[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,

[[Page 1133]]

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.

[[Page 1134]]

    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.