As has been previously been reported, President Obama was scheduled to visit Indonesia March 20-22 where he would be a state guest of Indonesia’s President, Susilo Bambang Yudhoyono. White House Press Spokesman, Robert Gibbs, announced this morning that Obama would delay his trip by 3 days so he can remain to support his health care legislation. I am impressed that he didn't cancel his trip altogether or postpone it indefinitely. This should help continue this Administration's strong moves to put southeast Asia and Indonesia much more on par with other regions vis a vis US diplomacy. Although the Bush administration maintained good connections in the region and with Indonesia, US preoccupations with Iraq and Afghanistan prevented the full range of diplomatic contact that the region and country deserves.
During the upcoming visit, President Obama is expected to sign a “comprehensive partnership” agreement, a document that will lay out a structure for a more intensive government to government relationship on a broad range of topics: climate change/environment, food security, education, trade and investment, security cooperation. His other activities are yet to fully emerge and its regrettable that his delay prevents him from taking his wife and daughters. Obama, clearly could make a much stronger impression in family-oriented Indonesia with them. Indonesia's are very excited to receive someone whom they claim is part of their family and its clear Obama relished the opportunity to show his family his old school, neighborhood and foods. Hopefully he will get a second chance to do this.
While the impetus for the comprehensive partnership agreement was clearly from Indonesia—which has signed similar agreements recently with China, India, South Korea, and Japan—the US has embraced the process. Combined with other actions and activities such as signing the ASEAN Treaty of Amity and Cooperation and establishing an ambassador for ASEAN, US diplomacy with Southeast Asia has been significantly rebalanced.
It is not clear yet what the “takeaways” for US business will be in the agreement, given that it is not a binding document such as a treaty and does not supersede existing law in either country. US and Indonesia businesses, however, did express their suggestions for the partnership through several forums and the agreement should --at a minimum-- increase the chance of freeing existing bottlenecks that inhibit more trade and investment .
S & P Upgrades Indonesia’s Rating
S & P has upgraded Indonesia’s sovereign foreign currency rating to BB from BB- with positive outlook, the first upgrade in 4 years and highest since 1998. This puts Indonesia’s rating on par with Turkey and one notch below investment grade. Indonesia’s Finance Minister, Sri Mulyani has made this her goal for 2010. The hard work of Indonesia, to put its financial house in order, is paying off. Indonesia's cost of borrowing will drop, increasing the chances that job creating investment can come to the country. Why on earth did its Parliament spend months and months trying to get rid of one of the officials most responsible for making this great development happen ?
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