State's Zoellick Cites Indonesia as "Democratic Partner"
Notes "strong commitment" to anti-terrorism, economic partnerships



Improvements in Indonesia's capacity to deal with terrorism will help
that nation tighten its security and will improve the investment
climate there, U.S. Deputy Secretary of State Robert Zoellick says.

Zoellick made his remarks during a press conference May 7 in Jakarta,
Indonesia, his fourth stop on a trip to Southeast Asia that will
conclude May 11.

His discussions in Indonesia covered a range of economic, political
and security issues, with a focus on reconstruction assistance to the
region following the December 2004 tsunami. President Bush's request
for $900 million in tsunami reconstruction aid to the region is
nearing final approval in the U.S. Congress.

As post-tsunami aid shifts from humanitarian assistance to
reconstruction, Zoellick said, donor nations are focusing on how the
aid is distributed.

Some of the aid the United States will be sending "will be to help
deal with an anti-corruption accord" and inspectors general in some of
the ministries, he said. "So I think this is part of an overall
package and program, and I certainly had the sense that the Indonesian
government is highly sensitive to the fact that the eyes of the world
will be on it and the money needs to be well spent."

Zoellick said Indonesia has taken "some strong steps" in dealing with
terrorism and that the United States is ready to help strengthen
"legal and judicial and prosecutorial reform efforts" in this process.

"We talked about that in terms of the security of Indonesia, but we
also talked about it in terms of the economics of Indonesia because we
talked about investment climate and dealing with the overall security
situation," he said of his meetings with President Susilo Bambang
Yudhyodono and other officials.

The United States has also been urging Indonesia to identify and bring
to justice the perpetrators of the August 2002 ambush murders of two
U.S. citizen teachers in Timika in the Papua province.

Citing Indonesia's recent balloting, which resulted in that nation's
first directly-elected president, the deputy secretary said the United
States sees Indonesia "as a democratic partner, as a country that we
can work with on counterterrorism issues, that we have economic
partnerships in terms of dealing with reconstruction" and that the
United States can work with through such entities as the Association
of Southeast Asian Nations (ASEAN) and the Asia-Pacific Economic
Cooperation (APEC) forum.

Following is the State Department transcript:

Press Conference in Indonesia
Robert Zoellick, Deputy Secretary
Dharmawangsa Hotel
Jakarta, Indonesia

May 7, 2005

DEPUTY SECRETARY ZOELLICK: Well thank you all for coming. I am Bob
Zoellick, the Deputy Secretary of State and this is the fourth country
that I've visited on a trip throughout Southeast Asia. I've been to
Thailand, the Philippines, and Vietnam over the past few days. Today
in Jakarta, tomorrow in Aceh, and then I'll be going on to Malaysia
and Singapore. The general purpose of the trip has been that as
President Bush starts his second term, Secretary Rice and I wanted to
make sure I had a chance to come out to visit our partners in this
region and discuss with them some of their ideas of where we stand on
a host of economic, political and security issues. See how we might
work together during the President's second term.

In Indonesia, much of the focus has been on the pivot from
humanitarian aid to reconstruction assistance. The president made a
request of Congress that has now been through the conference
committees, still has to get, return the final passage to the Senate
of about $900 million of post-tsunami assistance for the various
countries that were hit by the tsunami and, in the case of Indonesia,
also a follow-up earthquake.

Today I had an opportunity... President Yudhyodono was very generous
with his time today. We had a good long conversation. This is in
advance of his visit to the United States on May 25th. Then I had a
meeting with the Coordinating Minister for Political, Legal, and
Security Affairs, Widodo, and I just finished a meeting with the
Planning and Development Minister Sri Mulyani, and then we signed the
agreement that most of you witnessed. I will then, this evening, have
a chance to meet with the Coordinating Minister for Economics Bakrie,
as well the Minister of Energy, Minister Mulyani, I believe will be
there again, and then some representatives from the Finance Ministry
and Trade Ministries. I also this morning started out with a very
interesting roundtable at the Center for Strategic and International
Studies, which gave me a chance to get a view of some of the regional
issues that some of the scholars at the institute were highlighting
for me. And, our Ambassador put together an interesting lunch session
with some of the organizations and countries that have been part of
the tsunami donor effort. So the representative of the World Bank, the
Asian Development Bank, UNDP, Ambassadors from Australia, the
Netherlands, and Japan.

