NUCLEAR EXPORT CONTROLS -- JOINT USG-INDONESIA

C O N F I D E N T I A L JAKARTA 003090 SIPDIS SIPDIS DEPT FOR PM, PM/EXBS, ISN/CPI, EAP, EAP/MTS, EAP/ANP NCS FOR E.PHU E.O. 12958: DECL: 11/06/2017 TAGS: PREL ETTC ENRG KNNP ID SUBJECT: NUCLEAR EXPORT CONTROLS -- JOINT USG-INDONESIA WORKSHOP KICKS OFF Classified By: Pol/C Joseph Legend Novak, reasons 1.4 (b,d). ¶1. (SBU) SUMMARY: In November 6 opening remarks to a USG-sponsored training workshop on nuclear export controls, Pol/C underscored the regional and global importance of effective nonproliferation safeguards. The Deputy Chair of the Indonesian Nuclear Regulatory Agency (BAPATEN) reviewed Indonesia's progress in ratifying IAEA and international protocols. The three-day event--which is part of the USG's Export Control and Border Security (EXBS) assistance program--highlights Indonesia's commitment to working with the U.S. in this key area. END SUMMARY. ¶2. (SBU) AN ONGOING PROGRAM: Pol/C kicked off the November 6-8 workshop, underscoring the importance of continued USG-Indonesia cooperation in the nuclear export controls area. Pol/C noted that the U.S. sought to work with the GOI to enhance its strategic trade systems and enforcement mechanisms. Many governments had discovered that robust export controls actually enhanced trade by increasing partners' confidence that their exports and shipments reached their intended destination and did not end up in the hands of proliferators. ¶3. (C) The workshop--which is focused on commodity identification training for Indonesia's interagency nuclear regulatory community--builds upon previous EXBS events over the past year, including Washington consultations for senior Indonesian policy officials and seaport interdiction training in Jakarta. Follow-on activities are planned on WMD commodity identification, proliferation awareness, legal and legislative regimes and maritime security. Indonesia's relevance to EXBS lies in its location along important sea lanes and its growing domestic nuclear sector. The U.S. interagency team of instructors includes an Australian government representative as part of a coordinated assistance effort. EXBS Regional Coordinator attended from Kuala Lumpur. Approximately 50 Indonesians are participating. ¶4. (SBU) FOCUS ON COMPLIANCE: BAPATEN Deputy Chair Suhartono Zahir, who is the official responsible for licensing and inspection of Indonesia's nuclear facilities, highlighted Indonesia's compliance with the Nuclear Non-Proliferation Treaty (NPT) and the Safeguards Agreement, Comprehensive Safeguards Agreement (CSA) and Additional Protocol (AP) of the International Atomic Energy Agency (IAEA). Indonesia had been the third country, after Australia and Norway, he said, to implement IAEA Integrated Safeguards, and had begun to implement the Additional Protocol in 2006. In line with Indonesia's plans to develop nuclear power responsibly, Suhartono noted, BAPATEN had been cooperating since 2004 with the Department of Energy (DOE) on nuclear materials security and safeguards technologies. One participant from BATAN, Indonesia's Nuclear Energy Agency, had just returned from an exchange at Sandia National Laboratories. ¶5. (C) APPRECIATION FOR USG HELP: Officials from BAPATEN and BATAN emphasized their agencies' appreciation for U.S. assistance and expressed a desire to cooperate further in nuclear regulation and export control cooperation. While proud of Indonesia's nonproliferation commitments and timely ratification of relevant protocols, they readily admitted that much needed to be done, from establishing a statutory nonproliferation regime and effective interagency process to developing safeguards and physical controls at facilities and ports. Our sense is that Indonesia's delay in getting to this point is the result of the country's inadequate regulatory and export control structure and its reluctance to undertake commitments it cannot fulfill due to lack of capacity. As the necessary statutory framework comes into place, we expect, transparency and enforcement capability will grow. HUME