U.S. BUSINESS COMMUNITY SURPRISED BY BOMBINGS,

UNCLAS JAKARTA 001267 SENSITIVE SIPDIS DEPT FOR DS, DS/IP/EAP, DS/ITA/EAP, DS/ATA AND DS/OSAC DEPT ALSO FOR P, M, E, CA, EAP, S/CT AND INR SURABAYA FOR CG AND RON PERKEL E.O. 12958: N/A TAGS: ASEC ECON EINV AMGT CASC ID SUBJECT: U.S. BUSINESS COMMUNITY SURPRISED BY BOMBINGS, COMFORTABLE WITH SECURITY SITUATION ¶1. (SBU) Senior representatives of the U.S. business community were surprised by the recent bombings. They view the bombings as an isolated event, not a signal of a long-term deterioration of the security situation in Indonesia. They stressed the vital nature of continued U.S. training and cooperation with Indonesian law enforcement and military to counter security threats. ¶2. (SBU) American Chamber of Commerce (AmCham) Indonesia officials told Embassy they strongly favored Embassy's security stance in the wake of the July 17 bombings of the JW Marriott and the Ritz-Carlton. The group, which met with Embassy officials on July 28, included James Castle, of Castle Asia, a two-time survivor of bombings of the JW Marriott, AmCham Indonesia President Joe Bartlett, and five other senior AmCham Indonesia officials, all long-time residents of Indonesia. AmCham leaders said they were surprised the recent attacks occurred, given real improvements in the government of Indonesia's capacity to counter terrorist threats in recent years. They agreed with Castle's assessment that such threats remain a risk of daily life everywhere. They view the security environment in Indonesia as generally good and said they had not deferred travel to Indonesia by family members. They strongly supported moving forward with visits by U.S. government officials and other delegations to advance cooperation with Indonesia on shared interests. Their bottom line: all governments face a real challenge in preventing a small, committed group of extremists from carrying out attacks, but cooperation and assistance can reduce those threats. They welcomed the DCM's confirmation that anti-terrorism training will continue, and strongly supported additional security cooperation with partners from the hotel community on training to improve capacity to face the threats to soft targets. They also urged that training be provided to all authorities with security responsibilities, including Kopassus. ¶3. (SBU) AmCham leaders told us Indonesian election results offered U.S. firms a unique opportunity to enter and/or to expand their presence in the Indonesian market. They said the recent visit of Ex-Im Board member Diane Farrell to Jakarta was a strong signal to the business community that the U.S. government was ready to step up engagement with Indonesia. The fact that she made the visit in the immediate aftermath of the July 17 attacks also signalled how the U.S. government stands with its partners in the face of shared security threats. AmCham leaders commented that initial signs are positive that President Yudhoyono may be able to appoint a more capable Cabinet in his second administration. They urged the U.S. government, in partnership with the U.S. business community, to take advantage of current opportunities to encourage President Yudhoyono to remove legal and regulatory barriers to foreign investment during his next administration. HUME