The U.S. and Indonesia: Toward a strategic partnership

The U.S. and Indonesia: Toward a strategic partnership
JP/7/USINDO

Part 1 of 2

The U.S. and Indonesia: Toward a strategic partnership

Eric G. John
Washington D.C.

My main subject is our developing strategic partnership with
Indonesia. But let me start by talking a bit about the U.S. and
Asia more generally to put our relationship with Indonesia in
context. As you know, President Bush and Secretary Rice just went
to the Asia Pacific Economic Cooperation (APEC) meetings in Korea
in November.

Substantively, APEC is valuable for U.S. interests in Asia. We
recognize the importance of APEC as the source of half the
world's trade and over half of its GDP.

In Korea the Secretary said that the APEC meetings were
important because Asia is an extremely vibrant and important
region, and both the economic statistics for the region and its
vibrancy and growth (are) just extraordinary. When you compare it
to any other region in the world, it's the most dynamic region.

She also alluded to the importance of democratic progress in
Asia: "This all takes place in the context of a region where the
number of democracies has grown dramatically over the last couple
of decades".

Let me descend from the thirty-thousand foot level over all of
Asia to perhaps ten-thousand feet, looking at ASEAN. The
President greatly valued his meeting with the seven ASEAN leaders
attending APEC, and in particular he enjoyed the free flow of
discussion. As National Security Adviser Stephen Hadley said
after the meeting, "The President made clear to those in the
meeting that the United States remained engaged, and would remain
engaged, in Southeast Asia; that it was an area of strategic
importance to the United States."

The cornerstone of our growing engagement with the region will
be the U.S. -- ASEAN Enhanced Partnership that ASEAN Members and
President Bush announced in November. The key is a comprehensive
Plan of Action that the Secretary of State and the ASEAN foreign
ministers are developing together. It will go beyond a trade
focus to enhance all areas of our relationship, including
political, economic, social, development and security
cooperation. In short, we're moving toward a new, deeper phase in
our relations with ASEAN.

ASEAN's changing trade patterns imply that the U.S. must work
to stay engaged in the region economically. For instance, U.S.
trade turnover with ASEAN reached US$135 billion per year in 2000
and then declined. It only recovered to that level in 2004.
During that same period, ASEAN's trade with China has increased
from about $40 billion per year to about $100 billion per year.

We are advancing our bilateral economic relations with ASEAN.
We have recently concluded a Free Trade Agreement with Singapore,
are negotiating an FTA with Thailand, and are working with
Vietnam in its efforts to join the WTO.

Regarding Myanmar, we want ASEAN's and Indonesia's help in
ending what Secretary Rice has called "the appalling human rights
situation" and the "systematic efforts to silence any critics of
the regime." We are very encouraged by the recent statements of
ASEAN leaders calling on the regime to release Aung San Suu Kyi
and expedite the democratization process. We also support the
ASEAN plan for the Malaysian Foreign Minister to visit Myanmar
early next year to press the regime further. The firmer approach
by ASEAN, coupled with the unprecedented Security Council
briefing on Myanmar, is sending an increasingly clear message to
the regime that the international community will no longer
tolerate the status quo there. We still believe that maximum
international pressure on the regime to reform is the best
policy.

As you know, President Bush also met Indonesian President
Susilo Bambang Yudhoyono on the margins of APEC. President Bush
offered his praise for the job that President Susilo has done and
conveyed his support for "building democracy and fighting terror
and strengthening the economy in Indonesia."

It was the fourth meeting since Susilo took office fourteen
months ago, one of which was the UN General Assembly luncheon in
September when the two presidents sat next to each other for a
two-hour discussion. Speaking in New York after the lunch,
President Susilo commented, "We both see eye to eye on things,
and I think I speak for the both of us in saying that we are both
committed to strengthen our relations." The two Presidents
clearly value their relationship, and President Susilo was
absolutely correct about our joint commitment to strengthen U.S.
-- Indonesian relations.

