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Cablegate: Discussing November 15 Summit with President

VZCZCXRO4414
OO RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #2058/01 3111006
ZNR UUUUU ZZH
O 061006Z NOV 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0564
RUEHLMC/MILLENNIUM CHALLENGE CORP PRIORITY 0097
RHEHNSC/NSC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHMFISS/DEPT OF ENERGY WASHINGTON DC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS PRIORITY
RUEHBJ/AMEMBASSY BEIJING PRIORITY 5583
RUEHNE/AMEMBASSY NEW DELHI PRIORITY 2395

UNCLAS SECTION 01 OF 03 JAKARTA 002058

SENSITIVE
SIPDIS

DEPARTMENT FOR E, EAP, EEB, OES
STATE PASS TO USAID FOR ANE AND EGAT
STATE PASS TO USTR
TREASURY FOR U/S MCCORMICK, M. NUGENT, T. RAND
COMMERCE PASS TO NOAA
SINGAPORE FOR S. BAKER

E.O. 12958: N/A
TAGS: ECON EFIN SENV ENRG KMCA PGOV PREL MCC ID
SUBJECT: DISCUSSING NOVEMBER 15 SUMMIT WITH PRESIDENT
YUDHOYONO

JAKARTA 00002058 001.2 OF 003


1. (SBU) SUMMARY: President Yudhoyono (SBY) wants Indonesia
to be part of the solution at the upcoming Summit on
Financial Markets and the World Economy. At SBY's request,
Ambassador Hume briefed him on summit preparations in a
meeting on November 5. SBY welcomed the G-20 Leaders format
and stressed his commitment to working together to stabilize
capital markets and restore confidence. He wants to keep the
real economy moving by maintaining open markets and promoting
regional and global trade and investment. He noted leaders
must consider changes to the existing financial architecture
to help prevent the recurrence of another serious financial
crisis. SBY also welcomed Ambassador's delivery of
Indonesia's Millennium Challenge Corporation 2009 Scorecard.
He conveyed his congratulations to the American people on the
election, remarking on the many lessons he had learned from
American democracy and his hope Indonesian people would learn
lessons on unity from the U.S. elections. SBY and Ambassador
Hume discussed environmental-related opportunities for SBY's
upcoming trip to Washington. Regarding difficulties
encountered by ExxonMobil in Indonesia, SBY said he would
task Minister of Energy and Mineral Resources Purnomo
Yusgiantoro to meet with the President of ExxonMobil. END
SUMMARY.

SBY ENGAGED AND FOCUSED ON FINANCIAL MARKETS SUMMIT
- - - - - - - - - - - - - - - - - - - - - - - - - -

2. (SBU) On November 5, at President Yudhoyono's request,
Ambassador Hume briefed on summit preparations and
objectives. Ambassador Hume said he was pleased the summit
included the G-20 group given the global impact of current
financial markets volatility. Indonesia's inclusion in the
summit is a testament to the transformation it has achieved
in the past decade, both of its system of government and of
its economy. Ten years ago, the world viewed Indonesia
through the lens of the famous image of IMF Managing Director
Camdessus standing over former President Soeharto as he
agreed to an IMF bailout of a collapsed economy. Today,
Indonesia is a democratic country showing real leadership and
taking serious decisions in tackling the challenges posed by
the current crisis. It is a reflection of a changed reality
that Indonesia will now take a seat at the table of global
leaders gathering to address the causes of the current global
economic crisis, actions taken in response and core
principles for reform. Indonesia has become a full partner
in this process, which is a tribute to the changes the
Indonesian people have worked so hard to achieve.

3. (SBU) Members of the G-20, including Indonesia, would be
well placed to address how the crisis is affecting developing
countries, including on issues such as trade finance.
Ambassador Hume said the summit was an opportunity for
leaders to reiterate their commitments to open markets,
acknowledge the critical roles of international financial
institutions (IFIs) in assisting affected countries, and
reaffirm development assistance commitments. He noted
leaders would task Finance Ministers and IFIs with developing
recommendations for further action, and that there were no
current plans for bilateral meetings on the margins of the
summit.

4. (SBU) SBY said the summit objectives were right and
welcomed the G-20 leaders format. SBY said participation of
both developed and developing countries was important and
Indonesia is committed to being part of the solution to the
current financial markets crisis. President Yudhoyono
expressed appreciation that summit timing facilitated his
APEC Summit participation. He advised he plans to arrive
Washington on the evening of November 13, and will also visit
Mexico and Brazil.

5. (SBU) SBY commented that during the recent ASEM Summit,
leaders appeared committed to making the Washington summit a
success. He had stressed in his statement Indonesia's desire
to coordinate efforts to stabilize and restore confidence in

JAKARTA 00002058 002.2 OF 003


capital markets. In his view, efforts were moving well on
this. He had also highlighted Indonesia's commitment to
ensuring that the real economy continues to advance. This
required avoiding protectionism, maintaining open markets and
continuing to promote both regional and global trade and
investment. Finally, he had noted in his statement that
leaders will need to consider possible changes to the
existing international financial architecture to help prevent
recurrence of another financial crisis and to ensure that the
architecture is fair to everyone.

