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Cablegate: Indonesia -- Realizing the President's Cairo Vision

VZCZCXRO9714
OO RUEHBC RUEHDA RUEHDBU RUEHDE RUEHDH RUEHDT RUEHGI RUEHJS RUEHKUK
RUEHLH RUEHPB RUEHPW RUEHROV RUEHTRO
DE RUEHJA #1840/01 3091042
ZNR UUUUU ZZH
O 051042Z NOV 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3730
INFO RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE PRIORITY
RUCNISL/ISLAMIC COLLECTIVE PRIORITY
RUCNDT/USMISSION USUN NEW YORK PRIORITY 1128
RUEAIIA/CIA WASHDC
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 03 JAKARTA 001840

SENSITIVE
SIPDIS

DEPT FOR EAP, EAP/MTS, EAP/MLS, EAP/PD, EAP/RSP
S/P (GREG BEHRMAN)
NSC FOR J.BADER

E.O. 12958: N/A
TAGS: PREL SOCI KISL EAID ID XF

SUBJECT: INDONESIA -- REALIZING THE PRESIDENT'S CAIRO VISION

REF: A. STATE 71325
B. JAKARTA 1194
C. JAKARTA 1193
D. JAKARTA 1262
E. JAKARTA 1269
F. JAKARTA 1832

1. (U) This message is Sensitive but Unclassified. It contains
Action Requests in paras 4, 6, 8, 9, 11 and 12.

2. (SBU) SUMMARY: We have an opportunity to enhance relations with
Indonesia and carry out the President's vision of a "New Beginning"
with the Muslim world. President Yudhoyono's administration is
committed to advancing our Partnership with Indonesia--the Muslim
world's largest democracy. We have already seen success in many key
areas such as education, economic development, science and
technology, health and interfaith dialogue, but more needs to be
done. President Obama will meet with Yudhoyono at the upcoming APEC
meetings in Singapore. This would be an ideal time to pledge our
commitment to completing initiatives such as the Science and
Technology agreement, announcing the return of Peace Corps to
Indonesia and pledging our commitment to an interfaith dialogue with
Indonesia. END SUMMARY.

THE CAIRO INITIATIVE IN INDONESIA

3. (SBU) The President outlined his vision for a "New Beginning"
with the Muslim world in his speech in Cairo in June. Mission is
engaged in carrying out this vision through many of its key
components of the Comprehensive Partnership with Indonesia
including:

-- Working to conclude a Science and Technology Agreement
-- Supporting Technological Innovation
-- Initiatives in Education
-- Working to return Peace Corps to Indonesia
-- Public Diplomacy Outreach - Creating an "American Place"
-- Health Partnerships
-- Interfaith Dialogue
-- Entrepreneurship

SCIENCE AND TECHNOLOGY AGREEMENT

4. (SBU) In his June Cairo Speech President Obama underscored the
importance of scientific linkages with the Muslim world. The USG
and GOI are in the process of negotiating a Science and Technology
Agreement that would unlock a broad range of more formal and stable
science cooperation. In the most recent round of face-to-face
negotiations in September, negotiators identified two remaining
areas of contention, language regarding a material transfer
agreement (MTA) and language regarding the protection of Genetic
Resources, Traditional Knowledge and Folklore (GRTKF). We have
advocated that the MTA language should be deferred to implementing
agreements. After an October visit to the U.S. on a DOS Voluntary
Visitor program, the main proponent of Indonesia's MTA position has
come around to the U.S. view. We have informed DEPLU and other
stakeholders that the USG cannot agree to any explicit reference to
GRTKF, and this appears to be the final surmountable roadblock to a
joint agreement for final C-175 approval.

ACTION REQUEST: Mission requests that Washington commit to a firm
date to continue with the next round of negotiations on the Science
and Technology Agreement.

SUPPORTING TECHNOLOGICAL INNOVATION

5. (SBU) The President also announced that the U.S. would create a
new fund to support technological innovation in Muslim-majority
countries. In response, the Overseas Private Investment Corporation
(OPIC) is launching a Global Technology and Innovation Fund to
deliver on that commitment. We are negotiating an update to OPIC's
Investment Incentive Agreement with Indonesia. Unfortunately, the
GOI's most recent counter draft would render Indonesia ineligible to
receive the benefits from this newly created OPIC fund. We are
encouraging the GOI to update its Investment agreement in a way that
permits Indonesia to benefit from all of OPIC's private financing,
insurance and investment fund opportunities. Upon completion of an
updated agreement, we will recommend that OPIC choose Indonesia as
host of OPIC's 2011 international investment conference.

EDUCATION

6. (SBU) Mission continues its efforts to strengthen higher

JAKARTA 00001840 002 OF 003


education cooperation and actively market U.S. higher education in
Indonesia. Education USA has received an infusion of one-time funds
which have been used to hire additional educational advising staff
and contract with a professional marketing company. A new marketing
campaign and revamped website will soon be launched by the
Ambassador. The new advising staff will greatly increase
recruitment through outreach events in schools, malls, and other
locations where we can reach students able to pay for a U.S.
education.

ACTION REQUEST: We would request that this funding be continued in
out-years to permit a long-term, sustained effort. Mission's
overall higher education efforts could benefit from increased
funding.

7. (SBU) Additional efforts by the Department of Commerce's Foreign
Commercial Service (FCS) entail leveraging partnerships with
Indonesian recruiters to encourage them to focus more on U.S. higher
education institutions. Using DOC funds, FCS will market U.S.
institutions to the Indonesian public via relationships established
by a Department of Commerce Education Team, which counts many U.S.
universities as its clients. FCS will also use webinars and DVCs to
hold "virtual" college fairs between Indonesian agents, students,
and parents, and U.S. universities.

