NEW G-20 SHERPA URGES ACTION AND COMMITMENT TO FIGHT

UNCLAS JAKARTA 000157 SIPDIS SENSITIVE DEPT FOR EAP/MTS E.O. 12958: N/A TAGS: EFIN PREL PGOV ID SUBJECT: NEW G-20 SHERPA URGES ACTION AND COMMITMENT TO FIGHT ECONOMIC CRISIS ¶1. (SBU) The credibility of the G-20 is at risk unless its members implement their commitments, according to Indonesia's new sherpa. Deputy Minister at the Coordinating Ministry for Economic Affairs Mahendra Siregar lamented that G-20 countries were unable to revive the WTO Doha round in December. He acknowledged that many G-20 countries, including Indonesia, had implemented seemingly protectionist policies contrary to their leaders' promises. In Indonesia's case there is a constant battle between economic technocrats and individual ministries headed by politicians looking at the April parliamentary elections, with the politicians often winning (see Jakarta 69 on Cabinet divisions over economic policy). ¶2. (SBU) Mahendra added that the April G-20 Summit should develop concrete steps to fight the global economic crisis. He noted that the first Summit was essential to demonstrate the Leaders' seriousness and to identify initial areas of work. But, in order to retain credibility, the G-20 must now show that it can act (he did not offer any specifics). ¶3. (SBU) Mahendra replaces Presidential adviser Chatib Basri as G-20 sherpa. Basri will take on the role of finance deputy. Ministry of Finance official Anggito Abimanyu, who served as finance deputy at the first Summit, will serve as Indonesia's point person on the France/Indonesia led G-20 working group on reforming the World Bank and regional development banks. HUME