EAST KALIMANTAN -- ENGAGING STUDENTS ON

C O N F I D E N T I A L SECTION 01 OF 02 JAKARTA 002828

SIPDIS

SIPDIS

DEPT FOR EAP, EAP/MTS, EAP/MLS, INR/EAP, EAP/PD
NSC FOR E. PHU

E.O. 12958: DECL: 10/05/2017
TAGS: PREL PGOV PINR KPAO ID
SUBJECT: EAST KALIMANTAN -- ENGAGING STUDENTS ON
U.S.-INDONESIAN TIES

REF: A. JAKARTA 2809


B. JAKARTA 2732

C. 06 JAKARTA 12031

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Classified By: Pol/C Joseph Legend Novak, reasons 1.4 (B)(D).


1. (C) SUMMARY: During an October 2-4 visit to the
resource-rich Indonesian province of East Kalimantan on
Borneo island, Mission team held a wide-ranging dialogue with
70 students at a local university. Emboffs used the occasion
to underscore the strength and vitality of U.S.-Indonesian
relations. Balikpapan--the commercial capital of the
area--has flourished in the post-decentralization era.
Observers attributed the region's success to the leadership
of a dynamic local mayor, who may plan to run for governor of
the province. END SUMMARY.

OUTREACH IN EAST KALIMANTAN


2. (U) On October 3, Poloff and Econoff addressed an
energetic group of approximately 70 students and faculty
members at Balikpapan University, a highly-regarded public
university. The Rector, Dr. Ellyano S. Lasam, told Emboffs
that it was the first such event with USG officials in the
school's history, expressing his hope that the discussion
would serve as the foundation for a long-term dialogue with
the Mission.


3. (U) During the event, Emboffs repeatedly emphasized the
multi-faceted nature of U.S.-Indonesian relations, stressing
the fact that counter-terrorism cooperation represents only
one component of a dynamic, expansive friendship between the
two countries. The students focused many of their questions
on USG anti-terrorism policy, and Emboffs worked to counter
misperceptions about this policy both globally and vis-a-vis
Indonesia. The students and faculty also articulated the
same types of concerns about USG policy in the Middle East
that have surfaced in other Mission outreach events (Refs
A-B).


4. (U) In response to a question about Indonesia on the world
stage, Emboffs argued that as the region's largest democracy,
Indonesia should play a more robust role in SE Asia on human
rights and democracy concerns. Specifically, Indonesia
should use its influence and stature to apply pressure on the
brutal regime in Burma. Pointing to Indonesia's presence on
the UN Security Council, Emboffs noted that Indonesia could
further burnish its international image by continuing to work
with the USG and others regarding Iran's nuclear program.
Over all, students and faculty clearly relished the
opportunity to engage directly in a substantive, good-natured
dialogue with Mission personnel.

MAYOR WITH A PLAN


5. (C) Poloff and Econoff visited Balikpapan, October 2-4.
Balikpapan, a city of approximately 600,000 people, is a
commercial hub on the eastern coast of East Kalimantan
province, by the Makassar Strait. As noted in Ref C, the
city is strikingly clean and well-organized and there is a
palpable air of affluence. (Note: See septel on
Balikpapan's commercial rise.) The city has repeatedly been
decorated regionally and nationally as one of Indonesia's
most livable cities and Balikpapan's overall renaissance has
turned it into arguably the country's foremost
post-decentralization success story. (Note: Indonesia began
the process of decentralization, or the devolution of power
from the central government directly to the sub-regional
governments, in 1999.) While there are many factors that
help account for Balikpapan's ability to thrive in the era of
regional autonomy, Mayor H. Imdaad Hamid is universally
recognized as the architect of the city's rise.


6. (C) According to Balikpapan-based consultant Parris
Paulus, Mayor Hamid succeeded where other district and city
leaders have failed because of his vision and clean
reputation. Paulus told Emboffs that Mayor Hamid rallied
support from all the major political parties and across the
city's many ethnic groupings by championing a pro-business

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agenda. On the Mayor's watch, Balikpapan has transformed
into East Kalimantan's "gateway city" for commerce and
tourism, and according to the city planning office, the
city's coffers have expanded twelve-fold since he first
assumed office six years ago. Mayor Hamid's accomplishments
have also been acknowledged by his peers, as evidenced by the
fact that he was selected to Chair the 99-member Indonesian
Council of Mayors.


7. (C) During an October 3 meeting, Mayor Hamid displayed
humility and a sense of purpose in acknowledging his city's
successes, while identifying many areas for improvement. He
identified his top priorities for the city as: population
control, reducing red tape, fighting corruption,
infrastructure development, human resource development, and
the protection of the environment. He stressed the
importance of maintaining good relations with both the
provincial and national governments, and argued that his
success could partially be explained by his willingness to
give deference to provincial authorities.

TO THE NEXT LEVEL?


8. (C) Despite his popularity, Mayor Hamid has stated
publicly that he is not interested in running for governor of
East Kalimantan in April 2008. In a colorful explanation of
his gubernatorial misgivings, he told Emboffs that he had
perfected the art of "playing badminton" as a Mayor, but
wasn't sure those capabilities would translate at the
provincial level, where he would have "to play tennis."
Nevertheless, Hamid has carved out a high-profile throughout
the province and Mission contacts in Balikpapan report that a
heavy Hamid recruitment effort for a campaign is already
underway. Agus Santoso of the Balikpapan local legislature
told Emboffs that the Indonesian Democratic Party - Struggle
(PDI-P) is close to bringing him on board as their candidate.
According to Santoso, who is also a member of PDI-P, Hamid
would be a favorite to win the race if he is ultimately
cajoled into running.
HEFFERN