KEY CABINET OFFICIAL SEEKS TO EXPAND BILATERAL

C O N F I D E N T I A L JAKARTA 001636 SIPDIS DEPT FOR EAP, EAP/MTS, EAP/MLS NSC FOR EPHU E.O. 12958: DECL: 08/28/2018 TAGS: ID PGOV PREL SENV SUBJECT: KEY CABINET OFFICIAL SEEKS TO EXPAND BILATERAL COOPERATION REF: JAKARTA 755 Classified By: Ambassador Cameron R. Hume, for reasons 1.4 b+d ¶1. (C) Summary: State Secretary Hatta Rajasa offered recommendations on ways to strengthen U.S.-Indonesian bilateral relations, particularly through the proposed Defense Cooperation Agreement and an umbrella science and technology agreement, during an August 27 meeting with Ambassador Hume. Rajasa also offered to raise with President Yudhoyono and Parliament the importance of Parliament's endorsement of the Cape Town Treaty in order to secure Export-Import Bank financing. Rajasa noted the political season in both the U.S. and Indonesia and said that the 2009 Indonesian election will be much closer than in 2004. (See septel regarding Rajasa's support for a President Yudhoyono reply to the recent Senator Leahy letter on military reform.) End Summary. Support for Formalizing Bilateral Cooperation -------------- ¶2. (SBU) Rajasa began the meeting by passing along President Yudhoyono's personal message that U.S.-Indonesian relations are strong. Ambassador Hume noted the positive relations and gradual improvement. The Ambassador asked Rajasa how the U.S. and Indonesia could find ways to expand the bilateral relationship. Rajasa supported moving forward with the Indonesian-drafted Defense Cooperation Agreement and making an initial draft of an umbrella science and technology agreement. On the Defense Cooperation Agreement, Rajasa said that he would raise this proposed agreement quietly with members of Parliament. Rajasa, a former Minister for Science and Technology, underscored the importance of U.S. cooperation on a range of science and technology issues. Ambassador Hume said that the Coral Triangle Initiative and upcoming World Oceans Conference are opportunities to demonstrate the improving U.S-Indonesian cooperation on science and technology. Pledge to Seek Parliament Endorsement of Cape Town Treaty -------------- -------------- ¶3. (SBU) Ambassador Hume raised the importance of Parliamentary endorsement of the Cape Town Treaty to permit concessional Export-Import Bank financing with U.S. aviation companies, particularly the proposed Lion Air deal with Boeing (reftel). Rajasa said that the GOI ratified the Cape Town Treaty through Presidential decree. Ambassador Hume noted that Parliamentary endorsement of this ratification was needed by the Export-Import Bank to avoid potential legal disputes due to conflicting executive and legislative interpretations of aviation legislation. Rajasa, Minister of Transportation before becoming State Secretary, offered to raise this issue with the President and Parliamentary leaders. Interest in Elections in U.S. and Indonesia -------------- ¶4. (C) Rajasa noted that Indonesians are watching very closely the U.S. presidential election. On the 2009 Indonesian elections, Rajasa said that the presidential election would be closer than the 2004 elections due to a stronger performance by Megawati Sukarnoputri. The upcoming political season will be a "year of politics" and quite "noisy," as is common in democratic countries, according to Rajasa. HUME