PM ABE VISIT AMPLIFIES POSITIVE TONE OF

C O N F I D E N T I A L SECTION 01 OF 02 JAKARTA 002321

SIPDIS

SIPDIS

DEPT FOR EAP, EAP/MTS, EAP/MLS, EAP/J, EAP/K, S/P, EB
DEPT PASS USTR

E.O. 12958: DECL: 08/23/2017
TAGS: PREL ECON UNSC ETRD ID JA
SUBJECT: PM ABE VISIT AMPLIFIES POSITIVE TONE OF
JAPANESE-INDONESIAN RELATIONS


Classified By: Pol/C Joseph Legend Novak for reasons 1.4 (b)(d).


1. (C) Summary: PM Shinzo Abe and President Yudhoyono signed
an Economic Partnership Agreement and issued a Joint
Statement on Climate Change during Abe's recent visit. Abe
appealed unsuccessfully for Yudhoyono's open support of
Japan's campaign for a permanent seat on the UNSC and its bid
to succeed Indonesia in a rotational seat in 2009. The visit
further enhanced the positive tone of Japanese-Indonesian
relations. The matter of Abe's political standing back in
Japan apparently did not impact the trip, although one
Japanese Embassy contact told Pol/C that Abe was distracted
and spent a lot of time focused on domestic politics during
breaks between meetings. End Summary.

Focus: Economic Cooperation
--------------

2. (SBU) Japanese Prime Minister Abe met with Indonesian
President Yudhoyono during Abe's August 19-21 visit to
Jakarta. The visit had a largely economic focus, yielding an
Economic Partnership Agreement (EPA) which included
provisions enhancing free trade and general economic
cooperation. This agreement, which took several years to
negotiate, was the highlight of the trip and received the
most press coverage.

Statement on Climate Change
--------------

3. (SBU) Abe and Yudhoyono also issued a Joint Statement on
Enhancement of Cooperation on Climate Change, Environment and
Energy. During his meeting with Yudhoyono, Abe also
explained details of his "Cool Earth 50" proposal. Yudhoyono
expressed support for the proposal, and said Indonesia would
work closely with Japan on this and other issues at the
upcoming Council of Parties (COP13) meeting regarding climate
change, which Indonesia will host in Bali in December.
Yudhoyono encouraged Abe to present his proposal personally
at that meeting.

UN Reform, N. Korea, Piracy
--------------

4. (C) Other items of note:

-- UN Reform: Abe sought to firm up previous Indonesian
indications of support for Japan's campaign for a permanent
seat on the UN Security Council through the G-4 Initiative
(Japan's joint effort with Brazil, Germany and India).
Yudhoyono was non-committal, noting that Japan qualified as a
potential candidate, but advising that the question be
considered in the context of overall UN reform. Yudhoyono
also demurred regarding Japan's bid to assume in 2009 the
non-permanent UNSC seat currently occupied by Indonesia for
the Asia region. (Note: Our Japanese contacts noted
parenthetically that Iran was competing for the same seat.)

-- North Korea: Abe elicited Yudhoyono's support for a
timely resolution of the North Korea nuclear issue and the
denuclearization of the Korean Peninsula. Abe also requested
Indonesian help in resolving Japan's long-standing dispute
with North Korea over that country's abduction of Japanese
citizens during the Cold War. Yudhoyono said Indonesia would
do "whatever it could" on these two issues, but offered no
concrete steps.

-- Piracy: Abe reiterated previous Japanese appeals for
Indonesia to support international efforts to increase
security in the Malacca Strait and other key waterways by
joining the Regional Cooperation Agreement on Combating
Piracy and Armed Robbery against Ships in Asia (ReCAAP).
Indonesia and Malaysia were the only major Southeast Asian
countries not to have signed the agreement. Yudhoyono agreed
on the importance of ensuring safe passage through the Strait
but gave no indication Indonesia was prepared to join the
agreement. (Note: Japanese Embassy contacts noted to us
Japan was in the process of procuring three patrol boats for
the Indonesian marine police to help the GOI better monitor

JAKARTA 00002321 002 OF 002


national and international waterways.)

-- 50 Years: The two sides agreed to designate 2008 as the
Year of Friendship between Japan and Indonesia, marking 50
years of diplomatic relations.

A Positive Tone
--------------

5. (C) Japanese-Indonesian relations traditionally have been
excellent and Abe's visit reinforced that tone. The
Indonesians are optimistic that the Economic Partnership
Agreement will reap big rewards in terms of investment,
although many observers question that assessment. Japanese
contacts tell us this will take some time and require a
general improvement of the investment climate. The matter of
Abe's political standing back in Japan apparently did not
impact the trip, although one Japanese Embassy contact told
Pol/C that the PM spent a lot of time focused on domestic
politics during breaks between meetings.
HUME