(U) Secretary Clinton's February 18, 2009

C O N F I D E N T I A L SECTION 01 OF 05 PARTO 022610 SIPDIS E.O. 12958: DECL: 02/19/2019 TAGS: PREL PGOV OVIP CLINTON HILLARY KGHG ID SUBJECT: (U) Secretary Clinton's February 18, 2009 conversation with Indonesian Foreign Minister Wirajuda ¶1. (U) Classified by: Paul Wohlers, Deputy Executive Secretary, S/ES, Department of State. Reason 1.4.(d). ¶2. (U) Thursday, February 18, 2009; 4:15 p.m.; Jakarta, Indonesia. ¶3. (U) Participants: U.S. The Secretary Ambassador Cameron R. Hume A/S Christopher R. Hill, EAP Lt. Gen. Paul J. Selva, Assistant to the Chairman of the Joint Chiefs of Staff Todd D. Stern, Special Envoy for Climate Change Ambassador Jeffrey A. Bader, NSC Huma Abedin, Deputy Chief of Staff Jacob J. Sullivan, Deputy Chief of Staff Robert Wood, Acting Spokesman Daniel E. Turnbull, Embassy Jakarta (notetaker) INDONESIA Foreign Minister Wirajuda Vice Minister Triyono Wibowo Ambassador Retno Marsudi Ambassador Sudjadnan Djauhari Oratmangun, Director General Andri Hadi, Director General Dienne H. Moeharia, Inspector General Dr. Dino Patti Djalal, Presidential Spokesman Artauli Tobing, Director General Bunyan Saptomo, Director Teuku Faizasyah, Spokesman Cicilia Rusdiharini, Deputy Director (notetaker) ¶4. (C) SUMMARY. During a February 18 meeting, the Secretary and Indonesian FM Hassan Wirajuda agreed to pursue a "comprehensive partnership" that encompassed all aspects of the relationship. Recent steps in that direction included agreement on the return of the Peace Corps to Indonesia, renewal of the Fulbright agreement on educational exchanges, cooperation on Indonesia's Compact eligibility status under the Millennium Challenge Corporation, and U.S. readiness to present a draft Science and Technology agreement for negotiation. ¶5. (C) SUMMARY cont'd: The Secretary praised Indonesia's progress on democracy and human rights and Indonesia's leadership in promoting these values in the region. She said the Obama Administration wanted to engage more actively with ASEAN. Wirajuda said the ASEAN Charter entailed a commitment to promote democracy and human rights that was binding on Burma. On Iran, he called for a broader dialogue including Arab and Muslim countries and member states of the Nuclear Nonproliferation Treaty (NPT). The two also discussed cooperation on climate change and bilateral health cooperation. END SUMMARY. ¶6. (C) In a brief private meeting before the main �A;discussion, Wirajuda welcomed the Secretary and asked if there was any special message from Washington. The Secretary said President Obama had fond memories of his years in Indonesia whose diversity and culture had greatly impressed him. The United States hoped for a more comprehensive partnership built on the work already PARTO 00000010 002 OF 005 done in such fields as counter-terrorism. There should be a broader engagement in education, the environment, and health care. The Secretary wanted to hear how Indonesia would structure work on such a relationship. Wirajuda said Indonesia wanted to build a comprehensive partnership. He said President Yudhoyono welcomed the Secretary's visit and looked forward to meeting her. -------------- A DEMOCRATIC INDONESIA -------------- ¶7. (C) In the larger meeting, Wirajuda assured the Secretary that Indonesia stood ready to work with the United States on bilateral, regional, and global issues. Bilateral cooperation had been growing steadily and promised to become even stronger with the Obama Administration. Noting the presence of three women in his team at the meeting, Wirajuda said half of senior Indonesian officials would be women in 50 years. This was not the result of affirmative action but of open, non-discriminatory recruitment policies. Wirajuda said Indonesia had transformed in the past decade to a vibrant democracy that respected human rights and the rule of law. Some still had the mistaken impression that Indonesia had not changed from the past. The Indonesia-sponsored Bali Democracy Forum brought together democracies and aspiring democracies to share experiences. It was the first effort of its kind in Asia. -------------- MODERATION AND DIVERSITY -------------- ¶8. (C) Wirajuda said Indonesia had partnered successfully with the United States to combat terrorism. At the same time, Indonesia professed a moderate form of Islam. Indonesia had proven that Islam, democracy, and modernity could coexist. Indonesia stood at a crossroads of civilizations and, like the United States, was a "melting pot" of ethnic groups and cultures that celebrated diversity. Indonesia