United States - Indonesia Relations

As this comprehensive report published by the U.S. Department of State will reflect, the United States is playing a HUGE role in Indonesia's political, judicial, economic, health, educational, and environmental development.  After reading how much aide the U.S. is providing to Indonesia, I wonder the extent to which the average Indonesian even realizes how much we are assisting them....



U.S. - INDONESIAN RELATIONS

The United States has important economic, commercial, and security interests in Indonesia. It remains a linchpin of regional security due to its strategic location astride a number of key international maritime straits, particularly the Malacca Strait. Relations between Indonesia and the U.S. are positive and have advanced since the election of President Yudhoyono in October 2004. The U.S. played a role in Indonesian independence in the late 1940s and appreciated Indonesia's role as an anti-communist bulwark during the Cold War. Cooperative relations are maintained today, although no formal security treaties bind the two countries. The United States and Indonesia share the common goal of maintaining peace, security, and stability in the region and engaging in a dialogue on threats to regional security. Cooperation between the U.S. and Indonesia on counter-terrorism has increased steadily since 2002, as terrorist attacks in Bali (October 2002 and October 2005), Jakarta (August 2003 and September 2004), and other regional locations demonstrated the presence of terrorist organizations, principally Jemaah Islamiyah, in Indonesia. The United States has welcomed Indonesia's contributions to regional security, especially its leading role in helping restore democracy in Cambodia and in mediating territorial disputes in the South China Sea. During Secretary’s Clinton’s visit to Indonesia in early 2009, she and Foreign Minister Wirajuda announced that the U.S. and Indonesia would begin discussions on developing a comprehensive partnership between the two countries.

The U.S. is committed to consolidating Indonesia's democratic transition and supports the territorial integrity of the country. Nonetheless, there are friction points in the bilateral political relationship. These conflicts have centered primarily on human rights, as well as on differences in foreign policy. The U.S. Congress cut off grant military training assistance through International Military Education and Training (IMET) to Indonesia in 1992 in response to a November 12, 1991, incident in East Timor when Indonesian security forces shot and killed East Timorese demonstrators. This restriction was partially lifted in 1995. Military assistance programs were again suspended, however, in the aftermath of the violence and destruction in East Timor following the August 30, 1999, referendum favoring independence.

Separately, the U.S. had urged the Indonesian Government to identify and bring to justice the perpetrators of the August 2002 ambush murders of two U.S. teachers near Timika in Papua province. In 2005, the Secretary of State certified that Indonesian cooperation in the murder investigation had met the conditions set by Congress, enabling the resumption of full IMET. Eight suspects were arrested in January 2006, and in November 2006 seven were convicted.

In November 2005, the Under Secretary of State for Political Affairs, under authority delegated by the Secretary of State, exercised a National Security Waiver provision provided in the FY 2006 Foreign Operations Appropriations Act (FOAA) to remove congressional restrictions on Foreign Military Financing (FMF) and lethal defense articles. These actions represented a reestablishment of normalized military relations, allowing the U.S. to provide greater support for Indonesian efforts to reform the military, increase its ability to respond to disasters and participate in global peacekeeping operations, and promote regional stability.

Under the terms of the FY 2008 FOAA, signed into law in December 2007, Congress did not reimpose restrictions. However, it prevented a portion of U.S. security assistance from being released before the Secretary of State reported on the status of certain measures of military reform, of accountability for past human rights abuses, of public access to Papua, and of the investigation into the 2004 murder of a prominent human rights activist.

Regarding worker rights, Indonesia was the target of several petitions filed under the Generalized System of Preferences (GSP) legislation arguing that Indonesia did not meet internationally recognized labor standards. A formal GSP review was suspended in February 1994 without terminating GSP benefits for Indonesia. Since 1998, Indonesia has ratified all eight International Labor Organization core conventions on protecting internationally recognized worker rights and allowed trade unions to organize. However, enforcement of labor laws and protection of workers' rights remain inconsistent and weak in some areas. Indonesia's slow economic recovery has pushed more workers into the informal sector, which reduces legal protection and could create conditions for increases in child labor.

Development Assistance From the United States to Indonesia

The U.S. Agency for International Development (USAID) and its predecessor agencies have provided development assistance to Indonesia since 1950. Initial assistance focused on the most urgent needs, including food aid, infrastructure rehabilitation, health care, and training. Throughout the 1970s and 1980s, a time of great economic growth in Indonesia, USAID played a major role in helping the country achieve self-sufficiency in rice production and in reducing the birthrate. Today, USAID assistance programs focus on basic and higher education, democratic and decentralized governance, economic growth, health, and the environment.

