INDONESIA NOT READY TO SIGN IRENA AGREEMENT AT THE EGYPT

UNCLAS JAKARTA 001012


DEPT FOR EEB/ESC MONOSSON, OES/EGC THOMPSON
DEPT FOR IO/EDA WEBBER, EAP/MTS BENAVIDEZ
ENERGY FOR PI-32 CUTLER AND EERE WALL
COMMERCE FOR 4430/NADJMI AND 6930/HUEPER

E.O. 12958: N/A
TAGS: ECON ENRG KGHG SENV ID
SUBJECT: INDONESIA NOT READY TO SIGN IRENA AGREEMENT AT THE EGYPT
CONFERENCE

REF: STATE 59969


1. Dadan Kusdiana, Head of Energy for Rural or Suburban Areas at the
Directorate General of Electricity, in the Ministry of Energy and
Mineral Resources, told Embassy on June 15 that Indonesia has not
yet made a decision regarding joining the International Renewable
Energy Agency (IRENA) and was unlikely to do so by the June 28th
preparatory conference in Egypt. Kusdiana was pleased that the
United States is seriously considering joining IRENA, and he sees
potential benefit in the organization, but cautioned that Indonesia
is not ready to make a commitment.


2. Key Indonesian stakeholders are conducting internal discussions
on IRENA, and Kusdiana highlighted that there are internal
supporters of IRENA membership. Ultimately, the Minister of Energy
and Mineral Resources will make the decision whether to join IRENA,
but Kusdiana's chain of command will not be ready to present this
option to the Minister in the near future.


3. The Indonesian government seeks assurance before it joins that
IRENA will benefit Indonesia, and not merely serve as a market for
developed countries' technologies, according to Kusdiana, although
he did identify specific Indonesian objectives. He was receptive to
the idea of capacity building in the renewable energy sector.


4. The government of the UAE has formally advocated with the
Indonesian government regarding its proposal to host the IRENA
headquarters. Kusdiana cautioned that the Indonesians will not
support a headquarters proposal before they have made a formal
decision on membership.

NORTH