    [Public Papers of the Presidents of the United States: George W. Bush (2001, Book II)]
    [September 19, 2001]
    [Pages 1132-1134]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Joint Statement Between the United States of America and the Republic of
    Indonesia
    September 19, 2001

        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,

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    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.

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        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.

    Note: An original was not available for verification of the content of
    this joint statement.