GOI SHOWS RENEWED INTEREST IN OPIC NEGOTIATIONS

UNCLAS JAKARTA 001254

SIPDIS
SENSITIVE

DEPT FOR EAP/MTS, L, EEB/IFD/OIA MCULLINAN
DEPT PASS OPIC
USTR FOR KEHLERS, BWEISEL

E.O. 12598: N/A
TAGS: ECON EINV ETRD ID

SUBJECT: GOI SHOWS RENEWED INTEREST IN OPIC NEGOTIATIONS

This cable contains an action request (paragraph 3)


1. (SBU) On Friday July 25, OPIC Acting General Counsel Robert
O'Sullivan completed a successful round of exploratory discussions
with Government of Indonesia (GOI) officials on updating OPIC's
Investment Support Agreement with Indonesia. GOI officials
requested OPIC to propose a revised version of the agreement
incorporating points raised in these discussions. Upon reviewing
the draft, the GOI will determine whether to enter into formal
negotiations with the U.S. to update the agreement. The GOI's lead
negotiator, DEPLU Director for North and Central American Affairs
Bunyan Saptomo, told O'Sullivan that the GOI would be prepared to
pursue an aggressive timetable of negotiations with the intent of
completing the agreement as a Comprehensive Partnership deliverable
for a likely U.S. Presidential visit in November.


2. (SBU) OPIC and GOI officials have agreed to a tentative
negotiation schedule in anticipation of an affirmative decision by
the GOI to formally enter Investment Agreement negotiations. OPIC
officials would be invited to Indonesia mid-August for the first
round of negotiations, followed by a visit of GOI officials to the
U.S. at the end of August. OPIC officials would return to Indonesia
in mid-September for a third (and possibly final) round. The
negotiations would likely focus on four general areas raised during
the exploratory talks: the foreign government approval process,
coinsurance, taxation and dispute settlement. Bunyan indicated that
the GOI would consider committing to an English-language version of
the agreement to expedite signing and avoid the need to certify
translated texts. O'Sullivan and Bunyan both agreed that based on
these exploratory discussions, U.S. and GOI positions on these
issues may be reconcilable.


3. (SBU) ACTION REQUEST: We encourage State/L to respond soonest to
inquiries from OPIC officials on the revised draft Investment
Support Agreement so as to expedite the GOI's decision process on
entering negotiations. Should the GOI and the U.S. successfully
complete this agreement, Post recommends OPIC consider hosting a
regional investment conference in Indonesia in Spring 2010. This
conference would could then be announced as a joint deliverable
along with the updated agreement as part of a possible U.S.
Presidential visit to Indonesia in November.


4. OPIC Acting General Counsel Robert O'Sullivan cleared on this
cable.

HUME