Improving Education: In 2003, USAID began managing a $157 million, five-year Presidential Education Initiative to energize and improve the quality of education in Indonesia’s state-run religious and public schools. The approach has emphasized critical thinking and reasoning skills, lively lessons, engaged teachers, and interested parents to promote tolerance, employment readiness, and student-centered learning for a participatory democracy. Since the start of the Presidential Initiative, more than 1,272 schools, 21,069 educators, and 345,983 students have benefited directly from U.S. Government assistance to improve teaching and learning, better school management, and increase community participation. At both national and local levels this Presidential Initiative has ignited donor and Indonesian interest in joint coordination and cooperation to extend USAID practices across the far-flung archipelago. The initiative has leveraged $555,000 from non-U.S. Government sources where activities are being implemented in 3,200 new schools and thereby laying the base for a more widely established and enduring legacy. By 2010, the program is expected to reach 9,000 schools with the promotion of ownership and dissemination of new methods for delivering basic education assistance directly to the local level where it can be more effectively and accountably targeted.
 
Decentralized Basic Education (DBE): As the main component of the Indonesia Presidential Education Initiative, the Decentralized Basic Education Project focuses on improving the quality and relevance of basic education in primary and junior secondary schools. Through technical assistance and training, the program has three goals: to assist local governments and communities to manage education services more effectively; to enhance teaching and learning to improve student performance in key subjects such as math, science, and reading; and to ensure that Indonesia’s youth gain more relevant life and work skills to better compete for jobs in the modern economy. USAID successfully utilizes public-private alliances to mobilize corporate sector resources for education. In partnership with ConocoPhillips, USAID is helping rehabilitate schools damaged by the May 2006 earthquake in Yogyakarta as well as Central Java; and Intel is helping teachers use technology in their classrooms. Partnerships with three U.S. universities--the University of Pittsburgh, Florida State University, and the University of Massachusetts--and 14 Indonesian universities are enabling teachers participating in the program to receive academic credit for their work, helping them meet new Government of Indonesia recertification requirements. DBE also promotes the use of information technology for education; the importance of early childhood education; in-service teacher training; and non-formal work and life skills.

Opportunities for Vulnerable Children: This program prepares the foundation for an inclusive education system by focusing on educational rights and needs to serve children with visual impairment (blindness and low vision) and other disabilities, including intellectual and cognitive disabilities, hearing impairments, learning disabilities, physical disabilities, and autism, by using an effective model for inclusion of special needs students within the public education infrastructure that benefits both inclusive students and other disenfranchised populations. These activities have led to a substantial increase in the number of children with special needs attending school, and increases in the availability and quality of inclusive education services. Replicable models have been implemented in Aceh, South Sulawesi, and Central Java. In partnership with the Ministry of National Education (MONE), local universities and disabled persons organizations (DPOs), and the Hilton Perkins International, a pre-service university-level program is being developed to equip new teachers with effective teaching strategies and clear understanding of children with special needs.

Sesame Street Indonesia/Jalan Sesama: In partnership with the Sesame Workshop, USAID is supporting the development of a new Indonesian co-production of the renowned Sesame Street television show. Indonesia’s “Jalan Sesama” is one of the largest partnerships between USAID and the Sesame Workshop. By watching “Jalan Sesama” millions of Indonesian children will be better equipped to start and stay in school. The program went on the air in 2007 and more than 3 million Indonesian children have viewed the broadcast. The show is currently ranked second in its time slot.

Higher Education: A partnership with the University of Kentucky is assisting three Indonesian universities to upgrade their academic programs in areas critical for economic growth such as agriculture, business, engineering, and public administration. A three-way partnership between USAID, the Government of Aceh Province and Chevron supports the development of the Aceh Polytechnic, a new institution to provide quality education in applied technology fields such as information technology and electrical engineering that are in high demand in the region.

In keeping with presidents' joint higher education initiative announced in June 2010, USAID is initiating three new ventures in Indonesia. The Higher Education Leadership and Management Program will help reinvigorate the administration and learning environment of tertiary education. An additional $17 million will be used to expand the number and depth of partnerships between Indonesian and U.S. universities. Finally, a special investment will engage the resources of higher education institutions in improving the quality of math, science, and technology instruction throughout Indonesia's elementary schools.

Effective Democratic Governance: USAID supports the consolidation of Indonesia’s democracy through assistance for effective and accountable local governance, mitigating conflict, and ensuring sustained peace. The U.S. Government has dedicated $129 million over five years (2004-2009) for furthering these aims.

Support for Peace Building Initiatives: USAID is a key donor in mitigating social violence and enhancing peace-building efforts in formerly conflict-affected areas including Nanggroe Aceh Darussalam, and Central Sulawesi. USAID supports conflict-sensitive approaches to development, technical capacity building, livelihood development, civil society and academic input in relevant legislative drafting, and transition assistance to conflict-affected persons.

