INDONESIA ESTH HIGHLIGHTS - MARCH-JUNE 2006

UNCLAS SECTION 01 OF 04 JAKARTA 008735

SIPDIS

SIPDIS

DEPT FOR EAP/IET, OES/IET, AND OES/ETC

E.O. 12958: N/A
TAGS: SENV TPHY TBIO EIND ID
SUBJECT: INDONESIA ESTH HIGHLIGHTS - MARCH-JUNE 2006



1. Summary. President Susilo Bambang Yudhoyono (SBY)
called for thorough fire prevention planning on June 17 to
stop smoke haze export to neighboring countries. On June
27, State Minister of Environment Rachmat Witoelar released
a 2005 "State of the Environment Report" listing 65
environmental watershed areas in critical condition and
noting serious deforestation problems across Indonesia. A
Chinese company announced plans on April 18 to establish a
timber processing factory in Papua to supply the hardwood
merbau to Olympic venues in Beijing, but the Beijing Olympic
Organizing Committee announced on May 31 that none of the 24
Olympic venues "is using or will use virgin timber from
Indonesia." Minister of Forestry M.S. Kaban stated on April
9 that the Government of Indonesia (GOI) has increased the
number of national parks from 30 to 55, but it is unclear
whether the GOI has budgeted for a corresponding increase in
funding for park management and conservation. On June 19,
the head of the Jakarta Sanitation Office said the city
government would allocate Rp 10 billion (USD 1.1 million) of
2006 funds to develop a new program for coastal waste
management. On June 2, the Government of Indonesia (GOI)
announced an early termination of cooperation with the
Gibbon Foundation in the development and management of
animal protection centers in Indonesia. Experts warned on
April 30 that illegal wildlife trade threatens a number of
animal species on the island of Sulawesi. The GOI announced
new Chairmen for the National Agency for Food and Drug
Control (BPOM) on May 17 and the Agency for the Assessment
and Application of Technology (BPPT) on April 26. On May
15, Minister of Energy and Mineral Resources Purnomo
Yusgiantoro confirmed that the Indonesian Government remains
committed to building a 1,000 Megawatt (MW) nuclear power
plant in Muria Peninsula, Central Java. An international
team of experts provided seismology and tsunami warning
training to 40 representatives of GOI agencies, non-
government organizations, and universities from May 8-17 in
Jakarta. On March 23, Indonesian researchers warned that
continuing leaded gasoline use may be causing high lead
levels in the blood of Indonesia's children. End Summary.

--------------
ENVIRONMENT
--------------

Commitment to Stop Haze Export
--------------


2. On June 17, President Yudhoyono instructed governors,
regents, and heads of related regional institutions to take
"concrete actions" to prevent forest and land fires to stop
smoke haze export to neighboring countries. The President
made his remarks at a national conference for fire
prevention in Palembang, South Sumatra attended by
approximately 2,500 fire brigade teams from 28 provinces.
The Ministry of Forestry identified seven provinces with
palm oil and industrial plantations that are particularly
susceptible to fire outbreaks because farmers still use
traditional methods of land clearing. The seven include
Riau, North Sumatra, South Sumatra, Jambi, East Kalimantan,
West Kalimantan, and Bengkulu provinces. Experts told
conference participants that National Oceanographic and
Atmospheric Administration (NOAA) satellite data from 2005
reveal that 30 percent of haze originates from forested
areas while 70 percent originates from nonforested areas
such as plantations, small farms, and idle land.

Environmental Report 2005 Notes Serious Degradation
-------------- --------------


3. On June 27, State Minister of Environment Rachmat
Witoelar told a Jakarta audience that Indonesia faces
serious forest and environmental degradation that is leading
to environmental disasters. Witoelar made his remarks as
part of the release of a 295-page "State of the Environment
Report 2005" for Indonesia. The report lists 65
environmental watershed areas in critical condition, up from
the 22 listed in 1992. It notes serious deforestation
problems and underscores the government's inability to
enforce fully the 1997 Environmental Law. The report also
documents a decrease in air quality in major cities in 2005,
with only 29 clean-air days in Jakarta, 21 in Surabaya and
24 in Medan. Thirty rivers were listed as being highly
contaminated with chemical pollutants and bacterial agents,
including human waste.