6. (SBU) SBY briefed on his continued close cooperation with
Bank Indonesia, government ministries and the private sector
to take actions aimed at avoiding a crisis of confidence. He
outlined a number of policy responses taken, including
establishing a new Financial System Safety Net and increasing
deposit insurance guarantees. The Indonesian government
continued to monitor closely the policy responses of ASEAN
and others.

MCC 2009 SCORECARD: "MOTIVATES ME TO DO MORE"
- - - - - - - - - - - - - - - - - - - - - - -

7. (SBU) President Yudhoyono was pleased when the Ambassador
delivered Indonesia's MCC 2009 Scorecard, particularly when
Ambassador Hume pointed out the significant improveme nt in
Indnesia's anti-corruption indicator. Five years ago,
Indonesia ranked in the 11th percentile on contrl of
corruption, but now had reached the 56th pecentile. SBY
said he wants a clean government an has been working hard to
achieve it. The positve feedback the scorecard provided
"motivates meto do more," he said. Amb"assador Hume briefed
SY on the MCC process and advised him that Indonesi was on
the MCC Board's short list for consideraton as an MCC
Compact eligible country when the Bard meets in December.
Pointing to Indonesia's srong performance on its sc"orecard,
he voiced suport for Indonesia to be named Compact eligible.
SBY thanked Ambassador Hume for the briefing and alo
thanked him for his recent op-ed piece on Indoesia's
response to the financial crisis and its ontinuing reform
efforts.

U.S. ELECTIONS: COGRATULATIONS TO AMERICAN PEOPLE
AND LESSONS TO LARN FROM AMERICAN DEMOCRACY
- - - - - - - - - - -- - - - - - - - - - - -

8. (SBU) President Yudhyono expressed congratulations to the
American pople and to President-elect Obama. He said he had
made a public statement of congratulations to th Indonesian
press immediately prior to the meetin. He had seen both
candidates' speeches and beleved President-elect Obama's
speech would help t promote good relatio*ns and enhance
bilateral cooperation. He also noted hhe President-elect's
special relationship with Indonesia. Ambassador Hume thanked
President Yudhoyono for his expression of congratulations and
commented that he felt lucky to be an American. The gracious
speeches by both President-elect Obama and Senator McCain
were good lessons on U.S. democracy. SBY agreed, noting that
Senator McCain's speech had impressed him, as had Senator
Clinton's support for candidate Obama after a hard-fought
primary. SBY hoped the Indonesian people would learn lessons
from America about how to unite following elections.

OPPORTUNITIES FOR ENVIRONMENTAL ENGAGEMENT
- - - - - - - - - - - - - - - - - - - - -

9. (SBU) Ambassador Hume also briefed SBY on various
environment-related opportunities related to the May 2009
World Oceans Conference, hosted by Indonesia. Ambassador
noted U.S. government support of $32 million for the Coral
Triangle Initiative (CTI), an initiative conceived by SBY.
He advised that he was working to secure approval for NOAA's
most modern research vessel, Okeanos Explorer, to make its
maiden voyage to Indonesia at that time as a way to gain
maximum public attention to this important initiative. He

JAKARTA 00002058 003.2 OF 003


noted that the Smithsonian, several non-governmental
organizations and NOAA were all interested in CTI and
suggested that the Indonesian Embassy work with these groups
to organize an event while SBY was in Washington. Ambassador
Hume noted that it was good for Indonesia's leadership on the
environment to be recognized. SBY then tasked Foreign
Minister Wirayuda to instruct the Indonesian Embassy to
synchronize an event at the Smithsonian with his schedule,
which he noted would include a speech at USINDO on November
14.

10. (SBU) SBY said ASEM Summit participants in Beijing had
discussed the environment and climate change. He felt that
all leaders present were committed to making the Copenhagen
Climate Change Conference succeed. Statements by Chinese and
Indian leaders had been positive. Although many issues
remained to be settled following adoption of the Bali Roadmap
in December 2007, SBY expressed his hope that a post-2012
protocol could be reached. Focus needed to remain on
mitigation, adaptation and on a financing structure, and
"both developed and developing countries must do more," he
said.

EXXONMOBIL: CONVEYING MESSAGE ON DESIRE FOR TALKS
- - - - - - - - - - - - - - - - - - - - - - - - -

11. (SBU) At ExxonMobil's request, Ambassador conveyed
ExxonMobil's interest it talking to the government of
Indonesia regarding difficulties the company was encountering
in new production. The Ambassador noted that, as long-term
partners, Indonesia and ExxonMobil had an opportunity to
engage in a way which could increase investor confidence.
SBY noted that Indonesia needs significant cooperation
involving many partners in exploring and developing its South
China Sea resources. (Note: ExxonMobil's continued operation
of the Natuna Block D Alpha concession is currently in
question. End note) He advised that he would task Minister
of Energy and Mineral Resources Purnomo Yusgiantoro, who
would accompany him on his upcoming travel to the U.S. and
Brazil, with contacting ExxonMobil's president.


HUME

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