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Cablegate: Sby Lays Out His Priorities to Us-Asean Business Council

VZCZCXRO1509
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #3010 3020417
ZNR UUUUU ZZH
R 290417Z OCT 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 6831
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHKL/AMEMBASSY KUALA LUMPUR 2400
RUEHBK/AMEMBASSY BANGKOK 8210
RUEHGP/AMEMBASSY SINGAPORE 6197

UNCLAS JAKARTA 003010

SIPDIS

SINGAPORE FOR SUSAN BAKER

SIPDIS
SENSITIVE

DEPT FOR EAP/MTS, EAP/RSP, EB/TPP, EB/TPP/BTA
COMMERCE FOR SBERLINGUETTE
USTR FOR BWEISEL
TREASURY FOR IA-BAUKOL

E.O. 12598: N/A
TAGS: EINV ECON ETRD PREL ID
SUBJECT: SBY LAYS OUT HIS PRIORITIES TO US-ASEAN BUSINESS COUNCIL


1. (SBU) Summary. President SBY identified climate change,
investment and democracy as key priorities in public remarks
delivered at a gala dinner hosted by the US-ASEAN Business Council
on October 25th. SBY highlighted the COP-13 conference in Bali as a
"top priority" that he hoped would result in a "Bali Roadmap" for
achieving a global framework on climate change. He also outlined
Indonesia's efforts to enhance its economic competitiveness. He
expressed satisfaction with U.S.-Indonesian relations and added that
Indonesia is "actively recalibrating this important partnership" to
put it on a higher level. End Summary.

Climate Change a Top Priority
-----------------------------
2. (SBU) President SBY described climate change as "at the top of
my Government's agenda" and highlighted Indonesia as host of the
United Nations Conference on Climate Change in Bali in December. He
expressed the goal that the conference will result in a "Bali
Roadmap" that could serve as a blueprint to achieve a post-2012
global framework on climate change. He also reaffirmed Indonesia's
commitment to addressing deforestation and expectations that
forestry issues be integrated into any post-2012 framework.

SBY Wants More Investment
-------------------------
3. (SBU) SBY discussed Indonesia's efforts to enhance its
competitiveness, and attached great importance to attracting new
investment. He also emphasized growth with equity, explaining that
economic growth must have a tangible impact on public good. SBY
touted Indonesia's strong macroeconomic condition and listed off
reform initiatives including the new investment and customs laws as
well as development of special economic zones (SEZs) and reduction
of the number of days to start a business. He also reaffirmed his
commitment to increasing spending on health and education while
maintaining a balanced budget.

Democracy On the Move
----------------------
4. (SBU) The President said that that "democracy is taking roots
locally" and applauded the success of local elections throughout the
country. He described his ambition to change the orientation of
Indonesian politics from the political elite to "more around the
people, the way a democracy should be." He highlighted reform
efforts including the "strongest anti-corruption drive in our
history." The President also referenced his own strong electoral
mandate resulting from the world's largest and most complex
election.

US-Indonesian Relations Strong
------------------------------
5. (SBU) SBY's remarks were mostly optimistic and forward thinking
however he did warn of "tough days ahead" in the global economy
exacerbated by skyrocketing oil prices as well as turbulence in
global financial markets resulting from the sub-prime mortgage
problem. He expressed satisfaction with U.S.-Indonesian relations
describing it as "solid and stable", adding that Indonesia is
"actively recalibrating this important partnership" to put it on a
higher level.

HUME

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