US embassy cable - 04JAKARTA10342

C O N F I D E N T I A L  JAKARTA 010342 
 
 
E.O. 12958: DECL: 10/21/2014 
TAGS: PGOV, PREL, ECON, PINS, PTER, ID 
SUBJECT: AMBASSADOR'S FAREWELL CALL ON PRESIDENT YUDHOYONO 
 
REF: A. JAKARTA 10310 
     B. JAKARTA 10281 
     C. JAKARTA 9800 
     D. JAKARTA 9750 
 
Classified By: Ambassador Ralph L. Boyce, reason 1.5 (b) and (d). 
 
Summary 
------- 
 
1. (C) The Ambassador paid a farewell call on President 
Yudhoyono Oct. 21.  Yudhoyono painted a broad picture of 
needing to convince the Indonesian people on the importance 
of international cooperation and friendship as well as 
showing foreign friends that Indonesia is on the right 
path.  SBY said he sought cabinet members who would 
implement his overall goals, but conceded that his choices 
reflect concessions to his political partners.  He will lay 
out his policy goals at a Oct. 22 cabinet meeting.  On the 
Newmont case, SBY said he would meet with the Police Chief 
Oct. 22, emphasizing that neither the Ministry of 
Environment nor the WHO have detected the alleged 
pollution.  He would look into the Exxon-Mobil investment 
proposal in Cepu.  Negotiations with GAM leaders in Aceh 
have started and SBY is prepared to make concessions.  He 
views GAM leaders in Sweden as more obstructionist and may 
ask us for assistance in the future in speaking to the 
Swedes.  The GOI would watch Abu Jibril after he is 
released.  He reiterated his desire to meet President Bush 
in Santiago, and asked that we facilitate a congratulatory 
call to the U.S. election winner.  He agreed to facilitate 
early receipt of credentials for incoming Ambassador 
Pascoe.  End Summary. 
 
2. (C) The Ambassador paid a farewell call on President 
Susilo Bambang Yudhoyono (SBY) October 21 at the Istana 
Palace.  Already signaling change, SBY held the meeting in 
a newly restored building that once held President 
Sukarno's Office.  The principle structure on the palace 
compound will now only be used for ceremonial events. 
Unlike former President Megawati, SBY was accompanied by a 
notetaker, Dino Djalal, currently Director for North and 
Cental American Affairs in the MFA, but who will clearly 
receive a position close to the new President.  After 
opening pleasantries, a serene SBY touched on some of his 
priorities. 
 
The Overall Challenge 
--------------------- 
 
3. (C) Characterizing himself as someone who has learned 
much in the last few years, SBY described the ongoing 
transition in Indonesia as one of continuing to pursue 
ambitious reforms combined with the need to confront 
transnational issues such as terrorism.  Communicating this 
historic dynamic both within the government and to the 
people will be important.  Indonesia needs to recognize 
more fully that international friendship is needed, and 
that in an era of globalization, international cooperation 
is part of the solution to national problems.  The 
Indonesian people need to be convinced of this as well. 
Simultaneously, Indonesia's foreign friends will have to 
see that the country is in fact making correct policy 
choices. 
 
Choosing the Cabinet 
-------------------- 
 
4. (C) SBY said he approached his cabinet choices, sworn in 
earlier that day (septel), with specific criteria in mind. 
He interviewed them individually and laid out for each of 
them SBY's view of Indonesia's development over the next 
five years.  "Frankly," SBY said, he made concessions and 
compromises as parties in coalition with his own Democratic 
Party put forward candidates.  He described half the new 
cabinet as non-political people whom he chose freely. 
 
5. (C) At the first Cabinet meeting to be held on Oct. 22, 
SBY said that he will establish the roadmap for the new 
government and lay down the rules of the game for all the 
ministers.  He will want all of them on board with his 
leadership and said they will journey together based on 
common views.  While he made concessions in his choices, 
SBY said he would not allow anyone to highjack his freedom, 
and that he made his own decisions.  He will appoint a new 
military commander and police chief at a later stage. 
 