Justice Sector Reform: USAID supports the bureaucratic reform efforts of the Attorney General’s Office (AGO) through technical assistance and training for prosecutors. USAID also works with the Supreme Court and the AGO on their bureaucratic reform efforts with the overriding aim of developing a more effective, professional, transparent, accountable, and independent justice system.

Legislative Strengthening: USAID provides support to the National House of Representatives' capacity building and reform efforts. Activities include promoting constituency and media outreach, developing capacity to draft and analyze legislation, operational budgeting, and supporting legislative commissions to carry out their functions.

Local Governance Strengthening and Decentralization Support: USAID supports Indonesia’s decentralization by helping local governments become more democratic, more competent at the core tasks of governance and more capable of managing public services and resources. In more than 60 districts and cities, the program offers technical assistance to local administrations, local legislatures and civil society in participatory planning, budgeting, financial management, and management systems. At the national level, USAID supports the Government of Indonesia and civil society to improve decentralization laws, policies, and regulations.

Elections and Political Processes: USAID supported the 2009 parliamentary and presidential elections through international and local non-governmental organizations. The election support package included: political party development, election administration, voter education, election monitoring and oversight, and strengthening of the legal framework.

Promoting Democratic Culture: USAID supports civil society organizations and government institutions in efforts to promote and protect citizens' rights. Activities under this program include human rights, advocacy, capacity building, and training for both civil society and local government.

Improving Management of Natural Resources: USAID supports the improvement of natural resource management and water and sanitation. Programs aim to protect forest biodiversity with a focus on orangutan habitat, and to improve the management of forests and watersheds. Ensuring the availability of safe water involves protecting water sources as well as strengthening the capacity of water and sanitation services. USAID's 2009-2014 strategy will broaden the scope of USAID assistance to include marine ecosystems and clean energy as well as forest management and water and sanitation services. Climate change adaptation and mitigation and disaster risk reduction will be cross-cutting themes in the new strategy.

Improved Management of Forest Ecosystems: USAID is building strong partnerships for forest protection and sustainable resource management. The new approach will focus on policy reform, building incentives for sustainable forest practices, and strengthening law enforcement. USAID will work with Indonesia’s producers and communities to increase the supply of legal and sustainable products to meet growing international market demand.

Improved Management of Marine Ecosystems: USAID will support the Coral Triangle Initiative National Plan of Action to preserve rich marine biodiversity and dampen the rate of declining fish stocks. The strategy involves building the institutional capacity of the Ministry of Marine Affairs and Fisheries to lead the management of coastal areas across 17,500 islands. Supporting components include the development of an ecosystems-based fisheries management system to support the sustainable use of marine resources and technical assistance for more effective management of marine protected areas. USAID will engage coastal communities to protect their resources, adopt sustainable alternative livelihoods, and adapt to climate change and reduce the risks associated with disasters.

Increased Access to Safe Water and Adequate Sanitation: USAID assistance in building institutional capacity and applying best management practices will result in increased access to safe drinking water and adequate sanitation in urban areas. Technical assistance will aim to mobilize demand for affordable water and adequate sanitation, improve the capacity of water utilities and local governments to provide safe water and sanitation services, and develop a policy and financing environment that will enable expansion of services to the urban poor.

Increased Access to Clean Energy: Activities to be supported under this agreement in the energy sector will help catalyze a lower carbon development trajectory while promoting sustainable development and economic growth. Activities will address the primary barriers to clean energy development in Indonesia, engaging a variety of stakeholders and utilizing the expertise of the private sector to promote clean energy development.

Tsunami Reconstruction: The U.S. Government was one of the first donors to respond to the disaster. Through numerous grants to non-governmental organizations (NGOs), international organizations, and UN agencies, USAID has helped stabilize the humanitarian situation in Aceh, avert a public health crisis, and provide relief services to survivors. Most of the U.S. tsunami relief programs are now complete, although our efforts toward the construction of the Aceh west coast highway continues. The U.S. will remain actively engaged in conflict prevention and resolution efforts in Aceh.

Improved Health for Indonesians: The U.S. Government provides technical assistance to improve the availability and quality of key health services throughout Indonesia. Efforts support maternal, neonatal, and child health, and prevention and control of priority infectious disease threats, such as multi-drug resistant TB, HIV/AIDS, malaria, and avian influenza (AI).

The delivery of basic human services at the local level is critical to the health of Indonesians. Under Indonesia’s decentralization law, local governments are responsible for the delivery of health care, water, and sanitation. To help improve the health and quality of life for vulnerable populations, USAID supports an integrated program that strengthens the capacity of local governments and partners to improve access to and quality of health services and prevention efforts in the public sector, private sector, and communities.

