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Cablegate: Oecd Deputy Secgen Visits Indonesia

VZCZCXRO7396
RR RUEHCHI RUEHCN RUEHDT RUEHHM RUEHRN
DE RUEHJA #0722 1001050
ZNR UUUUU ZZH
R 091050Z APR 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 8617
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEATRS/DEPT OF TREASURY WASHDC
RUEHSS/OECD POSTS COLLECTIVE
RUEHNE/AMEMBASSY NEW DELHI 1723
RUEHBR/AMEMBASSY BRASILIA 0210
RUEHSA/AMEMBASSY PRETORIA 0277
RUEHBJ/AMEMBASSY BEIJING 4901
RUEHUL/AMEMBASSY SEOUL 4515
RUEHME/AMEMBASSY MEXICO 0076
RUEAIIA/CIA WASHDC

UNCLAS JAKARTA 000722

SIPDIS

SIPDIS

AIDAC

DEPT FOR EEB A/S SULLIVAN
DEPT FOR EEB/EPPD
DEPT FOR EAP/EP, EAP/RSP AND EAP/MTS
PARIS OECD FOR CURT STONE
SINGAPORE FOR BAKER
TREASURY FOR BIERY

E.O. 12598: N/A
TAGS: ECON PREL OECD ETRD ID
SUBJECT: OECD DEPUTY SECGEN VISITS INDONESIA

REF: STATE 6031; JAKARTA 238

1. Summary. The Organization for Economic Cooperation and
Development (OECD)'s Deputy Secretary General Mari Amano visited
Indonesia on April 3-4. Outreach efforts to Indonesia have been
very positively received by the Government of Indonesia (GOI). A
series of outreach visits in 2008 have also found resonance with
several OECD resident missions, which offered recommendations to
make OECD "Enhanced Engagement" successful here and are encouraging
the GOI's involvement. End Summary.

GOI on OECD: Very Positive
--------------------------

2. Embassy Economic officer attended a meeting with visiting OECD
Deputy Secretary General Mari Amano on April 4 in Jakarta. Amano
briefed resident OECD and other missions in Jakarta on progress in
"Enhanced Engagement" with Indonesia. Amano noted that his meetings
with the Government of Indonesia (GOI) were "very, very positive."
The team met with the key economic ministries and the Ministry of
Foreign Affairs. The visiting OECD delegation was pleasantly
surprised at the GOI's level of understanding of OECD issues. The
GOI also expressed appreciation of OECD's interest, giving the
impression that recognition of Indonesia was "long overdue."

Foreign Minister Supportive
---------------------------

3. Amano felt that Indonesia was still soul searching about its
global role and its continued position with regard to other
non-aligned nations. He expected the economic ministries to welcome
the OECD but was impressed with Foreign Minister Wirajuda's positive
and welcoming tone. Amano left Indonesia with the impression that
the GOI would soon decide to move forward with formal cooperation.
Potential areas of cooperation include anti-corruption.
Coordinating Minister for the Economy Boediono also expressed
interest in an investment climate review. A visit from the OECD
Secretary General is planned for July 9.

SIPDIS

Other Enhanced Engagement Outreach Visits
-----------------------------------------

4. On February 22, Mr. Gerry Antioch, Australian Treasury
representative to the OECD met with OECD and other interested
missions in Jakarta. The meeting had robust attendance from nearly
two dozen missions. Antioch discussed the possibilities for
Indonesia, noting that Coordinating Minister Boediono would have the
lead for the GOI.

5. On March 25, Andrew Dean, Deputy Director of the OECD Country
Studies Branch and his delegation briefed interested Embassies in
Jakarta on the economic assessment underway. The OECD will examine
drivers of growth specifically market competition and labor markets.
A product market regulation questionnaire will help develop a
foreign direct investment (FDI) restrictiveness indicator for
comparison with other countries. The OECD team had also carefully
examined studies done by the International Monetary Fund, the World
Bank, local economic think tanks and others. The OECD team urged
member missions to encourage GOI participation in the process to
understand how the OECD methodology could add value as distinct from
other studies. The Embassies of Mexico and South Korea to Indonesia
also said they would share with the GOI the benefits from their
early engagement with the OECD when their economies were much
smaller.

HUME

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