Strategic partnership with Indonesia

With the close relationship between our two presidents in
mind, let me give you a ground-level look at our relationship
with Indonesia.

A strategic partnership is in both our interests.

A broader, deeper partnership with Indonesia is in the United
States interest because of significant changes both in Indonesia
and in the U.S. worldview.

Changes in Indonesia

Our view of Indonesia has changed because Indonesia has
changed. In the tumultuous period after Soeharto's resignation in
1998, we looked at Indonesia and primarily saw problems: Economic
collapse, a violent exit from East Timor, uncertain prospects for
democracy after four decades of authoritarian rule, and growing
internal conflict in places like Ambon, Sulawesi and Aceh.
Against the odds, Indonesia rebounded in this short period of
seven years.

Indonesia made significant amendments to its constitution,
balancing the powers of government and reforming the electoral
system. It emerged as the world's third largest democracy. The
military and police no longer have formal political roles.
Indonesia and East Timor, while still dealing with
accountability, have settled on a path of cooperation and
friendship. Civil society and press freedom have blossomed.
Decentralization has pushed governance closer to the people.

We continue to be impressed by the substantial democratic
transition underway in Indonesia. There is lively political
debate; a campaign to fight corruption, including closer
examination of those in leadership positions; a free and active
press; and a thriving civil society. When the Indonesian
Government recently proposed using the territorial command
structure as a means of fighting terrorism, civil society groups
and political leaders initiated a debate that exemplifies the
type of constructive discussion democracies encourage and
protect.

Another area of remarkable progress is Aceh, where the
Government of Indonesia -- including the Armed Forces -- and Free
Aceh Movement (GAM) have worked constructively to resolve a
decades-old conflict under the framework of their landmark peace
agreement signed on August 15th. We applaud former Finnish
president Marti Ahtisaari's leadership in concluding that peace
agreement, and we appreciate the helpful role that the joint EU-
ASEAN Aceh Monitoring Mission is playing in the process of troop
withdrawal and weapons handover. A key step in 2006 will be a new
Law on Governing Aceh, which would permit local political
parties, such as a party from the GAM, to participate in Aceh
elections.

Changes in the U.S. worldview

Let me turn to changes in the U.S. The Indonesian democratic
transition, by itself, would have been enough to merit a review
and reassessment of our policy toward Indonesia, but changes in
the U.S. worldview post Sept. 11, and the fact that we have both
been targeted by extremist Islamic terrorists have led us to
increasingly recognize Indonesia's strategic importance to the
United States and the need to work together to overcome difficult
challenges. Indonesia has had to endure three devastating
terrorist attacks in the last three years, and it goes without
saying that our security cooperation is critical.

On counterterrorism, our cooperation is excellent: many of you
likely saw a recent New York Times piece about U.S.-trained
Indonesian police Detachment 88 and its successful takedown of
top terror suspect Azahari. In addition to fighting terror
incidents on land, we also recognize Indonesias importance as
guarantor of security in the Malacca Strait, through which one
third of world trade shipped by sea and half of all oil shipments
pass. But let me be clear that the U.S.-Indonesian relationship
is about much more than counterterrorist and security
cooperation.

Our interest in Indonesia succeeding is also based on the fact
that Indonesia is the world's most populous majority-Muslim
country, known for its moderate Islamic outlook and commitment to
inter-religious tolerance. Recent disturbing incidents such as
the beheadings in Poso and church closures are clear attempts to
upset the long tradition of religious tolerance in Indonesia. We
are confident that such violence will fail to achieve its goal,
and commend Susilo's commitment to promote interfaith dialogue.

How are we developing the partnership?

We are moving to a new stage with Indonesia, concentrating not
on what we can't do together, but on what we can.

Eric John is Deputy Assistant Secretary of State in the Bureau
of East Asian and Pacific Affairs. The article is an excerpt from
his policy speech delivered during a recent UNSINDO event in
Washington D.C.