AMBASSADOR MEETS COORDINATING MINISTER BAKRIE

UNCLAS SECTION 01 OF 03 JAKARTA 001823 SIPDIS SIPDIS SENSITIVE DEPT FOR EAP/IET, A/MED AND S/ES-O DEPT FOR OES/FO, OES/EID, OES/PCI, OES/STC AND OES/IHA DEPT PASS TO USDA/FAS/DLP/HWETZEL AND FAS/ICD/LAIDIG DEPT ALSO PASS TO USDA/FAS/FAA/DYOUNG AND USDA/APHIS DEPT ALSO PASS TO USAID/ANE/CLEMENTS AND GH/CARROLL DEPT ALSO PASS TO HHS/BILL STEIGER AND AMAR BHAT PARIS FOR FAS/AG MINISTER COUNSELOR CANBERRA FOR APHIS/DHANNAPEL ROME FOR FAO NSC FOR JMELINE BANGKOK FOR RMO, CDC, USAID/RDM/A E.O. 12958: N/A TAGS: TBIO AMED CASC EAGR PGOV SOCI KFLU ID SUBJECT: AMBASSADOR MEETS COORDINATING MINISTER BAKRIE REF: A) Jakarta 1139; B) Beijing 1431 JAKARTA 00001823 001.4 OF 003 ¶1. (SBU) Summary. Coordinating Minister for Peoples' Welfare Aburizal Bakrie told the Ambassador on February 8 that, in his view, the Beijing avian influenza (AI) conference had been a failure because Indonesia alone needs at least USD 950 million to deal with AI, but would likely only receive USD 150 million. He repeatedly requested USG funding for two biosecurity level three (BSL-3) labs. Bakrie also promised to lend support to the pending bill on trafficking in women and children. The Ambassador emphasized that close U.S. cooperation with Bakrie's ministry would continue and said the Embassy would be flexible in matching its aid programs to address the Minister's agenda. The Ambassador also emphasized the invaluable expertise and assistance offered by the Naval Medical Research Unit (NAMRU-2). Bakrie seemed unusually seized with the BSL-3 issue, and his claims about GOI avian influenza (AI) funding needs and expectations of donor assistance are probably unrealistic. End Summary. USG Commitment Assured -------------- ¶2. (SBU) Accompanied by USAID Deputy Mission Director and ESTH Officer, Ambassador met February 8 with the new Coordinating Minister for People's Welfare Aburizal Bakrie to reaffirm USG support for his ministry's agenda. The Ambassador began by thanking Bakrie for his excellent collaboration with the Embassy during his tenure as Coordinating Minister for the Economy and expressed confidence that this would continue in his new capacity. The Ambassador recalled the USAID's tradition of close collaboration with the Coordinating Ministry of Peoples' Welfare, especially in the areas of health, education, and other basic social services. ¶3. (SBU) The Ambassador also highlighted U.S. financial and technical assistance in the areas of polio and avian influenza, including recent visits by experts from CDC Atlanta and the Animal Plant and Health Service (APHIS). In addition, he appealed for Bakrie's assistance in ensuring a positive atmosphere for NAMRU-2 to continue its work in Indonesia. The Ambassador commented that NAMRU-2 is an irreplaceable medical resource with world-class personnel and is an incredibly valuable resource in the fight against AI and other infectious diseases. He noted the Embassy has passed a proposed MOU to the Ministry of Foreign Affairs for consideration. Bakrie Requests Aid -------------- ¶4. (SBU) Minister Bakrie began by recalling his good working relations with the Ambassador during his tenure at his previous job and said he expects this to continue. He expressed gratitude for the Embassy's collaboration and the USG's years of generous assistance to Indonesia and acknowledged the importance of NAMRU-2's contribution to fighting AI and other infectious diseases. He promised to monitor closely the negotiations regarding NAMRU-2's status. JAKARTA 00001823 002.4 OF 003 Bakrie asked USAID to review its assistance package vis-- vis his ministry's shifting priorities. The Ambassador responded that the Embassy would be flexible since its mission is to help Indonesia develop into a peaceful, successful and prosperous nation. ¶5. (SBU) Bakrie also used the occasion to repeatedly plead for USG funding for BSL-3 labs. He stressed that it is important for Indonesia to acquire these labs and suggested a reconfigured USAID budget might accommodate this. USAID Deputy Director Cunnane also mentioned willingness to be flexible when programming additional funds for AI, but noted USAID's limited budget. Bakrie said the GOI needed USD 10 million to fund two labs: one at the University of Indonesia in Jakarta and the other at the Bogor Institute of Agriculture. (Note: The latter seems better prepared in personnel and infrastructure to absorb such a major and costly upgrade). The Ambassador noted that governments often must weigh how much to fund worthwhile but expensive labs versus basic infrastructure. For instance, the Ambassador noted that polio's reappearance in Indonesia after a decade's absence reflects the dangers posed by a neglected national health infrastructure, although he admitted that Indonesia's polio problem is also partly due to the challenges posed by decentralized power. He said he understood that Japan and Indonesia were interested in building BSL-3 labs through the Ministry of Agriculture, a possibility that elicited a Bakrie scoff about "high-cost" loans. Beijing Conference "a Failure?" -------------- ¶6. (SBU) Bakrie also bemoaned the "failure" of the donor pledging conference in Beijing (Ref B),noting that while the World Bank was pleased with the USD 1.9 billion pledged for five years, Indonesia alone needed at least USD 950 million to deal with avian influenza (AI). He confided that while his government had hoped for USD 700 million, rumor had it that Indonesia would probably receive USD 150 million over three years, a sum he dismissed as "peanuts". He added that the GOI planned to budget USD 150 million over three years to address avian influenza. (Note: The Ministry of Agriculture received USD 11.5 and 19.9 million for AI in 2005 and 2006 respectively (Ref A),and we believe the Health Ministry's AI budget could be on the same order of magnitude. End Note.) Other Issues -------------- ¶7. (SBU) The Ambassador also took the opportunity to invite the Minister to the launching February 15 of USAID-funded "Safe Water Systems" (Aman Tirta) project or Air RahMat. The project provides simple low-cost technology to treat water and is designed to purify water at the household level. Bakrie accepted the invitation, noting that it was indeed a worthwhile program. The Ambassador also urged Bakrie to support the pending bill on trafficking in women and children, which he said was a very good bill that enjoyed support in parliament (the DPR). Bakrie promised to lend JAKARTA 00001823 003.4 OF 003 support to the bill. In closing, the Ambassador reiterated the Embassy's commitment to stay the course in helping Indonesia and promised that the Embassy would remain mindful of the GOI shifting socioeconomic priorities in designing its assistance package. ¶8. (SBU) Comment: Bakrie is new to his job, and we take his comments about the Beijing conference with a grain of salt. His approach to discussions with donors about resources shows the influence of his long experience in dealing with international creditors as a businessman--he often throws very large numbers on the table with the full understanding that the final figure will be much more modest. PASCOE