APCO Worldwide is spreading word that Indonesia, the world's most populous Muslim nation, is a staunch U.S. ally committed to combating terrorism.

CEO Margery Kraus, who is traveling, signed the Grey Global Group unit's engagement letter with Indonesia's Ministry of Communication and Information. It promised a six-month international PA program to promote positive U.S./Indonesia ties.

APCO, which has an office in Jakarta, bills the Indonesians on a time and material basis.

Barry Schumacher, who handles the Indonesia account, told O'Dwyer's that APCO will arrange a trip for Indonesian notables to Washington, D.C., following the country's presidential vote run-off on Sept. 20.

APCO will set up meetings with people on Capitol Hill, and conduct media outreach for its client.

The group will talk about diplomatic ties, democratic reform and cooperation on the terror front, Schumacher said.

Indonesia's anti-terror image received a jolt on July 22 when a court ruled unconstitutional a law used to convict more than 30 people for the October '02 bombing of a Bali nightclub that killed 202 people.

Police today said they would not press charges against Muslim cleric, Abu Bakar Bashir, who heads the Jemaah Islamiah terror group, that has been blamed for the Bali attack, as well the `03 bombing of the J.W. Marriott Hotel in Jakarta.