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 JAKARTA 00002828 001.2 OF 002 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 �0A;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 JAKARTA 00002828 002.2 OF 002 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