Tomorrow I will travel to Aceh where I'll meet the acting governor of
Aceh as well as Minister Kuntoro, the new head of the Reconstruction
Agency and then I am going to visit Lamteungoh-Lamtutui, a small
village where we'll look at some of the small infrastructure projects
that we're supporting as well as a community center in terms of some
of the political support there, trying to make sure that the people of
Aceh are involved with the overall project. And then I will visit Lhok
Nga where we will be witnessing the effort that the U.S. government
will be making as the start of rebuilding the Banda Aceh-Meulaboh
road, which is some 250 kilometers with about 117 bridges and an
estimate from the U.S. Army Corps of Engineers of about $240 million
of reconstruction. Also during my meetings, I had a chance to talk
with the President and Minister Sri Mulyani about general economic
reform efforts. And then we also covered a number of security issues:
counter-terrorism, defense reform, the follow-up on the Timika
murders. I had a chance to meet with our FBI Legal Attach� who has
come out here working with the embassy on the investigation and I had
a chance to thank President Yudhoyono for a very generous and warm
letter that he sent to the widow of one of the people who was killed
in that attack. And we talked about some of the follow-up of the
investigation. We also talked about other human rights issues, the
Aceh peace process, and also some of the regional issues involved with
ASEAN and East Asia.

I will return to Washington late on May 11, but there's a nice sort of
bookend in that May 12 is the day that there's a large conference in
Washington about private sector donor assistance in the post-tsunami
environment. This is put together by the Asia Society and the Asia
Foundation. Minister Sri Mulyani will be there again. President Bush
41, the current president's father, as well as President Clinton will
be taking part in it, given the effort that they've made, and
President Clinton will have an on-going effort on behalf of the UN for
private sector assistance. And then in the evening, if I am still
awake at that time, Ambassador Dick Holbrooke will do an interview
with me about the overall trip and some of the post-tsunami.

So, happy to take your questions.

Just stunned you with information.

Yes?

QUESTION: Shawn Donnan from the Financial Times. This is unrelated to
your trip to Indonesia, but obviously very much in the news.
What...North Korea, what are they up to? Is the evidence that you, or
the information that you have at this point, point towards a nuclear
test, or to something else there? And if there was to be a nuclear
test in North Korea what would that mean for the security of the
region and efforts at peace in North Asia?

DEPUTY SECRETARY ZOELLICK: Sorry to disappoint you, but since I've
been absorbed with this trip, other than kind of reading what's in the
newspapers and some of the basic, the cable traffic I get, I really
don't have anything to add from what you've gotten out of a Washington
audience on this.

Yes ma'am.

QUESTION: Amy Chu from New Straits Times. Two questions. With regards
to reconstruction in Aceh is the U.S. looking at some efforts or
checks and balances to ensure that there are no leakages of funds?
It's a huge amount of money going into Aceh, one. And secondly, was
the issue of Hambali discussed, in terms of providing access to
Indonesian anti-terror investigators to Hambali so that they can build
stronger prosecution against terror suspects here? As I am sure you
are aware, the trial of various terrorists like, suspected terrorists
like Abu Bakar Ba'asyir--he only got two years because there were not
enough evidence so was that issue of Hambali discussed? Thank you.

DEPUTY SECRETARY ZOELLICK: The first one was the checks for the
assistance. That came up in all of our conversations, because,
obviously the government and the donor community need to strike a
balance. We need to get money and assistance in quickly. There has
been a tremendous job on the humanitarian side, but now we need to
switch to the reconstruction side. But people obviously want to make
sure that the money is spent transparently and without corruption.
Minister Sri Mulyani explained to me a number of the accounting and
auditing functions that they had in place and, in fact, the Ministry
of Finance has been very restrictive in terms of some of the funding
going out for this very reason. It actually fits with some of the
larger issues that we discussed about how to improve the investment
climate more generally in Indonesia. And I don't know if you were at
the signing ceremony we just had, but some of the funds that the
United States will be devoting will be to help deal with an
anti-corruption accord, deal with inspectors general in some of the
ministries. So I think this is part of an overall package and program,
and I certainly had the sense that the Indonesian government is highly
sensitive to the fact that the eyes of the world will be on it and the
money needs to be well spent. You have a multiplicity of donors here,
which adds to the challenge. You've got money coming in from the
Indonesian government; you have money coming in from various
government and public sector sources, U.S. government, rather large
sums, but others as well. And you also have a large private sector
component, both business and NGO. And some of the NGOs, for example,
really have more of a specialization in terms of humanitarian aid, so
they're needing to work with other partners as they move to their
reconstruction side.

