Reference ID: 07JAKARTA3000    

Created: 2007-10-26 08:35    

Released: 2011-08-30 01:44      

Classification:  UNCLASSIFIED//FOR OFFICIAL USE ONLY   

 Origin: Embassy Jakarta

              


VZCZCXYZ0001

PP RUEHWEB


DE RUEHJA #3000 2990835

ZNR UUUUU ZZH

P 260835Z OCT 07

FM AMEMBASSY JAKARTA

TO SECSTATE WASHDC PRIORITY 6818


UNCLAS JAKARTA 003000

 

SIPDIS

 

SENSITIVE

SIPDIS

 

DEPT PASS TO USTR SUSAN SCHWAB FROM AMBASSADOR HUME

DEPT FOR EAP/MTS

 

E.O. 12958: N/A

TAGS: OVIP ETRD SENV EAID ID

SUBJECT: LETTER FROM AMBASSADOR HUME TO USTR SCHWAB

 

 

¶1. (SBU) I wanted to thank you for agreeing to attend the Trade

Ministers dialogue attached to the 13th Conference of Parties of the

United Nations Framework of Convention on Climate Change (UNFCCC) in

Bali, Indonesia on December 8th and 9th.  I want you to know we will

do everything we can to make sure your visit is a success.  USTR's

anti-illegal logging MOU with Indonesia is part of our forest

conservation package for the conference.

 

¶2. (SBU) I understand that your preliminary travel plans have you

flying directly into Bali. If that is the case, we recommend a

meeting for you with Minister of Trade Mari Pangestu where you could

discuss bilateral trade issues -- including Indonesia's concerns on

negotiating a Bilateral Investment Treaty (BIT); how progress on

intellectual property rights directly affects foreign direct

investment; and desired outcomes from our Trade and Investment

Framework Agreement (TIFA) dialogue.  You could also discuss

multilateral issues such as the WTO Doha Round and the U.S.-ASEAN

TIFA.

 

¶3. (SBU) I recommend additional meetings in Jakarta if possible.  A

number of high-profile investment disputes involving U.S. companies

are harming the investment climate and deterring foreign investment.

 Prominent U.S. companies -- including Intel, Times Inc, Mars, Nike,

Microsoft and others -- have expressed concerns about the pace and

progress of investment climate reforms.  Continuing issues with rule

of law and corruption coupled with Indonesia's new "negative list"

of closed sectors aggravate these concerns.  Chairman Muhammed Lutfi

and his staff at the Investment Coordinating Board (BKPM) have been

proactive in working with us to address investor issues.  I think it

would be useful for you to meet with Lutfi to discuss ways in which

Indonesia can continue to improve the investment climate.  Meeting

with Lutfi would also present an opportunity to press for

negotiating a new OPIC agreement with Indonesia.  In addition, I

recommend meeting with the Ministry of Agriculture to address

Indonesia's continued refusal to allow importation of U.S. beef.

 

¶4. (SBU) I would also suggest speaking with members of Indonesia's

Chamber of Commerce (KADIN).  KADIN is comprised of a dynamic group

of Indonesian businesspeople and entrepreneurs, and is growing more

forceful and influential in its role in promoting economic reform. I

see KADIN as a valuable ally in strengthening our trade and

investment ties with Indonesia.  Meeting with KADIN's members would

send a strong signal of support of their efforts to promote reform.

 

 

¶5.  (SBU)   Thank you again for your upcoming visit.  I look forward

to welcoming you to Indonesia.

 

HUME