DCM TACKLES TOUGH PARTNERSHIP ISSUES WITH

UNCLAS SECTION 01 OF 02 JAKARTA 000056 SENSITIVE SIPDIS DEPT FOR EAP, EAP/MTS, EAP/MLS, EAP/RSP, EEB, OES NSC FOR D. WALTON STATE PASS TO USTR EHLERS AND WEISEL COMMERCE FOR 4430 NADJMI E.O. 12958: N/A TAGS: PREL PGOV TSPL TBIO EAID KGHG ECON KDEM KMCA MCC, ID, H, EINV SUBJECT: DCM TACKLES TOUGH PARTNERSHIP ISSUES WITH INDONESIA'S LEGISLATIVE LEADERSHIP REF: A. JAKARTA 0044 ¶B. JAKARTA 01866 ¶C. JAKARTA 00172 JAKARTA 00000056 001.2 OF 002 ¶1. (U) This message is Sensitive but Unclassified. Please handle accordingly. ¶2. (SBU) SUMMARY: Indonesia's new parliamentary commission leaders expressed concerns about our bilateral health cooperation and asked for more U.S. investment in a January 13 meeting with the DCM. The DCM asked if the GOI is committed to seizing the opportunities for further progress on bilateral issues such as education, science and technology and the environment. The legislative leaders were receptive to this message and willing to engage further. Engaging Indonesia's legislators is essential in moving forward our partnership. Informed legislators are less likely to push legislation which could be counterproductive to shared goals. END SUMMARY. DCM MEETS PARLIAMENTARY LEADERS ¶3. (SBU) DCM engaged in substantive discussions on January 13 with eight newly elected legislative leaders on a number of topics, most importantly health and trade and investment. The parliamentarians chaired or served as deputies on commissions dealing with foreign affairs, health, agriculture, trade, religion/women's empowerment, and finance. (Note: The Indonesian parliament has eleven commissions which are somewhat analogous to the U.S. House committees and subcommittees.) This was the first time that most of them had attended a USG-hosted event. MOVING FORWARD ON HEALTH COOPERATION ¶4. (SBU) DCM asked for Parliament's support to resolve the political challenges which are impeding bilateral cooperation on health issues. Noting that there had been no recent movement on creating the joint Indonesia-U.S. Center for Public Health and Biomedical Research Cooperation (IUC),he questioned whether the new Health Minister had not taken action because she faced pressure from the parliamentary health commission. ¶5. (SBU) In response, deputy chair of the health commission stated that a new civilian arrangement in which Indonesia and U.S. researchers transparently worked together would be welcome. The main sticking point, she thought, was the request for diplomatic status for the researchers. Another legislator expressed concern that employing Navy researchers in the IUC would tip public opinion against it. DCM assured the legislative leaders that, in an IUC as envisioned by negotiators as recently as September, 2009, U.S. Navy researchers would be under civilian authority and seek official status as administrative and technical staff. INCREASING TRADE AND INVESTMENT TIES ¶6. (SBU) The legislative leaders pressed for increased U.S. investment in Indonesia, especially in industries outside of mineral exploration and by small and medium U.S. businesses. The parliamentary leaders also asked for investment that would help build manufacturing and agricultural derivatives industries. EconCons suggested that through formalizing an OPIC agreement and opening discussions for a bilateral investment treaty, American investors would become more confident investing in Indonesia. The legislators expressed an interest in these initiatives. They also received positively the Mission's determination that a science and technology agreement be concluded in the near term with Indonesia. LOOKING AHEAD ¶7. (SBU) This substantive meeting with a broad range of Indonesian parliamentary leaders was a step toward engaging Parliament as a partner in expanding the comprehensive partnership. The legislators are particularly important partners in resolving the toughest bilateral issues because JAKARTA 00000056 002.2 OF 002 executive branch officials often will hesitate to move forward on issues which face entrenched parliamentary resistance. Mission's interagency Legislative Working Group will continue to support Mission's close engagement with Parliament as we pursue our Comprehensive Partnership goals. HUME