So, a lot of what I was trying to focus on today, was to learn more
about how that coordination is taking place. So, you asked one
dimension of it, which is the accounting and the checks. The other
part is to make sure there's a connectivity here between donors and
projects and purposes, and that's an item I'll be discussing further
with Kuntoro, the new minister in charge of this effort. I also tried
to learn a little bit about how the hand-off is working, and Kuntoro's
new ministry will obviously be seconding people from some of the other
ministries so that they will be able to draw on the current project
plannings. So, what I've been trying to get into here in some detail
and will tomorrow, is what I try to do on visits like this, which is
to go beyond some of the materials that I've read and been given, and
kind of dig in and see how it's really working. And so I try to
triangulate, if you will, from different sources, including some of
the other official embassies and others that were part of this here.

Your second question was, sort of the broader question of, sort of
counterterrorism and the judicial aspects. I did discuss those. I
discussed those with the president. I also discussed those with the
Coordinating Minister for Security, and I think there is a very shared
interest in recognizing that Indonesia has taken some strong steps in
terms of anti-, dealing with terrorists, but obviously I expressed a
concern about the relatively short sentences for some of the
individuals, and so we talked about ways that we might, for example,
support some of the legal and judicial and prosecutorial reform
efforts in this process. To strengthen the overall capability to deal
with antiterrorism. And I came away with a sense of a very strong
commitment of the government to do so. We talked about that in terms
of the security of Indonesia, but we also talked about it in terms of
the economics of Indonesia, because we talked about investment climate
and dealing with the overall security situation. So we covered a
number of the individuals that you mentioned and we covered ways that
we can try to cooperate. The government is looking to create some
additional sort of coordinating mechanisms on these efforts, which
will be up to them to talk about. But I think, in this sense, it
helped sort of advance the discussion that the two presidents will be
having on May 25th.

Yes sir.

QUESTION: Thank you. My name is Hendri from BBC Indonesian section.
Just a short question. I want to ask about the IMET progress. Could
you mind to elaborate about this IMET program progress and did you
discuss with the President Yudhoyono this morning about this program?

DEPUTY SECRETARY ZOELLICK: I discussed it with the Coordinating
Minister. I don't remember for sure. I think we talked more about
defense reform more generally. But obviously, you know, the president
himself is a graduate of the IMET program and is a good example of the
strength of that program in terms of not only building ties between
militaries but working with militaries in democratic societies and the
rule of law. That's one of the issues that I talked about with both
the President and the Coordinating Minister because there's a key
transition here. And I discussed how I was certainly well aware of
TNI's (Indonesian Armed Forces) key role in Indonesian history, its
independence, its role with the state, but also the challenge of the
transformation of TNI and some of the issues of civilian control,
transparency in the budget process, moving it out of the businesses,
which the government has been talking about over the course of recent
weeks. And IMET can obviously be part of that reform process. As you
probably know, the United States has certified some of the action in
the Timika case to take a first step in terms of some very, very
modest IMET funds. And, as I explained to the president and the
Coordinating Minister, for us to do more we need to make additional
progress on that investigation, and we also hope that they can have
the follow-through on some of the human rights issues with East Timor.
And so we would like to expand the efforts but to be able, and I think
that they would be very timely given the efforts of this government
with the reform. But we need to do so in a context of where we deal
with some of these legacies while we also look to the future.

Yes sir.

QUESTION: I believe you're aware that in ASEAN...

DEPUTY SECRETARY ZOELLICK: Your name and...

QUESTION: Oh, my name is Okay from Kompas Daily. I believe you're
aware that ASEAN plus Japan, China, and South Korea are now in process
of establishing East Asia community. How do you see this new bloc
could affect U.S. interests in this region? Thank you.