6. (C) He acknowledged that the strength of his popular 
mandate would help him deal with "conflicts of interest" 
and would help him move his policies and strategies 
forward.  Smiling at a comment by the Ambassador expressing 
surprise that the People's Consultative Assembly (MPR) did 
not permit SBY to speak at the swearing in ceremony (ref. 
A), SBY replied that he had a very good conversation with 
MPR Chairman Hidayat Nur Wahid encouraging him to be open 
to establishing new traditions. 
 
Encouraging Foreign Investors 
----------------------------- 
 
7. (C) The Ambassador reaffirmed our hope that SBY would 
find a means to provide a positive signal to international 
investors.  He cited the proposed Exxon-Mobil investment of 
2.3 billion dollars at Cepu as an example of a job-creating 
project that could move forward quickly.  He also cited the 
problems that Newmont is having with pollution 
allegations.  SBY responded that he would call in the Chief 
of Police Oct. 22 to discuss Newmont, noting in particular 
that neither the Ministry of Environment nor the WHO had 
found the alleged levels of pollution.  He wants the police 
to have a "complete picture" of the situation.  Previous 
objections by former Minister of National Development 
Planning Kwik to the Exxon-Mobil project may have been tied 
to irrelevant nationalistic feelings, SBY suggested.  He 
promised to follow-up. 
 
Aceh Discussions have Started 
----------------------------- 
 
8. (C) Communications with the GAM are under way.  SBY has 
dispatched a small team to hold conversations with Muzakir 
Manaf, Commander of GAM forces in Aceh.  SBY suggested that 
a solution could possibly be found within three months.  He 
would make economic, social and political concessions and 
that maybe amnesty would be granted to those who chose to 
voluntarily rejoin "their brothers."  In response to the 
Ambassador's comments that GAM leaders in Indonesia seem 
more flexible than those based in Stockholm, SBY agreed, 
saying that the discussions are with leaders on the 
ground.  Acknowledging the offer for the U.S. to be helpful 
in the process, SBY said that at some point he may ask the 
U.S. to talk to the Swedish government about helping to 
"disconnect" the GAM leadership in Stockholm. 
 
Abu Jibril 
---------- 
 
9. (C) The Ambassador asked SBY to ensure that JI recruiter 
Abu Jibril, scheduled to be released from prison Oct. 27 
(ref. B), be closely watched by the security authorities. 
SBY responded that he would so ensure.  He added that he is 
looking into creating a task force responsible for 
monitoring dangerous individuals such as Jibril.  He said 
the idea is on his agenda to raise with the police chief 
the next day. 
 
Hopes to Meet POTUS in Santiago/Congratulate U.S. Election 
Winner 
--------------------------------------------- ------------ 
 
10. (C) SBY asked for assistance insuring that he could 
meet with President Bush at the APEC Summit in Santiago. 
He asked that we facilitate a congratulatory call to the 
winner of the U.S. Presidential elections, something he 
described as important since he had been congratulated 
after his own victory.  He expressed full understanding 
that we could not send a delegation to his inauguration at 
the last minute.  SBY mentioned he has had good 
conversations with the Thai and Malaysian Prime Ministers. 
Other ASEAN nations want Indonesia to be more active in the 
organization.  Apart from the APEC and ASEAN summits, he 
will not travel outside of Indonesia during the first 
hundred days.  Expectations from the Indonesian people are 
very high in the first 100 days, unrealistically so. 
Laughing, SBY said some think that he is a "superman." 
 
New Ambassador's Credentials 
---------------------------- 
 
11. (C) In closing, SBY agreed to facilitate an early 
presentation of credentials after Ambassador Pascoe arrives 
in country. 
 
Comment 
------- 
 
12. (C) As in previous meeting, SBY had Dino Djalal phone 
in advance to preview the Ambassador's agenda.  Arriving 
from another location, SBY had a short briefing before the 
Ambassador was led in.  He will certainly be more scripted 
than his predecessor and be able, at least on paper, have 
staff follow through more effectively on his commitments. 
Events over the last 24 hours (see septel on choosing the 
cabinet) suggest that his natural inclination to 
consultation and caution will brake his stated aim to bring 
about important change.  As he noted himself, expectations 
are very high.  While he is certainly the most qualified 
Indonesian president, he will have to establish that he is 
truly a leader.  End comment 
 
BOYCE