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