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Viewing cable 06JAKARTA12939, INDONESIA SEEKS COMPACT ELIGIBILITY, APPRECIATES

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Reference ID Created Released Classification Origin
06JAKARTA12939 2006-11-01 10:35 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Jakarta
VZCZCXRO6173
PP RUEHLMC
DE RUEHJA #2939/01 3051035
ZNR UUUUU ZZH
P 011035Z NOV 06
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 1715
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEHLMC/MILLENNIUM CHALLENGE CORP 0034
UNCLAS SECTION 01 OF 02 JAKARTA 012939 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
AIDAC 
 
DEPT FOR SECRETARY RICE 
AID FOR ADMINISTRATOR TOBIAS 
TREASURY FOR SECRETARY PAULSON 
DEPT PASS USTR FOR AMBASSADOR SCHWAB 
MCC FOR AMBASSADOR DANILOVICH 
 
E.O. 12958: N/A 
TAGS: EAID EINV ECON KMCA ID
SUBJECT:  INDONESIA SEEKS COMPACT ELIGIBILITY, APPRECIATES 
THRESHOLD PLAN APPROVAL 
 
REF: Jakarta 12687 
 
Embassy Jakarta received on November 1 the following letter 
from the Indonesian Minister of Finance and the Minister of 
State for National Development Planning/Chairman of National 
Development Planning Agency. 
 
BEGIN TEXT 
 
Ref No.: S-462/M.K.010/2006 
Ref No.: 6462/M.PPN/10/2006 
 
H.E. Ambassador John J. Danilovich 
Chief Executive Officer 
Millennium Challenge Corporation 
875 Fifteenth St. NW 
Washington, D.C. 20005 
USA 
 
Excellency, 
 
On behalf of the Government of Indonesia, please allow us to 
express our sincere appreciation regarding your support for 
Indonesia's Threshold Program.  The Threshold Program will 
bolster our ongoing reforms and its approval is a welcome 
recognition that our hard work in the areas of Ruling 
Justly, Investing in People and Economic Freedom is on the 
right track.  We also welcome the Threshold Program as one 
more example of the strengthening ties between Indonesia and 
the United States that have seen such great progress over 
the past two years. 
 
To build upon these accomplishments and help maintain the 
momentum of reform and growth in Indonesia, we hope that on 
November 8th the Board will look favorably upon Indonesia' 
Compact qualification.  The Government has now successfully 
completed almost two years in office, with tangible progress 
in its principal national development missions to realize a 
Safe and Peaceful Indonesia, a Just and Democratic 
Indonesia, and a Prosperous Indonesia through 
transformational reforms and development programs.  We have 
progressed on our reform agenda against a backdrop of 
extraordinary circumstances in 2004-2006.  The devastating 
natural disasters in Aceh, Nias, Yogyakarta, and South 
Central and West Java, while posing enormous challenges, 
have not deterred us from moving ahead on national economic 
and social priorities.  In parallel, the Government has also 
made marked progress on the governance front, by 
strengthening key institutions and considerably enhancing 
transparency. 
 
We are proud to have already achieved significant progress 
in the areas of ruling justly, investing in people and 
economic freedom.  It will, however, take time for those 
performance indicators to be reflected in internationally 
published statistical data, particularly as the 
decentralization process, which has enhanced governance and 
service delivery throughout Indonesia, complicates the 
capture of key MCC data at the national level.  We would 
like to take the opportunity therefore to highlight some of 
our recent key accomplishments and demonstrations of 
commitment towards those goals reflected by the MCC 
framework: 
 
-- Our 2007 budget proposes record increases in spending in 
the areas of education, health and investing in people. 
This is in addition to our social spending and anti-poverty 
program being financed through our fuel subsidy decreases. 
 
-- We have increased our allocations for anti-corruption 
efforts, building upon our commitment to combating and 
controlling corruption in Indonesia and strengthening those 
lasting institutions dedicated to this goal. 
 
-- Our National Medium-Term Development Plan for 2004-2009 
is a comprehensive, realistic strategy for enhancing 
sustainable growth, alleviating poverty and combating 
corruption which is being implemented across the Government. 
 
As our significant efforts during the last two years to 
promote good governance, combat corruption, enhance poverty 
 
JAKARTA 00012939  002 OF 002 
 
 
alleviation, invest in people by significantly increasing 
education and health spending and encourage economic reform, 
produce positive outcomes for all Indonesians, we will 
continue to build upon these accomplishments. 
 
The Threshold Program will bolster existing efforts in the 
areas of immunization and control of corruption, and we are 
committed to fully taking advantage of the Threshold 
opportunity.  Additionally, we look forward to Indonesia's 
consideration for Compact status that would provide 
additional means for our continued transformative 
development efforts that support our shared vision for a 
stable, democratic and economically vibrant Indonesia. 
 
Please accept the assurance of our highest consideration, we 
remain. 
 
(Signed) 
Sri Mulyani Indrawati 
Minister of Finance 
 
(Signed) 
H. Paskah Suzetta 
Minister of State for National Development Planning/ 
Chairman of National Development Planning Agency 
 
Cc.: 
 1. H.E. President of the Republic of Indonesia 
 2. H.E. Vice President of the Republic of Indonesia 
 3. H.E. Ms. Condoleeza Rice, US Secretary of State (Chair, 
MCC) 
 4. Coordinating Minister of Economic Affairs, the Republic 
of Indonesia 
 5. Minister of Foreign Affairs, the Republic of Indonesia 
 6. Mr. Henry M. Paulson, Jr., Secretary of Treasury (Vice 
Chair, MCC) 
 7. Ms. Susan C. Schwab, US Trade Representative 
 8. Mr. Randall Tobias, USAID Administrator 
 9. H.E. Ambassador of the Republic of Indonesia to the 
United States of America 
 10. H.E. Ambassador of the United States of America to 
Indonesia 
 
END TEXT 
 
HEFFERN