DEPUTY SECRETARY ZOELLICK: I didn't quite get... the East Asian
community, is that what you're...? Yeah. Well, we discussed this issue
as well, because one of the other points of my discussion was that I
hope and believe ASEAN can play a larger role in the political,
security, economic context of the Asian region, from South Asia to
Northeast Asia. And, frankly, for ASEAN to play that role, it really
requires Indonesia to take its traditional place, in terms of guiding
the ASEAN process. For very understandable reasons, that hasn't really
occurred since 1997 because of the preoccupation and the political
process and change. I found the president and his team very interested
in re-establishing Indonesia's role in the ASEAN context. It's one
that I certainly encouraged and looked for ways that the United States
could be supportive, in the sense that it encapsulates my whole trip.
And, particularly on the question of the East Asian summit, Indonesia
was one of the countries that encouraged an open and inclusive process
of this, which we certainly welcome. From the perspective of the
United States, I think, all the countries in the region sort of
recognize the positive security presence of the U.S. in the region.
And certainly, you know, in the aftermath of the tragedy in Aceh, it
was very clear that the reach and scope of the United States and its
military can be very important in dealing with a whole set of
challenges. And some of the Indonesian interlocutors I had today, I
forget whether they were with the think tank group or others, who were
talking about the role of the aircraft carrier Lincoln and the health
supplies that it had provided and others. So, there's no doubt of the
U.S. presence and role, but then I think it is important that
countries of the region decide whether they want to have an open and
inclusive security system as part of that. As I have said on other
occasions, I think the proper way for the United States to demonstrate
its interests is with an activist policy, not a negative policy
towards others. And this activism is in part humanitarian and
reconstruction; it's in part our security presence. We talked about
issues of maritime security and how we can support the
capacity-building of some of the littoral states and dealing with
issues whether it be piracy or organized crime or others. But, in
other dimensions like free trade, where I was discussing with the
Thais about moving forward our free trade agreement, and with the
economic team here how we can strengthen the ties of trade. So one of
the reasons that I wanted to come to the region was that Secretary
Rice in her first months in office was in South Asia and Northeast
Asia. I worked a lot with this region of the world over some twenty
years and so know a lot of the leaders here. And so I wanted to hear
their thinking about some of these issues and see how we could engage
them constructively.

Yes sir.

QUESTION: Tim Jones, from Voice of America. Admiral Fallon said he's
very optimistic that they will -- or you will -- re-establish full
military-to-military cooperation in the near future.

DEPUTY SECRETARY ZOELLICK: How can you be from "Voice of America", you
sound like you're an Australian.

QUESTION: The voice is kind of contradictory, but I'm trying to get
them to change it, so...

DEPUTY SECRETARY ZOELLICK: We're an open country.

QUESTION: Do you share his optimism, and if you do, do you have a
timetable for that resumption of full military-to-military ties; and
just to follow up on one other question, specifically, did you agree
to give Indonesian investigators access to Hambali, which of course is
one of the demands of the anti-terrorism investigation here?

DEPUTY SECRETARY ZOELLICK: Well on your first question, about the
Admiral's comments. I think we see a direction that's a very positive
one. I outlined in the answer to the other question that we're going
to need to make progress on some of the human rights issues. But I
think that the comments that I heard about the progress of the defense
reform were very encouraging, and we want to try to be supportive of
that. But in more general terms, the United States has very strong
military relations throughout the region. Thailand and the Philippines
are treaty allies. I'll be in Singapore in a couple of days; we've got
a particularly constructive relationship there. So I think part of
what the Admiral and I are both exploring is "What are ASEAN's
security interests?", and how given the history and their own security
issues, how we can be supportive of those from counter-terrorism, to
maritime, to anti-proliferation topics. Now your second question dealt
with...?

QUESTION: Hambali. Access to Hambali. What are the issues of
investigation?

DEPUTY SECRETARY ZOELLICK: We didn't focus on that in our discussion;
we did focus on some of our joint investigation in the Timika case.

Yes, sir.

QUESTION: I am Ibnul, from Tempo Daily. An Indonesian Air Force combat
plane, an F5E, F-Tiger II type was sent to the United States in 1995
for maintenance, and now it's still being held in a storehouse in
California. It costs the Indonesian Government $15,000 per month,
effected by the 1991 embargo policy. Is there any possibility for the
Indonesian Government to move the plane to another storehouse outside
the United States?

DEPUTY SECRETARY ZOELLICK: I'm sorry, I don't know the answer to that
one. Maybe the Embassy can follow up at some point with you. I do know
that-- because I checked into this after I got a different question
before starting the trip--the limitations that we have with Indonesia
relate to foreign military financing, not necessarily sales of spare
parts and other items, so I don't know where this fits into that
process. But my colleagues here can get more details and I urge them
to share it with you.

Any others? Yes sir.

QUESTION: I'm Michael from Waspada Daily in Medan. Secretary Zoellick,
you mentioned about counterterrorism, defense form, human rights and
the Aceh peace process. Yesterday, Admiral Fallon stated that he
foresees the United States and Indonesia, military ties with positive
development in the course of his new command. Now I understand that
Washington lifted the embargo on the United States military weapons
supply to Indonesia. Can you confirm that this has connectivity
towards the United States support towards Aceh reconstruction, and
military enhancement efforts between the United States and Indonesia?

Thank you.

