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Cablegate: Yudhoyono Shares His Vision for Indonesia In

VZCZCXRO5111
OO RUEHDT RUEHPB
DE RUEHJA #1360/01 2301100
ZNR UUUUU ZZH
O 181100Z AUG 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3089
INFO RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE PRIORITY
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC
RHEFDIA/DIA WASHINGTON DC

UNCLAS SECTION 01 OF 02 JAKARTA 001360

SIPDIS

DEPT FOR EAP, EAP/MTS, EAP/MLS, EAP/RSP
NSC FOR J. BADER

E.O. 12958: N/A
TAGS: PGOV PREL ECON KDEM ID
SUBJECT: YUDHOYONO SHARES HIS VISION FOR INDONESIA IN
NATIONAL DAY SPEECH

REF: JAKARTA 1352 AND PREVIOUS

1. (SBU) SUMMARY: President Yudhoyono's August 14 National
Day Address showed a confident leader on the cusp of his
second and final term of office who sees his nation at the
launching point for greater things. The broad vision for
Indonesia Yudhoyono laid out corresponds in many ways to the
contents of the Comprehensive Partnership and may offer
opportunities for an ambitious agenda if President Obama
visits in the fall. Yudhoyono sketched out a nationalist
economic policy that downplayed the role of exports for
economic growth. However, he encouraged Indonesia to produce
the technology and entrepreneurs necessary for the country to
compete and benefit from the global economy. Yudhoyono also
reinforced his commitment to fight terrorism. END SUMMARY.

YUDHOYONO'S VISION: A SELF-RELIANT BUT COMPETITIVE DEMOCRACY

2. (SBU) In his August 14 National Day speech, with his
re-election victory finally confirmed, President Yudhoyono
laid out his vision of where Indonesia should be in the year
2025. Indicating that he views the current juncture as a
turning point for Indonesia, Yudhoyono began by extolling
Indonesia's democratic progress since independence, and in
particular during the decade of "reformasi" following the
fall of Suharto. He noted that few observers in 1998 would
have predicted that Indonesia would become the stable,
unified democratic state it is today.

3. (SBU) Yudhoyono highlighted poverty alleviation and
anti-corruption efforts, central planks of his re-election
campaign, as his administration's top achievements. He noted
that in 2004, Indonesia was at the bottom 10 of the
Transparency International ranks, and it is now 55 from the
bottom. He also lauded Indonesia's military reform and rule
of law as bulwarks of the democratic state.

4. (SBU) Looking forward, Yudhoyono projected a bigger role
on the world stage for Indonesia as the world's third largest
democracy, a bridge between Islam and the West, a bridge for
a consensus on climate change, and as the largest economy in
Southeast Asia. In order to achieve that role, Yudhoyono
said there remains much work on transparency, military
reform, the rule of law, educational advancement, and
environmental protection. These are all goals that tie in
well with the Comprehensive Partnership. Yudhoyono's
ambitious vision may also provide opportunities for
groundbreaking achievements in moving the bilateral
relationship forward if President Obama visits in the fall.

A COUNTRY WITH MANY FRIENDS AND NO ENEMIES

5. (SBU) Yudhoyono is well known for accommodating political
rivals, and he gave conciliatory nods to his opponents in the
July 8 presidential election, Megawati and Vice President
Kalla. He noted Megawati's contribution to Indonesia's
democratization, and, in a piece of rhetoric that drew cheers
and applause from his audience, he concluded his speech with
a proverb from Kalla's ethnic group, the Buginese.
Yudhoyono's desire to mend fences at home was reflected in
his vision of an "all directions foreign policy" that has "a
million friends and zero enemies."

ECONOMIC NATIONALISM COMBINED WITH GLOBALIZATION

6. (SBU) On the economy, Yudhoyono played a balancing act
with nods toward both economic nationalists still smarting
from the IMF years and internationally trained economists,
such as his vice presidential running mate Boediono. His
speech indicated that the lesson Yudhoyono has learned from
the current global financial crisis is that Indonesia should
continue to be economically self-reliant. Yudhoyono said
that Indonesia must not rely on exports for economic growth,
and that "in essence, we must not be ensnared, surrender to
and be held hostage by fundamental capitalism." He also
stressed, however, that Indonesia should take advantage of
economic globalization and develop a comparative advantage on
the basis of technological innovation and entrepreneurship.

STANDING UP TO TERRORISM

7. (SBU) Yudhoyono's remarks on terrorism were one of the
most anticipated parts of his speech, and generated the
strongest media reaction. He defiantly declared that
Indonesia would not be defeated in the fight against
terrorism, and urged Indonesians to become directly involved

JAKARTA 00001360 002 OF 002


and "unite in the fight against the acts of terrorism . . .
and provide information on perpetrators. . .who hide in the
midst of (their) communities." Yudhoyono decried the July 17
terrorist attacks, which came at a time when Indonesia had
made big strides in improving the nation's security. He
vowed to both attack terrorism at its roots through poverty
alleviation and to take measures to prevent and eradicate
terrorism.
HUME

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