The government has expressed guarded optimism that the United States will not extend its 13-year military embargo on Indonesia.

Even if Congress maintains the ban, Indonesia can still expect the U.S. administration to seek alternative policies that would enable Washington to export the equipment Jakarta needs, presidential spokesman Dino Pati Djalal said on Tuesday.

Dino said a renewed campaign by several U.S. lawmakers to convince President George W. Bush's administration to extend its military embargo on Indonesia was far from being guaranteed success in Congress.

"The embargo decision is still being debated at the Congress. From the language of the debate, we are still optimistic that the embargo will not be extended. We should see developments within the next two weeks," said Dino.

Bush is seeking approval from Congress for US$20.9 billion in foreign aid that includes military assistance for several countries, including Indonesia.

A conference of Senate and House of Representatives lawmakers agreed last week to maintain restrictions on foreign military finance and on exports of lethal military equipment to Indonesia until Secretary of State Condoleezza Rice certifies that the Indonesian Military (TNI) met certain conditions, including the prosecution and punishment of TNI officers involved in gross human rights violations in Indonesia and East Timor, and the implementation of reforms "to improve civilian control of the military."

Dino said that should Congress extend the embargo, the U.S. administration could still use veto Congress' decision.

However, he added that the any veto would only be issued if it would benefit U.S. security and defense interests in the long run.

"With regard to military cooperation, President Susilo will meet U.S. President George W. Bush during the annual APEC meeting in South Korea to specifically discuss the issue," said Dino.

Indonesia's military equipment has been steadily deteriorating as a result of the arms ban, which was slapped on the country following the atrocities in the former province of East Timor in 1992.