DEPUTY SECRETARY ZOELLICK: It's not connected to Aceh reconstruction.
The question from the Voice of America reporter I tried to answer
about the overall path, but Aceh reconstruction is a separate aid
effort and is not connected to that item. We hope, and this was part
of my discussions, to have good ties across political, economic and
security grounds. One of the other aspects that was a part of our
discussions is that you just had a major election here. You have a
great example of democracy in action in a very important country in
the region and indeed the first directly elected Indonesian President.
So we see Indonesia as a democratic partner, as a country that we can
work with on counterterrorism issues, that we have economic
partnerships in terms of dealing with reconstruction, but also in the
ASEAN and APEC context. So there's a broad network of ties here, and
the military-to-military ties are perhaps most important in the effort
to try to support the reform process, as well as work jointly on
counterterrorism aspects which affect all of us, including the
Philippines. Right, next question.

DEPUTY SPOKESMAN ERELI: Last question.

DEPUTY SECRETARY ZOELLICK: There were two people that had two hands
up, we'll try to deal with the two. This woman and that...

QUESTION: This is related to the resumption of military ties again. I
just want to get your-I'm sorry, my name is Dewi from the Straits
Times, Singapore. I just want to get your take on your assessment on
the Timika case investigation, are you actually happy about that? I
mean, what is your view on the ongoing progress?

DEPUTY SECRETARY ZOELLICK: Well, I won't be happy until the
perpetrators are brought to justice. But I certainly had a strong
sense from the visit today that the Indonesian government shares our
interest. We've had some good cooperation and sharing of evidence
dealing with the ballistics of the rifles, there is some evidence that
was gained in Indonesia, some evidence that our prior investigators
had at Quantico, that's been shared in recent times. One of the
reasons that we now have a full-time person here from the FBI is to
try to support the investigation, and he briefed me about his
discussions with the police and as I mentioned, the President's
commitment and the letter that he sent. And the Coordinating Minister
was also very strong about the commitment to try to have the
follow-through on this. One of the issues that was discussed, which I
had not known about before was the efforts to also work with the Papua
New Guinea Government, because this is obviously a long border, and
one that is not easy to catch people in. And so if people are
coordinated on both sides of the border, we have a better chance of
catching the perpetrator or perpetrators.

Yes?

QUESTION: My name is Nurul, from Investor. I would like to ask about
the plan of free trade area between Indonesia and the U.S.

DEPUTY SECRETARY ZOELLICK: I'm sorry, I didn't quite catch it, the
free trade agreement?

QUESTION: Free trade agreement.

DEPUTY SECRETARY ZOELLICK: Between Indonesia and the United States?
We're not really at that stage in the process. I didn't get a chance
to meet the Trade Minister because I believe she's out of the country
today. She and I had worked together when I was in my prior post. But
what the United States has presented to the ASEAN countries, something
that President Bush presented a couple of years ago, is a plan called
the "Enterprise for ASEAN" initiative, which tries to customize the
trade relations for the interests and development of the different
countries. So for example, yesterday I was in Vietnam, and they were
working on the WTO accession, getting them into the World Trade
Organization. We'd also got Cambodia in, we still have to get Laos in.
I will be in Singapore in my last stop, where we're seeing some of the
benefits of the Free Trade Agreement, including the intellectual
property provisions drawing a whole new set of investments across a
wide range of knowledge industries. In Thailand, we were focusing on
getting that negotiation moving ahead. Here in Indonesia, the step has
been to have an intermediate process we have, called a "Trade and
Investment Framework Agreement", TIFA, where we have regular meetings
that discuss issues of common concern, whether they be customs issues,
whether they be resolving investment problems, also trying to link in
our business communities into the process. And what we have encouraged
is some studies to be done by think tanks to look at the effects of
free trade agreements. And I know there's one being done by the East
West Institute in Hawaii, dealing with the Philippines. It may also be
dealing with Indonesia, I just don't recall for sure. And that's
important because the way the U.S. does free trade agreements, they're
very comprehensive. When people talk about free trade agreements in
this region, they may often be dealing with just industrial goods, or
industrial goods and a few sectors of agriculture. The United States
does services, goods, agriculture, intellectual property,
anti-corruption, government procurement, environment and labor, so to
be able to undertake such a task, the government also must discuss it
with its public, and that's where these studies are useful. So, to
summarize, I think in the case of Indonesia, we're working on through
the TIFA process, having analytical work done, and then frankly trying
to work on some of the business and investment climate issues that
this agreement that I just signed deal with, so as to create the
context in case Indonesia wishes to go forward, cause this is an
option and a choice, and it's up to countries in the region, and the
U.S. has to decide how many it can manage at once too, because these
are demanding negotiations.

QUESTION: Thank you very much.

DEPUTY SECRETARY ZOELLICK: Thanks.


Created: 08 May 2005 Updated: 09 May 2005



http://usinfo.state.gov/dhr/Archive/2005/May/09-276076.html?chanlid=democracy




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