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

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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.