PEACE CORPS INITIATIVE

8. (SBU) Peace Corps is near completion on negotiations to
establish a program in Indonesia after a forty-year absence.
However, the GOI is reluctant to offer unconditional Administrative
and Technical (A&T) status (albeit without immunities) to Peace
Corps staff. GOI officials insist that Peace Corps' offices should
be integrated within the Embassy and complain that the United States
does not grant reciprocal status to equivalent Indonesian entities.
The Ambassador has advised the GOI that application of the
collocation standard by the GOI endangers prospects for completing
an agreement and would have an adverse impact on overall bilateral
cooperation. (reftel F) Additional remaining issues include visa
fee offsets and definition of the term "family members." The next
round of discussions is scheduled for November 9 in Jakarta. The
first tranche of Volunteers, expected to be on the ground by the
spring of 2010, would include twelve education specialists.

ACTION REQUEST: Mission requests guidance on whether Peace Corps
accepts the GOI's offer of including a housing reimbursement
provision in the implementing agreement (not the MOU) to offset visa
fees. Assuming accommodation on the remaining issues can be reached
on November 9, we also request that the Department respond as
quickly as possible to inquiries from Peace Corps to ensure
finalization of the agreement in time for it to be announced by
President Obama and President Yudhoyono at the bilateral meeting in
Singapore.

PUBLIC DIPLOMACY OUTREACH

9. (SBU) In response to a request from Under Secretary McHale,
Embassy Jakarta developed the concept of an American Place, a
high-tech 21st century public diplomacy outreach venue targeting
Indonesians aged 18-30. This center will present a tangible,
hands-on way to realize the President's Cairo vision in Indonesia.
American Place will advance our education goals by providing a venue
for young people to learn about the United States and get
information about educational exchange opportunities. Social media
savvy Indonesians will enjoy American Place's IT infrastructure,
allowing them to connect with young Americans. Through
public-private partnerships, American companies and organizations
will help tell America's story by showcasing American technology,
ideas, products, and ideals. By engaging young people on issues
that are of interest to them, American Place will offer a venue to
exchange ideas and promote a dialogue in the world's most populous
Muslim nation.

ACTION REQUEST: Mission has already requested $4.9 million to cover
the design, construction, staffing, and first year of operations of
the American Place, and $570,000 to cover the first year's rent at
the commercial mall venue. Mission requests that Washington fund
this project in early December 2009, so that American Place can open
by April 2010.

HEALTH PARTNERSHIPS

10. (SBU) The President announced in his Cairo speech a new global
effort with the Organization of the Islamic Conference to eradicate

JAKARTA 00001840 003 OF 003


polio and to expand partnerships with Muslim communities to promote
child and maternal health. To that end, Mission will continue to
support the development of Indonesia's own capacity to combat the
outbreak and spread of emerging diseases, including through
partnerships to enhance locally-conducted joint laboratory and field
research. Mission continues to engage in productive discussions
with the Ministry of Health (MOH) on the creation of the
Indonesia-United States Center for Biomedical and Public Health
Research (IUC).

11. (SBU) We partner with the GOI and local communities to address
the high rates of maternal and child mortality, particularly among
the poor and underserved through a comprehensive public health and
clinical service approach. The Mission has committed to support the
final stages of global polio eradication through surveillance and
prevention until the region achieves certified polio free status.
An integrated Maternal and Child Health/malaria prevention program
in eastern Indonesia leverages limited resources to maximize impact
on Maternal and Newborn Health by preventing and treating malaria in
pregnant women.

RESOURCE REQUEST: With maternal and child health receiving
attention, additional resources would allow us to expand efforts and
partner with a wider range of stakeholders (including faith-based
organizations and public/private partnerships) in addressing high
maternal and neonatal mortality rates, particularly in vulnerable
communities. Additional attention would support partnership efforts
towards achieving the Millennium Development Goals for health.

INTERFAITH DIALOGUE

12. (SBU) In Morocco, the Secretary reiterated the President's
commitment to interfaith dialogue by partnering with Muslim-majority
host countries to bring together leaders across faith communities,
government, civil society, and the private sector to create
actionable plans for addressing common challenges affecting all of
our communities. To that end, discussions continue between Mission
and the GOI to develop a bilateral interfaith dialogue focusing on
building communities through interfaith work as a component of the
Comprehensive Partnership. This dialogue is tentatively planned for
January 2010.

ACTION REQUEST: Mission requests assistance in the formation of an
advisory group. We would recommend the advisory group consist of
representatives from Religions for Peace (a NGO), or The Center for
Muslim-Christian Understanding at Georgetown University, and
Department representatives. This group would select individuals who
would comprise the U.S. delegation and provide input on the agenda
for the U.S. - Indonesia interfaith event.

ENTREPRENEURSHIP

13. (SBU) The President also announced in Cairo plans for a Summit
on Entrepreneurship to identify how we can deepen ties between
business leaders, foundations and social entrepreneurs in the U.S.
and Muslim-majority countries. Indonesia is an emerging economic
power with a growing entrepreneurial class. Endeavor, a New
York-based NGO that specializes in promoting entrepreneurship in
developing economies, is considering Indonesia for its first
capacity-building program in Asia. Developing more links between
Indonesian and U.S. entrepreneurs would help develop U.S. commercial
and investment ties with the largest, and economically one of the
fastest growing, Muslim-majority countries in the world.
HUME

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