DAS JOHN'S MEETING WITH DIRECTOR GENERAL FOR

C O N F I D E N T I A L SECTION 01 OF 02 JAKARTA 000726

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/13/2017
TAGS: PREL MARR PGOV PHUM ID
SUBJECT: DAS JOHN'S MEETING WITH DIRECTOR GENERAL FOR
DEFENSE STRATEGY DADI SUSANTO

JAKARTA 00000726 001.2 OF 002


Classified By: Political Officer Daniel Turnbull, reasons: 1.4 (b) and
(d).


1. (C) SUMMARY: Director General for Defense Strategy BG Dadi
Susanto told EAP DAS Eric John March 7 that defense spending
was still below the Indonesian military's (TNI) needs but was
the government's second-highest priority after education;
that the TNI was satisfied with the pace of
military-to-military cooperation with the U.S. and wanted to
return to a "fully normal" relationship; that maritime
security was Indonesia's top priority; and that Indonesia was
insisting on asserting its legal jurisdiction over visiting
soldiers in its draft Defense Cooperation Agreement with
Singapore. He said Indonesia wanted to be a "winner" by
upholding democracy, economic growth, environmental
protection and good governance. DAS John emphasized that it
was important to maintain a flow of good news and substantive
progress on TNI reform; that Indonesia should consider what
role it might play in Iraq; that the U.S. Congress and the
Administration would continue to pay close attention to
Papua, and would seek to work with
Jakarta to improve the welfare of the people of Papua. End
Summary.


2. (C) Susanto said the Defense Resource Management Study
(DRMS) process was moving ahead under the Director General
for Defense Planning RADM Yuendi. The Indonesian military's
resources remained limited and below the minimum necessary,
excluding purchases of new equipment. DEPHAN had requested
$7.8 billion for 2007 and had received less than $3.3
billion. This was up only slightly from the $2.8 billion
received in 2006. Education was the government's number-one
priority, but defense was just behind as number two.


3. (C) Emphasizing the TNI continued to make progress on
reform, Susanto cited President Yudhoyono's recent decision
to allow soldiers to be tried in civilian courts for
non-military offenses. Several laws and judicial codes
needed to be revised in the process, but the issue had in
principle been decided. DAS John said Indonesia had made
much progress in the past three years, but it was important
that the good news on TNI reform continue. In particular,
Indonesia needed to heed U.S. concerns about the promotion of
officers who had committed past human rights violations.


4. (C) Susanto responded that Indonesia wanted to get back to
a "fully normal" relationship with the U.S.. The perception
of the U.S. within the TNI had improved since the December
2004 tsunami while the general perception among the
predominantly Muslim public lagged behind. Washington could
improve this perception by relying more on the use of "soft
power." It should learn more about Islam and become more
sensitive to its customs, expectations and sensitivities.
Susanto said the TNI rank and file felt bilateral cooperation
was developing "fast enough" and welcomed the extensive menu
of activities and exchanges. The TNI would be able to "do
more for itself" in this cooperation as budgetary resources
improved.


5. (C) On Papua, DAS John said that both the Administration
and the new Congressional leadership were interested in
working with the GOI to improve the welfare of the Papuan
people. Susanto noted that "lots of money" was now flowing
to Papua. DAS John responded that it was also important to
improve local government and the distribution of central
government resources and services. Susanto said the GOI was
committed to improving the Papuan people's welfare and cited
the government's "5K" program of tackling poverty, lack of
education, underdevelopment, isolation and health problems.
The TNI's troops in Papua were mostly organic, with some
Kopassus troops and some external units along the border.
Troop levels were modest, since the public numbers usually
included administrative staff as well.


6. (C) Susanto said the TNI's "territorial system," which had
been in the process of dissolution, had been "reactivated"
after the second Bali bombing to help the police combat
terrorism. The NCOs present at the lower levels of this
system had only one role, however, which was intelligence
collection. They had proven effective in this role, tipping
off authorities to non-Indonesian terrorists hiding in a
mosque in one case, for instance. Being permanently resident
in the local communities, the NCOs were able to detect in
local residents' daily behavior evidence pointing to
non-local elements. This program had been so successful that

JAKARTA 00000726 002.2 OF 002


terrorists were no longer staying in the villages, he claimed.


7. (C) Indonesia's top priority for further bilateral
cooperation, Susanto said, was maritime security. This was
vital to Indonesia's efforts to control illegal logging,
mining and fishing. Another priority was human rights
training and inculcation of humanitarian precepts in TNI
thinking. Indonesia was cooperating on this with Germany,
Norway and other countries. The TNI's relationship with the
Indonesian National Police (INP) was satisfactory, although
an institutional rivalry was natural, given the INP's recent
separation from the TNI.


8. (C) As neighbors, Susanto said, Indonesia and Singapore
had to cooperate on defense. The two sides had reached
agreement on 13 of its 17 sections of a draft Defense
Cooperation Agreement, which he was co-chairing. Still in
dispute was the question of which country's jurisdiction
should prevail over for Singaporean troops on Indonesian
soil. Indonesia insisted that Indonesian law should prevail.


9. (C) DAS John noted that the annual Cobra Gold regional
military exercise in Thailand would proceed in 2007 and
welcomed the GOI's participation. Susanto drew a contrast
between the domestic situations in Thailand and Indonesia,
stating that Indonesia wanted to be a "winner" and understood
this could come only by Indonesia's pursuing democracy,
economic reform, environmental protection and good
government. These would all take time, however; Indonesia
would not change overnight.


10. (U) This message has been cleared with DAS John.
HEFFERN