JAKARTA 00008735 002 OF 004


Chinese Interest in Indonesian Timber
--------------


4. On April 18, Minister of Forestry M.S. Kaban announced
to the press that the Chinese firm China Light Industry is
contemplating a USD 1 billion investment to establish a
timber processing factory in Papua. Kaban said the company
is interested in making this investment to meet China's need
for 800,000 cubic meters of merbau timber to construct sport
facilities for the 2008 Olympics. Merbau (botanical name:
intsia spp) is a hardwood native to Papua and Papua New
Guinea used primarily for flooring. In addition, China
Light Industry has said it is also interested in building a
pulp and paper factory in Papua. However, Kaban said that
the Ministry of Forestry would only permit processed timber
to be exported at this time, ruling out log exports. As of
July 2007, the status of the project is uncertain given a
May 31 announcement by the Beijing Olympic Organizing
Committee that none of the 24 Olympic venues "is using or
will use virgin timber from Indonesia."

Indonesia National Parks Areas Increased
--------------


5. Kaban also announced on April 9 that the GOI has
increased the number of national parks from 30 to 55. He
added that this effort indicates the GOI's high level of
commitment to conserving and protecting Indonesia's natural
resources. However, it is unclear whether the GOI has
budgeted for an increase in funding for park management and
conservation for an expanded national park system.
According to the Ministry, Indonesia has 120.35 million
hectares of forest, of which 59 million hectares are in
critical condition and in need of rehabilitation.

Jakarta Money for Coastal Waste Management
--------------


6. On June 19, the head of the Jakarta city Sanitation
Office said the city government would allocate Rp 10 billion
(USD 1.1 million) of 2006 budget funds to develop a new
program for coastal waste management. The Jakarta city
government is seeking to develop an integrated coastal
management solution to clean up Jakarta Bay in cooperation
with the West Java and Banten provincial governments and the
central government. As part of this effort, the Jakarta
city government has said it will likely create a special
authority to manage coastal wastes. The waste volume
entering Jakarta Bay now reaches 300 cubic meters a day of
mostly plastic and industrial waste from Jakarta, West Java,
and Banten Provinces, according to environmental observers.
Currently, the Jakarta Sanitation Office uses six boats to
net coastal waste with the capacity of collecting 220 cubic
meters of waste per day.

GOI Cooperation with Gibbon Foundation Terminated
-------------- --------------


7. The MOF announced in a June 2 press release that the
Ministry's Directorate General for Forest Protection and
Nature Conservation (PHKA) had ceased cooperation with the
Gibbon Foundation in the development of "animal protection
centers" since April 2006. The PHKA said it terminated the
cooperation agreement early due to unspecified
"disagreements and distrust" between the two parties. The
PHKA had been cooperating with the foundation since 2002,
with the agreement scheduled to continue through 2007.
Under its agreement with the PHKA, the Gibbon Foundation
developed and managed animal protection centers to implement
the Convention on International Trade in Endangered Species
(CITES) resolution. Since 2002, the Foundation had helped
establish seven animal protection centers in Tegal Alur
(Jakarta),Gadog and Cikananga (West Java),Yogyakarta,
Patung Sewu (East Java),Bali and Tasekoki (North Sulawesi).
With the early termination, the Ministry banned the Gibbon
Foundation from conducting conservation activities and
managing the centers. The termination of cooperation
between the PHKA and the Foundation will likely require the
Ministry to consolidate some centers, assume the operational
costs for all centers and identify foreign donors.

Sulawesi Species Threatened
--------------


8. Growing illegal wildlife trade is threatening a number

JAKARTA 00008735 003 OF 004


of birds, mammals, reptiles, and amphibians in Sulawesi with
extinction, according to a World Conservation Union (WCU)
report released on April 30. The Program Coordinator of the
Sulawesi Wildlife Conservation Society (WCS) said wildlife
trade in many rare animals flourishes in traditional markets
and is evidence of the region's lack of appreciation for
natural wildlife. For example, according to the WCU, the
rare crested black macaque (macaca nigra),is traded in
local markets. Seven of 11 world macaque species are from
Sulawesi. According to WCU estimates, the Macaca nigra
population plummeted from 500 per square kilometer in 1999
to 49 per square kilometer in 2003. The WCU report notes
Sulawesi has 127 species of mammals (79 indigenous species),
233 species of birds (103 indigenous species),and 104
species of reptiles (29 indigenous species).

