* Pompeo on five-nation Asian trip amid rising tensions with
China
* Indonesia says to enhance defence cooperation with U.S.
* Jakarta calls for greater economic cooperation with U.S.
* Indonesia has strong economic ties with China
(Adds comments from Retno and Pompeo and context on economic
ties, context on South China Sea dispute)
By Tom Allard
JAKARTA, Oct 29 (Reuters) - U.S. Secretary of State Mike
Pompeo on Thursday said Washington would find new ways to
cooperate with Indonesia in the South China Sea and respected
Jakarta's efforts to safeguard its own waters while rejecting
China's "unlawful" claims in the area.
Pompeo's visit to Indonesia comes amid a five-nation swing
through Asia, where he has sought to strengthen strategic and
economic ties amid rising tensions between the United States and
China.
In a joint news conference with his Indonesian counterpart,
Retno Marsudi, he hailed Jakarta's "decisive action" to protect
its sovereignty in the waters near the Natuna Islands, which
China also claims as its territory.
Pompeo said China's claim was "unlawful".
"I am looking forward to co-operating together in the new
ways to ensure maritime security protects some of the world's
busiest trade routes," Pompeo said in a streamed news conference
after his meeting with Indonesia's foreign minister.
Retno said she wanted a "stable and peaceful" South China
Sea where international law is respected.
Indonesia has repeatedly turned away Chinese coast guard and
fishing vessels that have entered the North Natuna Sea.
Retno said Indonesia and the United States would enhance
defence cooperation by boosting military procurement, training
and exercises, intelligence sharing, and maritime security
cooperation in the region.
Although sharing the same position in opposing China's
territorial claims in the South China Sea, Indonesian officials
have expressed concern about Washington's strident anti-China
policies and rhetoric alongside rising superpower tensions.
"I re-emphasized the need to pursue inclusive cooperation
amidst this challenging time," Retno said. "I underlined the
need for every country to be part of the solution in the
collective contribution towards world peace, stability and
prosperity."
This year, Indonesia rejected a U.S. request for landing and
refuelling rights in Indonesia for its P-8 Poseidon maritime
patrol aircraft that monitor China's military activity.
ECONOMIC COOPERATION
Retno said on Thursday she reminded Pompeo of the "free and
independent" foreign policy of Southeast Asia's largest country
and called for greater economic co-operation.
Indonesia's economic ties with China have increased at the
same time Washington has considered downgrading Indonesia's
preferential trade treatment under the Generalized System of
Preferences (GSP) facility.
That review is ongoing and Retno told Pompeo that the GSP
facility was important to both nations.
"I encouraged U.S. businesses to invest more in Indonesia,
including for projects in the outer islands of Indonesia, such
as Natuna Island," Retno added.
Next month, senior government officials say Indonesia is
expected to sign the world's biggest trade pact – the Regional
Comprehensive Economic Partnership - that involves Southeast
Asian states and China, but not the U.S.
Pompeo said he recognised the deficit in the economic
relationship of the two countries, but made no commitment to
retaining Indonesia's access to the GSP facility, which gives
more than 3,500 Indonesian products duty-free status.
"There should be much more investment here from the United
States, especially in the digital, energy and infrastructure
sectors," Pompeo said.
Pompeo also met Indonesian President Joko Widodo, commonly
known as Jokowi, on Thursday, and is scheduled to make an
address to an Islamic youth group.
"President (Jokowi) emphasised that Indonesia wants economic
cooperation between the two countries increasing in the future,
including extension of GSP facilities for Indonesia," Retno said
of Pompeo's meeting with the Indonesian leader.
She added that the president urged Pompeo to "understand
Southeast Asia and Southeast Asian countries so as to create
peace, stability and cooperation in the region".
Before his visit to Indonesia, Pompeo visited India, Sri
Lanka and the Maldives. He is scheduled to fly to Vietnam later
on Thursday.