INDONESIA: EXPANSION OF APEC FOOD DEFENSE PILOT

UNCLAS JAKARTA 001499 SENSITIVE SIPDIS DEPT FOR EAP/MTS, EAP/EP, OES/IHB E.O. 12958: N/A TAGS: PTER TBIO EAGR APECO ID SUBJECT: INDONESIA: EXPANSION OF APEC FOOD DEFENSE PILOT PROJECTS REF: SECSTATE 83232 ¶1. (SBU) Summary: Embassy Jakarta does not consider Indonesia a good candidate for the expansion of the APEC Food Defense pilot project. Food defense is not a government of Indonesia (GOI) priority. The USG and GOI have very good counter-terrorism cooperation that is unlikely to be appreciably affected by expansion of the APEC Food Defense pilot project to Indonesia. Embassy also believes a program of this kind may be politically sensitive now, given difficult USG-GOI negotiations on two high-profile issues involving cooperative activities. End summary. GOI CT EFFORTS FOCUSED ON HALTING TERRORIST OPS, LIMITED ENGAGEMENT ON OTHER USG PRIORITIES, INCLUDING CTF -------------- ¶2. (SBU) The GOI has successfully focused its CT efforts and resources on disrupting terrorist operations in Indonesia. Apprehending terrorists and countering efforts to radicalize parts of society remain central GOI CT priorities. USG-GOI cooperation on these CT efforts has been very good and highly productive. There remain challenges, however, in encouraging the GOI to expand its efforts to address other USG priorities, including countering terrorism finance and fully implementing UNSC designations, activities on which the GOI has not yet placed a high priority. POLITICAL SENSITIVITIES OVER HIGH-PROFILE ISSUES -------------- --- ¶3. (SBU) Two high-profile issues involving health and scientific cooperation have resulted in acute political sensitivities in some quarters of the GOI. First, the USG has been engaged in difficult negotiations with the GOI relating to the continuation of operations of the Naval Medical Research facility (NAMRU-2) in Jakarta. Secondly, the USG continues extensive negotiations with the GOI to restore critical sample sharing relating to Indonesia's serious avian influenza outbreak. A key GOI interlocutor on both these issues, the Health Minister, recently sought to limit scientific cooperation with numerous international partners. Embassy concludes that some GOI ministries, notably the Ministry of Health, would not be receptive to a Food Defense pilot project in Indonesia at this time. Furthermore, both the NAMRU and AI sample sharing negotiations require significant Embassy resources, limiting resources available to undertake other activities. GOI FOCUS ON FOOD SECURITY AND FOOD SAFETY RATHER THAN FOOD DEFENSE -------------- 4.(SBU) Indonesia, like many developing nations, has been hit hard by recent substantial hikes in food prices. With millions of citizens at or near the poverty line and spending over half their income on food, food security is a high GOI priority. Growing hunger and malnutrition have prompted the GOI to prioritize efforts to increase domestic food production and to distribute food aid and targeted monetary assistance to poor Indonesians to help them cope with higher food prices. The GOI also continues to struggle with food safety issues. While there has been some interest in food defense expressed by a few GOI interlocutors, there are few officials focused on the issue. When Embassy Jakarta has sent GOI officials to workshops on the subject, participation has been limited to mid-level and lower-level officials. SPS DIFFICULTIES, LIMITED COOPERATION BETWEEN PRIVATE SECTOR AND SOME GOI MINISTRIES -------------- ¶5. (SBU) Other factors which do not support Indonesia's selection as a site for pilot project expansion at this time include the GOI's tendency to use SPS issues as opportunities to restrict imports. The Ministry of Agriculture and Badan POM (FDA-equivalent) do not have a good record of accomplishment in working with the private sector. Frequently GOI regulations place additional burdens on businesses and traders that needlessly drive up the cost of agricultural goods and food. MARKET SIZE -------------- ¶6. (SBU) The U.S. is an important export destination for Indonesian food and agricultural goods. U.S. imports of agricultural, forestry and fishery products from Indonesia totaled $3.4 billion in 2007. U.S. exports to Indonesia totaled $1.6 billion, making it the tenth-largest export market for these goods. HUME