OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
Executive Office of the President
Washington, D.C.
June 22, 2005

United States and Indonesia Meet Under Trade and Investment Framework
Agreement

U.S. officials met June 20-21 in Washington, D.C. with their Indonesian
counterparts for the second meeting in three months under the
United States-Indonesia Trade and Investment Agreement (TIFA).

The two sides agreed to jointly examine how to deepen their trade
relationship and to conduct associated capacity building projects.
They also agreed to meet again later this year to continue their dialogue.

The meeting, led by Assistant U.S. Trade Representative for Southeast
Asia and Pacific Affairs Barbara Weisel and Halida Milyani, Special
Assistant to the Indonesian Minister of Trade, was extremely
constructive with wide-ranging and in-depth discussions of outstanding
bilateral issues as well as regional and bilateral issues. The
bilateral agenda included discussion about work under a joint action
plan to improve intellectual property protection in Indonesia. They
also discussed addressing market access issues related to customs and
agriculture and measures to improve Indonesia's investment climate,
including the government's anti-corruption campaign, for which the U.S.
Government expressed its strong support. The two sides discussed the
possible pursuit of an understanding to combat illegal logging, which
would establish a framework for cooperation to better protect
Indonesia's timber resources and sensitive habitats from illegal
logging. Finally, they considered trade capacity building that could
support the joint efforts to enhance our trade and investment
relationship.

The United States and Indonesia also discussed coordination on APEC and
WTO issues. Indonesia is an important voice in the Doha Development
Agenda negotiations, particularly as a representative of developing
country interests. The United States appreciated the opportunity to
consult with Indonesia on key aspects of the WTO negotiations and to
reaffirm each country's commitment to an ambitious result in these
negotiations.

The United States and Indonesia have intensified their discussions under
the 1996 TIFA as envisioned under the Enterprise for ASEAN Initiative
(EAI), which was announced by President George W. Bush in October 2002.
As part of this initiative, the U.S. Government is seeking to further
strengthen U.S. trade and investment ties to ASEAN, both bilaterally and
regionally. The EAI offers the prospect of bilateral FTAs with ASEAN
members that have TIFAs with the United States, are WTO members, and are
committed to economic reforms and openness.

Two-way trade between the United States and Indonesia totaled $13.5
billion in 2004, up 12.5 percent over the previous year. Indonesia is
part of the ten-member Association of Southeast Asian Nations, which
collectively is fourth largest market of the United States. With
continued strong economic growth anticipated in ASEAN countries and a
regional population of about 500 million, the United States anticipates
significant trade and investment opportunities for U.S. companies in
this region.

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