (C) Vice President Kalla said economic development in
Indonesia was one of his most important priorities. He was
devoting most of his time in the United States to
encouraging investment and import/export opportunities. He
said he was having a series of meetings while here and
pronounced American business optimistic about Indonesia's
prospects. Having stabilized its political situation,
Indonesia now wanted to focus on creating more economic
opportunities for its people. Only with more intensive
economic development could Indonesia sustain its progress.

Aceh Peace
--------------


7. (C) The Secretary praised Kalla's personal involvement
in bringing about a peace deal in Aceh, noting that no one
had thought anything good would come out of the tsunami.
Kalla said the deal was holding successfully and pointed to
the implementation of laws last month in accordance with
the deal. He looked forward to the local elections in
December and said people in the region were happy with the
progress. The tsunami had been instrumental in creating
the climate necessary to make peace. Kalla recounted some
of the milestones in the peace process and said it should
serve as a model for how to solve conflicts.

Military Relationship/Reform
--------------


8. (C) Kalla said peace in Aceh meant that for the first
time in thirty years the Indonesian military was not
conducting operations inside the country. The Secretary
repeated her admiration for the progress Indonesia's
military had made and said the United States values our
military-to-military ties. She looked forward to expanding
our International Military Education Training (IMET)
program with Indonesia and said the United States will be a
good and reliable partner for Indonesia as reform goes
forward in modernization and in consolidating civilian
control. Kalla said Indonesia highly values the IMET
program for the opportunities it creates for Indonesian
officers. The Secretary says she often uses the example of
President Yudhoyono, a past program participant, to
illustrate its value.

UNIFIL Contribution
--------------


9. (C) The Secretary asked Kalla when Indonesia would be
sending its troops to the UNIFIL mission in Lebanon. FM
Wirajuda responded that the intent was to send the
contingent next week, but the UN had asked the GOI to delay
until next month. Kalla added that Indonesia was proud of
its role in international peacekeeping, noting its long-
standing contribution to the UN Sinai mission.

East Timor: Crisis and Accountability
--------------


10. (C) The Secretary asked for Kalla's views on recent
unrest in East Timor and about the progress of the Truth
and Reconciliation Commission for 1999 crimes. Wirajuda
said the unrest in East Timor had surprised Jakarta. Kalla
suggested that the strife was similar to the period
following Indonesia's own independence, when guerrilla
groups came into conflict with the "educated" elite class
of military officers. Indonesians had been following
events closely and pointed out that Ramos-Horta came many
times to Jakarta throughout the period of turmoil. Kalla
thought that economic ccoperation with Australia in the oil
and gas sector held the promise to "solve it fast."


11. (C) Wirajuda said the mandate of the Truth and
Reconciliation Commission had been extended for another
year. In the coming weeks, the Commission would hold
hearings on alleged human rights violations in 1999. He
assessed that the Commission members knew well what they
needed to do and were optimistic about making progress in
their work.

Guatemala v. Venezuela
--------------


12. (C) The Secretary laid out the case for supporting
Guatemala over Venezuela for non-permanent Security Council
membership. She said that if the world had any doubts
about whether Venezuela was a problem, Chavez's recent UNGA
speech erased them. While the United States has had a
long-term productive relationship with Venezuela, now we
are unable to work together. The Secretary pointed to the
numerous issues in the past year alone that had required
strong UNSC responses, including North Korea, Iran,
Lebanon, Darfur, and the Middle East. She said the UNSC is
a serious body that we do not want to become unworkable.
She asked Kalla to consider the implications of having
Venezuela on the Council.


13. (C) Kalla replied that he appreciated hearing the
Secretary's views. Indonesia agrees it is important that
the Security Council be effective and able to take decisive
action. Wirajuda added that Indonesia had come to an
"understanding" with Guatemala. Ambassador Pascoe noted
that Indonesia also embodied the model of a responsible,
potential UNSC member.

Encouraging Moderate Islam
--------------


14. (C) The Secretary concluded by praising Indonesia's
active role in countering extremist ideology. Kalla
replied that there are moderates and radicals everywhere,
including in Indonesia. Conflict, he said, is what gives
extremism the fertile ground to develop, pointing to
Indonesia's experiences in Aceh, Sulawesi, and elsewhere.
He said it was obvious that people needed greater
educational and economic opportunities in order to not be
attracted to extremist ideology. Jakarta was working hard
to improve education, to reduce the gap between
opportunities at the national and the village levels. The
Secretary praised these efforts and said Indonesia has the
advantage of being a democracy, where people have moderate,
political routes to solving problems. She recounted her
visit to a madrassa in Indonesia where modern education
easily coexisted with fidelity to Islam. She thanked the
Vice President for Indonesia's efforts and said moderation
must come from within the Muslim world. Kalla said people
must know they have a way to improve their lives.


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