Maternal, Neonatal, and Child Health: USAID is currently working to support the Government of Indonesia’s goals to reduce maternal and newborn mortality. With some of the highest maternal mortality rates in Southeast Asia, complications such as bleeding and convulsions during deliveries are the major causes of maternal deaths. Asphyxia, or breathing difficulties, and infections account for many deaths in newborn babies. USAID also supports the use of zinc to improve children’s recovery from diarrhea. Support for the global goal of eradicating polio continues, with a focus on technical assistance for surveillance.

Avian and Pandemic Influenza: Indonesia has the world’s highest number of confirmed human AI infections and the highest fatality rate (82%). As of February 2009, the World Health Organization (WHO) reported 141 confirmed human infections, which accounted for 35% of all cases worldwide. The highly pathogenic influenza A virus H5N1 (AI) is widespread in Indonesia. With the emergence of a pandemic H1N1 influenza strain, there is concern that a new highly transmissible strain of influenza could emerge from Indonesia.
 
Tuberculosis: Indonesia has approximately 500,000 new TB cases every year, 100,000 deaths annually, and an increase in multi-drug resistant TB. USAID supports strengthening the National Tuberculosis Program response to TB with training on International Standards of TB Care and improving laboratory TB diagnosis capabilities.

Malaria: USAID supports integrating prevention of malaria activities into existing maternal and child health programming in Eastern Indonesia. This integrated approach distributes bed nets to prevent malaria, while improving rates of pregnancy checkups. It has increased routine immunization coverage.

HIV/AIDS: There is a concentrated HIV epidemic in most-at-risk groups and a generalized epidemic in Papua. USAID supports behavior change interventions to prevent the spread of HIV and increasing access to comprehensive prevention, treatment, care, and support efforts throughout the country.

Recent Accomplishments: Maternal and child health programs in Indonesia significantly increased their coverage of care in FY 2008, in some cases doubling the number of women and children who benefited. These programs helped 595,000 women safely deliver babies in the presence of skilled birth attendants; provided essential care to 391,000 newborns; treated 1.2 million cases of child diarrhea; and provided 469,000 children under age five with nutrition services.

Through community outreach, the HIV/AIDS program reached 1.7 million people at high risk of HIV infection; 84,600 people received counseling and testing for HIV; and 132 local organizations were trained in HIV/AIDS programming. The national TB case detection rate rose from 20% in 2000 to 60% in 2007, with almost all public clinics implementing Directly Observed Treatment, Short-course (DOTS). More than 13,600 specialists and other health professionals were trained in International Standards of TB Care. Laboratory TB diagnosis capabilities were improved in nine provinces. Through the malaria prevention program, 157,000 pregnant women received treated bed nets and 1,237 midwives were trained to detect and treat malaria.

USAID supports national efforts to control Avian and Pandemic Influenza (API) in Indonesia. To date, USAID has established animal health surveillance and disease control networks across 324 districts in Indonesia, trained more than 27,000 village volunteers and 2,151 animal health officers, and disseminated hundreds of thousands of education and information materials. With the emergence of Influenza A (H1N1) or "pandemic flu," USAID will continue AI efforts and also help Indonesia respond to H1N1.

Principal U.S. Embassy Officials

Ambassador--Cameron R. Hume
Deputy Chief of Mission--Ted Osius
Political Counselor--Theodore J. Lyng
Economic Counselor--Peter D. Haas
Management Counselor--Michael C. Mullins
USAID Director--Walter E. North
Defense Attache--COL Russell Bailey
Consul General--Jeffrey S. Tunis
Public Affairs Officer--Don Q. Washington
Commercial Counselor--Joseph B. Kaesshaefer
Department of Agriculture Office--Dennis Voboril
Regional Security Officer--James W. Schnaible
Office of Defense Cooperation--COL Randall Koehlmoos
Legal Attache--(Acting) David C. Smith
Department of Justice Office--Gerald H. Heuett Jr.

The U.S. Embassy in Indonesia is located at Jalan Medan Merdeka Selatan 3-5, Jakarta (tel. (62-021) 3435-9000). U.S. mail to the Embassy may be addressed to FPO AP 96520.

The U.S. Consulate General in Surabaya is located at Jalan Dr. Sutomo 33, Surabaya, East Java (tel. (62-31) 568-2287).
Principal Officer--Kristen F. Bauer

The U.S. Consulate in Medan is located at Jl. Walikota no. 13, Medan, North Sumatra (tel. (62-61) 415-2200).
Principal Officer--Stanley Harsha

The U.S. Consular Agency in Bali is located at Jalan Hayam Wuruk 188, Bali (tel. (62-361) 233-605.

The State Department lifted its travel warning for Indonesia in May 2008 due to objective improvements in the security situation in the country.

For information on economic trends, commercial development, production, trade regulations, and tariff rates, contact the International Trade Administration, U.S. Department of Commerce, Washington, DC 20230.