For Immediate Release
Office of the Press Secretary
September 19, 2001
U.S. and Indonesia Pledge Cooperation
Joint Statement Between the United States of America and the Republic of Indonesia
As leaders of the world's second and third largest democracies, President George W. Bush and President Megawati Soekarnoputri today vowed to open a new era of bilateral cooperation based on shared democratic values and a common interest in promoting regional stability and prosperity. They agreed that a strong bilateral partnership between the two countries will benefit both nations, the region, and the international community. President Bush and President Megawati emphasized the importance of a strong and prosperous ASEAN and pledged to cooperate to promote those objectives.
President Megawati condemned the barbaric
and indiscriminate acts carried out against innocent civilians and
pledged to cooperate with the international community in combatting
terrorism. She underscored that terrorism also increasingly
threatens Indonesia's democracy and national security. The
two Presidents agreed that their respective officials would soon
discuss concrete ways to strengthen bilateral cooperation on
counter-terrorism, in particular on capacity and institution building.
They further affirmed their intention to expand cooperation to combat
other transnational crimes, including piracy, organized crime,
trafficking in persons, narcotics, and smuggling of small arms.
President Bush expressed his conviction
that Indonesia's transition to democracy is one of the most significant
developments of this era. Noting the great importance the
United States attaches to Indonesia's success, he pledged his support
for President Megawati's efforts to build a stable, united, democratic
and prosperous Indonesia. In that context, President Bush
pledged to work with Congress to secure the Administration's request
for at least $130 million in bilateral assistance for Indonesia in
fiscal year 2002, with a special focus on assisting Indonesia's efforts
with legal and judicial reform. Recognizing the priority
President Megawati places on rebuilding communities in conflict zones,
President Bush pledged an additional $10 million to assist internally
displaced persons, with a focus on the Moluccas. He further
pledged $5 million for Aceh, to support reconciliation, help rebuild
schools and other infrastructure destroyed in the ongoing violence, and
assist with economic development projects, including environmental
improvements and transportation. To strengthen Indonesia's
law enforcement capability, President Bush also committed, subject to
Congressional approval, to provide $10 million in police training.
The two Presidents discussed the situation
in the provinces of Aceh and Irian Jaya and agreed on the urgent need
for peaceful resolution of separatist pressures. President
Megawati affirmed her determination to pursue a multidimensional
approach to these regions, including implementation of special
autonomy, resource sharing, respect for cultural identity and human
rights, restoration of peace, order and the rule of law, and continued
efforts at dialogue and reconciliation. President Bush
reiterated the firm support of the United States for Indonesia's
territorial integrity and emphasized that the U.S. does not support
secessionist aspirations in these areas or elsewhere.
President Bush and President Megawati
agreed to work together to support a stable and prosperous independent
East Timor. The Presidents further agreed on the urgent need
to find a comprehensive solution to the remaining problems of East
Timorese in West Timor, East Nusa Tenggara province, notwithstanding
the significant assistance already provided by the United States to
alleviate Indonesia's burden. Recognizing that the plight of
internally displaced persons (IDPs) still in West Timor is both an
Indonesian and an international problem, the two leaders agreed to
cooperate in developing a comprehensive plan that supports and
implements the choice of remaining IDPs to resettle or return to East
Timor. In their discussions, President Bush committed to
provide both technical assistance and seed money in the amount of $2
million dollars to help Indonesia develop and implement a credible
plan, and to assist with the resettlement of those who choose to stay
in Indonesia. The United States and Indonesia further
pledged to work together to seek additional international support, upon
completion of the plan.
The two Presidents agreed that economic
reform and restructuring are pressing challenges now facing
Indonesia. President Bush expressed strong support for
President Megawati's commitment to press ahead with structural economic
reforms, including privatization of banks and the disposal of assets
within the Indonesian Bank Restructuring Agency. President
Megawati underscored her determination to improve Indonesia's
investment climate, in particular by strengthening the rule of law,
resolving outstanding investment disputes, and protecting investors'
assets and property.
As an expression of confidence in both
President Megawati's leadership and the enormous potential of the
Indonesian economy, President Bush announced that the three U.S. trade
finance agencies -- the Export Import Bank (ExIm), the Overseas Private
Investment Corporation (OPIC), and the U.S. Trade and Development
Agency (TDA)-- have developed a joint trade and finance initiative to
help promote economic development in Indonesia. The three
agencies will undertake to provide up to a combined $400 million to
promote trade and investment within Indonesia, especially in the
Indonesian oil and gas sector.
The two Presidents resolved to work
closely to expand trade bilaterally, regionally and globally. President
Bush agreed to provide Indonesia $100 million in additional benefits
under the Generalized System of Preferences (GSP). To
explore prospects for the further expansion of trade and commercial
ties, the two Presidents directed their Trade Ministers to re-establish
and convene the U.S.-Indonesia Trade and Investment Council at a
mutually convenient date, based on the preparatory work already
undertaken by senior officials in Jakarta on September 10. Both
leaders noted the importance of open markets and expanded trade for
economic growth and agreed on the importance of launching a new round
of WTO negotiations at Doha, taking into account the need for a
balanced agenda that reflects the interests of all WTO members.
President Bush recognized the important
role of the Indonesian military (TNI) as a national institution and
both leaders observed the importance of military reforms in Indonesia's
democratic transition. In that regard, the two Presidents
agreed to expand modest contacts and resume regular meetings between
their militaries to support Indonesia's efforts at military reform and
professionalization. Upcoming activities will include
Indonesian participation in a variety of conferences, multilateral
exercises, subject matter exchanges on issues such as military reform,
military law, investigations, budgeting and budget transparency, as
well as humanitarian assistance and joint relief operations.
President Bush and President Megawati
agreed that military-to-military relations, while important, should
constitute only one aspect of the bilateral security relationship and
that the two countries should cooperate to increase civilian
participation in Indonesian defense and security issues. To
promote this objective, the two leaders agreed to establish a bilateral
Security Dialogue under the supervision of their respective civilian
ministers of defense, which would provide an opportunity for an
exchange of views on a broad range of security and defense
issues. To further support President Megawati's efforts to
foster proper civil-military relations in Indonesia's new democratic
setting, President Bush also expressed his commitment to work with
Congress to allocate $400,000 to educate Indonesian civilians on
defense matters through the Expanded International Military Education
and Training.
President Megawati expressed her full
appreciation that Indonesia must resolve outstanding issues relating to
past human rights violations, especially in conflict
zones. She asserted that as a state based on the rule of
law, respect for human rights, and freedom of religion, Indonesia
recognizes the importance of accountability for human rights
abuses. In that context, and in the spirit of their shared
commitment to promote reform and professionalization of the military in
a democratic Indonesia, President Bush announced that the United States
would lift its embargo on commercial sales of non-lethal defense
articles for Indonesia, with individual applications to be reviewed on
a case by case basis, as is standard practice in the United States.
The two Presidents noted that both the
United States and Indonesia were founded on the belief that a nation's
diversity is a source of strength, not weakness -- a concept embodied
in their respective national mottos. They pledged to build
on this shared belief as a basis for strengthening the bonds between
their two peoples and for forging a new era of cooperation to advance
their common interests.
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