was ready to play a role in bridging relations between the West and Islam. -------------- THE ECONOMIC CRISIS -------------- ¶9. (C) Economically, Wirajuda continued, Indonesia had recovered from the crisis of 1997-98, but now had been hit by the global economic crisis. The Indonesian economy had grown by six percent in recent years and was still projected to attain 4.5 percent growth in 2009, despite the global downturn. Still, Indonesian exports were down 38 percent from a year ago. In need of assistance in overcoming the global economic slowdown, Indonesia sought U.S. support for contingency financing through the World Bank-led effort in which the Asian Development Bank (ADB),Japan, and Australia were participating. (Note: The U.S. Treasury Department previously turned down an Indonesian request for U.S. participation in this effort as a bilateral donor.) Indonesia also sought access to a Federal Reserve currency swap line, even if in only half the amount that Singapore, Mexico, and Brazil had received. That would save Indonesia from having to borrow on the open market. PARTO 00000010 003 OF 005 ¶10. (C) Wirajuda said Indonesia's widespread poverty was one of the biggest challenges to making democracy work. Prosperity had to go hand in hand with democracy in order for democracy to survive in the long run. -------------- COMPREHENSIVE PARTNERSHIP -------------- ¶12. (C) Wirajuda welcomed the new administration's commitment to enhance cooperation. Indonesia wanted to deepen cooperation in all major aspects of the relationship: environmental protection, climate change, trade and investment, democracy, education, health, regional security, counterterrorism, and people-to- people contacts. This would be a "comprehensive partnership" in which Indonesia and the United States both would play equal roles. This partnership could be announced in a joint statement of both countries' leaders. -------------- SECRETARY PRAISES INDONESIAN LEADERSHIP -------------- ¶13. (C) The Secretary thanked Wirajuda for his "comprehensive overview." She conveyed warm personal greetings from President Obama who, she said, had fond memories of his early years in Indonesia, where he had learned the importance of harmonious relations among religions and diverse ethnic groups. The Secretary applauded Indonesia's example of highly qualified women in government. The United States wanted to broaden and deepen its cooperation with Indonesia through a "comprehensive partnership" covering all aspects of the relationship. She praised the Bali Democracy Forum and Indonesia's role in bringing together countries from around the region to promote this fundamental shared value. This initiative had signaled to the rest of the world Indonesia's leadership. She accepted Wirajuda's point that democracy and prosperity needed to develop in parallel. -------------- AGREEMENTS SHOW COOPERATION -------------- ¶14. (C) The Secretary noted that a number of important agreements had been concluded in the run-up to her visit. These were a concrete demonstration of growing cooperation: - The Peace Corps would return to Indonesia; - The AMINEF Agreement for Fulbright educational exchanges had been renewed; - Indonesia had achieved Compact eligibility status under the Millennium Challenge Corporation, and a team would arrive this spring to begin work on a Compact; and - The United States was ready to present a draft proposal for a Science and Technology Agreement. -------------- INDONESIAN EFFORTS ON BURMA -------------- ¶15. (C) The Secretary said the United States wanted to PARTO 00000010 004 OF 005 consult with Indonesia in addressing other challenges, such as Burma. It was important to improve the lives of the Burmese people and to create room for reforms. Burma sanctions had not worked, and the United States wanted to try other approaches. Wirajuda noted that in 2002 Indonesia had begun to press for ASEAN dialogue on political issues, such as Myanmar. But engagement had not worked either. Regional economic integration had limited value if not accompanied by progress on human rights and democracy. This increasing engagement on political issues had become enshrined in the ASEAN Charter. ¶16. (C) Wirajuda said Myanmar was difficult. The ruling regime had rejected the constructive efforts of regional institutions. The Charter, however, now entailed a legal commitment to promote democracy and human rights. Myanmar would hold multiparty elections next year. However, issues of national sovereignty and political stability also had to be considered. ASEAN had