DIPLOMATIC ENVIRONMENTAL STRATEGY FOR INDONESIA

UNCLAS JAKARTA 003471 SIPDIS SENSITIVE SIPDIS DEPT FOR G, OES, AND EAP USAID FOR ANE AND EGAT TREASURY FOR TFCA - BERG COMMERCE FOR NOAA NSC FOR CEQ CONNAUGHTON, VAN DYKE ENERGY FOR A/S KARNSER AGRICULTURE FOR FORESTRY SERVICE STATE PASS TDA FOR STEINGASS E.O. 12958: N/A TAGS: SENV KGHG ECON EAID KPAO PREL ID SUBJECT: DIPLOMATIC ENVIRONMENTAL STRATEGY FOR INDONESIA From Ambassador Hume to Director Fore, U/S Dobriansky and CEQ Chairman Connaughton ¶1. (SBU) Summary: The United States and Indonesia have real opportunities within the bilateral relationship to move their respective environmental agendas forward. The Government of Indonesia used the recently concluded UN Climate Change Conference in Bali to highlight its environmental resources and challenges. President Yudhoyono appreciated the contributions to forest and coral reef conservation we announced at the conference. Our continued support for Indonesia's environmental priorities - sustainable forestry, the Coral Triangle Initiative, and clean technology transfer - will help preserve Indonesia's biodiversity and win Indonesian support for our climate change priorities. End summary. Winning Support for U.S. Climate Change Policy -------------- - ¶2. (SBU) Indonesia took advantage of its role as host of the recent United Nations Climate Change Conference (COP 13) on Climate Change to showcase its extraordinary environmental resources and challenges. President Susilo Bambang Yudhoyono, Minister of Marine Affairs Freddy Numberi and Minister of Forestry Malem Sambet Kaban thanked the U.S. publicly for our support of Indonesia's key environmental programs, including $19.6 million for Tropical Forest Conservation Act (TFCA) debt redirection, $4.35 million for the regional Coral Triangle Initiative (CTI),and $2.8 million for bilateral biodiversity and climate change programs, including support of the Indonesian Action Plan for Orangutan Conservation. ¶3. (SBU) We can build on these programs to buttress Indonesia's environmental priorities and to garner Indonesian support for our climate change policy both in the United Nations and through our Major Economies Process. We propose to focus U.S. bilateral efforts on three areas that are most important to Indonesia and us: sustainable forestry, the Coral Triangle Initiative and clean technology transfer. Sustainable Forestry -------------- ¶4. (SBU) Eighty-five percent of Indonesia's emissions come from the forestry sector (including fires that follow deforestation and the draining and burning of peat land). Sustainable forest management is imperative to mitigate climate change. President Yudhoyono's Action Plan for Orangutan Habitat Conservation is designed to manage forest resources and protect orangutans' natural habitat. We already support the action plan through the USAID-funded Orangutan Conservation Services Program and other programs. Other opportunities for greater bilateral involvement exist. For example, Papuan Governor Barnabas Suebu will lift the logging moratorium in his province in January 2008. He aims to introduce forestry management practices that will promote reforestation and conversion of already cleared areas into palm oil plantations. Action Proposals: -- Offer Papua Governor Barnabas Suebu assistance on logging concessions policy as well as forestry monitoring and remote sensing, possibly through the U.S. Forestry Service. A similar program should be offered to Aceh Governor Yusuf Irwandi. -- Encourage investments by U.S. companies such as International Paper and Cargill to demonstrate best practices in sustainable forestry, plantation development, land-use planning and watershed management. -- Target proceeds from debt redirection under TFCA to support forest habitat protection and sustainable community forestry programs. Coral Triangle Initiative -------------- ¶5. (SBU) President Yudhoyono proposed the Coral Triangle Initiative (CTI) and raised it with President Bush at the September APEC summit. The CTI aims to reverse the rapid degradation of coral reef habitats and off-shore fisheries in Indonesia, the Philippines, Malaysia and nearby countries. U.S. funds support the World Wildlife Fund and other non-governmental organizations in Indonesia to carry out CTI activities. We should consider other ways to back this initiative. Action Proposals: -- Invite, in conjunction with Mexican co-chair, Indonesian Minister of Marine Affairs Freddy Numberi to present CTI to the January International Coral Reef Initiative meeting in Washington. -- Develop a regional International Visitors Leadership Program (IVLP) to highlight U.S. expertise in coral and fisheries management. -- Provide expertise from the National Oceanic and Atmospheric Administration on marine, fisheries and coral issues in response to a request from the Ministry of Marine Affairs. -- Target proceeds from debt redirection under TFCA to support coral reef protection programs. Clean Technology Transfer -------------- ¶6. (SBU) The Indonesian government is developing a low-carbon growth strategy to put Indonesia on a more carbon-neutral development path. Clean technology could play an important role. But Indonesia sometimes questions whether new environmentally friendly technologies can be transferred to developing countries at an affordable price. Action Proposals: -- Use Indonesia as a pilot country to demonstrate that technology transfer to developing countries can work. The Department of Energy's Office of Energy Efficiency and Renewable Energy and the National Renewable Energy Laboratory have developed cutting-edge clean technologies, such as the "super boiler." USAID also has experience with the transfer of a range of energy efficiency and renewable energy technologies. -- Organize with the U.S. Trade and Development Agency a reverse trade mission focusing on clean technology. Environmental Public Diplomacy -------------- ¶7. (SBU) We must use media and outreach opportunities to demonstrate continued U.S. commitment to combating climate change and promoting energy security and to highlight our support for Indonesia's efforts. Our Environment, Science, Technology and Health Section is developing a 14-month program of environmental outreach activities that will be launched on Earth Day 2008 and continue through UN Environment Day 2009. Action Proposal: -- Conduct digital video conferences between U.S. officials and Indonesian journalists before important meetings in the Major Economies Process (such as the late January meeting in Hawaii) to explain U.S. policy. HUME