SCIENCE AND TECHNOLOGY
--------------

New Faces at BPOM and BPPT
--------------

9. On May 17, Minister of Health Dr. Siti Fadilah Supari
inaugurated Dr. Husniah Rubiana Thamrin Akib as the new
Chairman of National Agency for Drug and Food Control
(BPOM),replacing Dr. Sampurno. The BPOM performs food and
drug safety functions equivalent to those of the U.S.
Federal Drug Administration. Previously, Dr. Husniah served
as the Director of Rational Drug Use Development in the
Ministry of Health's Directorate General of Pharmaceutical
and Medical Equipment Development. She received her medical
degree from the University of Indonesia.


10. Minister of Research and Technology Kusmayanto Kadiman
inaugurated Professor Dr. Said Djauharsyah Jenie as the new
Chairman of the Agency of Assessment and Application of
Technology (BPPT) on April 26. The BPPT formulates national
technology development policy and recommends technological
applications for GOI ministries and government-linked
bodies. Dr. Jenie is from Solo, Central Java and received a
doctoral degree in aerodynamics from the Massachusetts
Institute of Technology. Previously, he served as the
Deputy Chairman of BPPT for Manufacturing and Design
Technology. Jenie's twin brother, Prof. Umar A. Jenie, is
the Chairman of the Indonesian Institute of Sciences (LIPI).

Planning for A Nuclear Power Plant
--------------


11. On May 15, Minister of Energy and Mineral Resources
Purnomo Yusgiantoro confirmed that the Indonesian Government
remains committed to building a 1,000 Megawatt (MW) nuclear
power plant in Muria Peninsula, Central Java. According to
press reports, the GOI plans to conduct a tender in 2008 and
begin construction in 2009 with operations targeted to start
in 2015-2016. Project costs for a 1,000 MW nuclear power
plant could reach Rp 9 trillion (USD 1 billion),according
to Purnomo. The nuclear power plant is part of the GOI's
target to add 4,000 MW of electric power in the North Java
coastal areas by 2016.

Seismology and Tsunami Training
--------------


12. The U.S. Agency for International Development (USAID),
the U.S. Geological Survey, UNESCO's Intergovernmental
Oceanographic Commission (IOC),and the Indonesian
Meteorological and Geophysical Agency (BMG) conducted joint
training on seismology and tsunami warning on May 18 in
Jakarta to 40 representatives of GOI agencies, non-
government organizations and universities. The training
aimed to provide the necessary skills and tools for using
seismic data in identifying tsunami events and providing
better life-saving information to the public. The training
is part of a regional USD 16.6 million program managed by
USAID to support the IOC and individual countries affected
by the 2004 tsunami. The program shares technical
capability and experience in detecting earthquakes,
tsunamis, and related hazards.

SIPDIS

HEALTH
--------------

Leaded Gasoline Puts Children at Health Risk
--------------


JAKARTA 00008735 004 OF 004



13. Sixty-six percent of school-aged children in Bandung
have a lead content in their blood above 13.13 micrograms
per deciliter, according to a research report released on
March 23 by Bandung Institute of Technology (ITB),the Lead
Center (KPBB),and Hijau Lestari Foundation. Researchers
also found children in Makassar with high lead blood
content, including some with counts of 23.96 grams per
deciliter. The World Health Organization standard is 10
micrograms per deciliter. Researchers tested the lead
content in the blood of school children in Makassar, South
Sulawesi and Bandung, West Java. The researchers concluded
that the high lead content in the children's blood is due to
the ongoing use of leaded fuel in those cities. Currently,
unleaded gasoline is only available in four provinces:
Jakarta and surrounding cities, Cirebon, Bali and Batam.
However, even in these areas, the vast majority of gasoline
consumed contains lead.

Pascoe