LEGISLATORS ASK FOR U.S. -INDONESIA COOPERATION AT

UNCLAS SECTION 01 OF 02 JAKARTA 001399 SIPDIS DEPT FOR EAP, EAP/MTS, EAP/MLS, EAP/RSP, H NSC FOR J. BADER E.O. 12958: N/A TAGS: PGOV KDEM ECON ID SUBJECT: LEGISLATORS ASK FOR U.S. -INDONESIA COOPERATION AT LOCAL LEVELS REF: A. JAKARTA 172 ¶B. JAKARTA 2195 ¶C. JAKARTA 1372 AND PREVIOUS ¶1. (U) SUMMARY: Indonesian legislators told us at a DCM-hosted lunch that the key to strengthening U.S.-Indonesia relations was cooperating on issues confronting their constituents at the local level. A multi-partisan group of women legislators met with us on August 11 to discuss bilateral relations and the forthcoming Comprehensive Partnership. Among the key issues of concern were regional economic empowerment, improvements in education, and good governance. U.S. business practices in Indonesia, Mission activities, and U.S. foreign policy all directly impact our bilateral relations, they said. ENGAGING THE 2009 PARLIAMENTARIANS ¶2. (U) The DCM opened his lunch in honor of Senator Lugar's Senior Staffer, Keith Luse, by eliciting ideas from the legislators on the forthcoming U.S.-Indonesia Comprehensive Partnership. Eight women legislators from six political parties attended. Half were newly elected during the April 9 parliamentary elections and half were incumbents. We explained the Embassy's goal of creating stronger connections between the incoming parliamentarians and the USG, both at the Embassy and U.S. congressional levels. The legislators responded positively, asking for continued engagement, saying: "if you invite us to Independence Day Events, it's nice but these substantive discussions are even better." U.S. BUSINESS PRACTICES IMPACT CONSTITUENTS ¶3. (SBU) Many of the legislators noted the impact that U.S. business practices have on their constituents and consequently on how the U.S. is perceived in Indonesia. They asked us to urge U.S. businesses to implement standardized practices of local employment and benefit packages. Practices currently vary, they said, by region and company. One legislator claimed a U.S. oil company in her region does not employ many locals. This company only talks with the bureaucratic elite, not the locals, about projects such as pipelines which crosscut villages. They thus fail to get crucial buy-in from the villagers. The legislator stated that this creates resentment among constituents and can cause legislative resistance to foreign investment. ¶4. (SBU) U.S. interests would be better served, another legislator pointed out, by following the example of a foreign company in her district that has a large geothermal plant. This company provides employment, education and social benefits for locals as part of its corporate social responsibility practices. This gives the employees a sense of belonging and acceptance of the company as their own. Keith Luse noted that he would convey these concerns to Senator Lugar. He added that Indonesian trade union leaders had told him that American companies were among the best employers in Indonesia. PERCEPTIONS THAT U.S. SUPPORTS PAPUAN INDEPENDENCE POTENTIALLY DAMAGING ¶5. (SBU) The parliamentarians also raised the sensitive issue of whether the United States government supports Papuan separatism. One legislator declared: "Indonesia, like the U.S., is a multicultural society. We believe this makes the U.S. strong, and we see the U.S. as a model for us. I heard that President Obama supports Indonesian unity but Congress does not. Why?" ¶6. (SBU) Keith Luse explained that the U.S. supports the territorial integrity and unity of Indonesia. He does not believe the U.S. Congress would pass legislation endorsing Papuan independence, and said that his boss, Senator Lugar, is opposed to it. He acknowledged, however, that Congressman Faleomavaega had proposed language on Papua which had "caused doubts" for some people. (Note: The language in question had compared the situation in Papua with that of East Timor before the latter's independence from Indonesia. Many Indonesians regarded this as a de facto endorsement of Papuan independence.) Luse explained that Papua is of particular interest to Congressman Faleomavaega, who is from American Samoa. His proposed legislation on Papua was later withdrawn. The DCM pointed out that if the Indonesian government eases travel restrictions to Papua, this would JAKARTA 00001399 002 OF 002 help increase transparency and trust. EDUCATION AND RELIGIOUS FREEDOM PRODUCTIVE ISSUES FOR COOPERATION ¶7. (SBU) The legislators also raised educational development as an area of shared concern and cooperation with the U.S. The DCM suggested that education was possibly the most productive area for the U.S to contribute to Indonesia's development through exchanges and long term university partnerships. One legislator asked for more teacher exchanges to the U.S. Several expressed their appreciation for USG-funded National Democratic Institute (NDI) training, saying that local NDI visits and training were particularly helpful. They also asked for help with English training. However, one noted that visa processing time impeded travel to the U.S. for those with certain names and requested our help in solving this issue. ¶8. (SBU) The legislators agreed that there was much common ground for cooperation on issues central to both U.S. and Indonesian concerns. For example, they were also committed to guaranteeing equal rights to education and religious freedom by continuing the historically tolerant traditions of Indonesia's pluralistic society. They are also hoping to improve governance practices and reduce corruption and money politics. The legislators ended by welcoming more such discussions with the U.S. Mission and Congress, stating that "MPs can be a bridge" between the U.S. and Indonesia. ¶9. (SBU) This message has been cleared by Staffdel Luse. HUME