continued to discuss Myanmar in its meetings, and Indonesia was actively trying to engage neighboring countries, including China and India, in dialogue with the regime. -------------- CLIMATE CHANGE -------------- ¶17. (C) The Secretary said global climate change was another challenge that offered opportunities for cooperation, particularly in reforestation. Wirajuda noted that Indonesia had organized the Bali Conference on climate change in late 2007, which had produced a "roadmap" for a process to replace the Kyoto Protocol. This process would continue in Copenhagen. Indonesia hoped the United States would sponsor a high-level meeting in this process, such as it had hosted on the margins of the United Nations General Assembly in 2007. Indonesia appreciated U.S. support on reforestation and forest protection. Indonesia was cooperating with other countries in the region and was planning to organize a meeting of 34 rain-forest countries, Wirajuda added. -------------- EAST-ASIAN INTEGRATION -------------- ¶18. (C) Wirajuda noted the ASEAN Charter had identified three main pillars for integration: political-security, economic, and social-cultural. Only six years remained to achieve the target of full integration by 2015. This integration would put ASEAN in "the driver's seat" for broader East Asian integration. A web of agreements had led to creation of the East Asian Summit (EAS),and the region would soon begin talking about an East Asian Community. This could form the building blocks for a free-trade area. In view of China's growing power, Indonesia had insisted on drawing India, Australia, and New Zealand into the EAS and continued to work closely with other countries in the region. Wirajuda welcomed U.S. thinking on these developments. ¶19. (C) The Secretary hoped the expanded ASEAN outreach would include other Asia-Pacific countries in its free- trade area and that political cooperation would advance PARTO 00000010 005 OF 005 democracy. She said the Obama Administration had a positive view of these developments and wanted to develop stronger cooperation with the region. She intended to make proposals along these lines at her upcoming meeting at the ASEAN Secretariat. The United States wanted to be an effective partner with ASEAN in realizing ASEAN's strategic vision and would work closely with Indonesia. -------------- MIDDLE EAST AND IRAN -------------- ¶20. (C) The Secretary noted that one of the first steps of the Obama Administration was to appoint a Special Envoy for the Middle East. The United States was re- engaging with the Middle East and wanted to advance the peace process. Washington had supported humanitarian aid for Gaza and was committed to the two-state solution. The Secretary said Washington sought Indonesia's help in convincing Iran to abandon its pursuit of nuclear weapons. Other states in the region were deeply concerned about Iran's program. Indonesia had a position of leadership in this area and considerable influence with Iran, the Secretary pointed out. ¶21. (C) Wirajuda noted that Indonesia had participated in the Annapolis Conference and the Paris Conference and supported a two-state solution. Indonesia had provided practical assistance through the Asia-Africa Conference on Palestine. Although more sympathetic toward Fatah politically, Indonesia promoted dialogue and reconciliation between Fatah and Hamas in the interests of the Palestinian people. ¶22. (C) On Iran, Wirajuda said it was odd that the various international efforts included no representative of the Arab League or the Islamic world. He suggested the dialogue with Iran should include some state parties of the Nuclear Nonproliferation Treaty (NPT). Indonesia was "a critical friend" of Iran, Wirajuda said, conveying at senior levels Indonesia's opposition to any development of nuclear weapons and urging Iran to be more forthcoming with international efforts. Indonesia welcomed the Obama Administration's willingness to engage in dialogue with Iran. Indonesia stood ready to help. -------------- BILATERAL HEALTH ISSUES -------------- ¶23. (C) Wirajuda expressed hope that Indonesia and the United States would reach agreement regarding avian- influenza sample sharing. Multilateral negotiations were ongoing in Geneva, and Indonesia was ready to conclude a parallel bilateral arrangement with the United States. ¶24. (C) On the U.S. Naval Medical Research Unit (NAMRU- 2) in Jakarta, Wirajuda stressed the need for a new memorandum of understanding that was transparent and fair, and that provided equivalent benefits to both sides. CLINTON