Indonesia’s First Lady Ani Yudhoyono smiled broadly as she hugged US President Barack Obama for a friendly cheek-to-cheek kiss while President Susilo Bambang Yudhoyono looked on just minutes after both leaders met to discuss issues, including the proposed US military base in Darwin, tensions in the South China Sea and unrest in Papua.


“Apa Kabar [How are you]?” Ani Yudhoyono asked. “Baik [I’m fine],” Obama replied while entering the dining hall at the East Asian Summit (EAS) in Bali on Friday.

Obama, who earlier in the day had presided over discussions facilitating a US$20 billion-plus deal for the purchase of 230 Boeing airplanes by Indonesia’s Lion Air carrier, said what brought the US to the region was the trade, investment and commercial opportunities that exist in the Asia- Pacific region.

“For the last several days I have been talking about how we have to make sure that we have a presence in this region, and that it can result directly in jobs at home. And what we see here — a multibillion-dollar deal between Lion Air — one of the fastest-growing airlines, not only in the region, but in the world — and Boeing, is going to result in over 100,000 jobs back in the United States of America over a long period of time,” he said.

Obama, who is struggling at home to provide jobs for Americans, added there would be many more business and economic deals to be made within the region in the future.

“This is an example of how we are going to achieve the long-term goal that I set of doubling US exports over the next several years,” he said.

As China raises its stature in the region, the US president appealed to ASEAN nations, especially Indonesia, for cooperation in America’s security agenda in balancing the rising influence of China.

However, perceptions of US aggressiveness by building a de facto base in Darwin, Australia, 820-kilometers from Indonesian territory, has sent worries that it would provoke negative reactions from China, which is still engaged in territorial disputes with four ASEAN nations.

Chinese Premier Wen Jiabao said on Friday that “outside forces” had no excuse for becoming involved in a complex dispute over the South China Sea, offering a veiled warning to the US and others not to intrude in such sensitive issues.

However, during his meeting with Yudhoyono, Obama assured the Indonesian President that the move was harmless to Indonesia, while expressing US support to the country’s territorial integrity, including in Papua, despite reports of human rights abuses in the province.

“During the meeting, President Obama explained that it [the Darwin plan] was a normal bilateral agreement, and by no means had other intentions,” Presidential spokesman Teuku Faizasyah said. “He also assured us that the US respects Indonesia’s territorial integrity.”

Obama praised Indonesia during a press conference: “I thank Indonesia for promoting democracy, human rights, security and peace.” (with money you can buy everything!!!! marked by the webmaster)

Yudhoyono thanked the US for helping Indonesia, including providing $600 million to help achieve the country’s millennium development goals.

In a sign that it intends to compete with the US, China offered $10 billion in loans to ASEAN countries, on top of a pledge of $15 billion in loans 2 years ago, saying China only wanted to be friends.

“The China-ASEAN relationship is solidly based and has great potential for a promising future,” Wen said. “China will forever be a good neighbor, good friend and good partner of ASEAN. We will work closely with you to implement all the agreements we have reached to bring more benefit to our people and make greater contributions to peace and prosperity in our region.”

China will also set up a 3 billion yuan (US$473 million) fund to expand practical maritime cooperation by promoting cooperation in environmental protection, navigational safety and combating transnational crimes.