Major Economies Forum and Indonesia

UNCLAS JAKARTA 000739 SENSITIVE SIPDIS DEPT FOR EAP/MTS AND OES PASS TO TODD STERN AND JONATHAN PERSHING E.O. 12958: N/A TAGS: SENV KGHG EAID PREL ID SUBJECT: Major Economies Forum and Indonesia ¶1. (SBU) Summary: The Indonesians welcome U.S. reengagement and leadership on the climate change negotiations. They are interested in exploring pragmatic and tangible measures the U.S. and Indonesia canjointly undertake to advance an ambitious outcome o the negotiations. The more technically savvy eaders on their inter-agency team are open to a ore forward leaning posture on contentious issuesraised by the G77. Indonesia's participation inthe ongoing Major Economies Forum meeting is an oportunity to signal support for the pragmatists ad to initiate a serious discussion about the rol they might play, especially in the areas of adapation and avoided deforestation. End Summary. he Preliminaries: Signs of Hope -------------- ¶2. (SBU) On April 24, USAID Misson Director met Agus Purnomo, Head of Indonesia' National Climate Change Commission (NCCC) Secretarat to discuss the Major Economies Forum (MEF) meting in Washington, D.C. Purnomo was heavily inolved in preparing the Inddonesian team for the meting and is in constant communication with Ministr Rachmat Witoelar, their head of delegation. Spcial Envoy Stern met Purnomo during his visit toJakarta, and Deputy Envoy Pershing met him in Bon last month. ¶3. (SBU) Purnomo expressed apprecation for and relief at the reengagement of the nited States in international climate change negoiations, while recognizing the complex domestic an international dimensions of the process. Basedon his discussions with Deputy Envoy Pershing, Purnomo sees th`t h( U.S. ppproach is still evolving, but believes that pror"ess will be impossible without U.S. leadership. The threshold test for our leadership will be ameeting of minds between the United States and Chin. He sees that as the key to unlocking the problem set posed by the Major Economies. ¶4. (SBU) Purnomo was somewhat dismissive of the "background" noise created by the posturing of the G77 countries and others, which he characterized as pandering to domestic stakeholders. He was equally cautious in his assessment of the contribution of NGOs to the process, depicting many of them as underwhelming in their understanding of the technical issues. What Can Indonesia Do? -------------- ¶5. (SBU) Purnomo did not expect the upcoming presidential elections or its outcome (he projects President Yudhoyono's victory) to alter the Indonesian approach to the climate change negotiations. He talked frankly about tensions in Indonesia's inter-agency discussions. Indonesia's diplomacy is often process oriented and timid, Purnomo said. He contrasted with what he saw as effective approaches by the Australians, South Africans and some of the Nordic countries. Purnomo regretted that technical capacity on this issue is severely limited and the new NCCC is still being organized and is under resourced. ¶6. (SBU) Purnomo would like Indonesia to play a more forward leaning role in the process. Despite limitations, Purnomo believes that he and the NCCC have made considerable progress in improving understanding and influencing the GOI to be more proactive. Purnomo has some ideas, elements of which he raised at his meeting with Special Envoy Stern and later discussed with Pershing -- mostly, a list of research oriented initiatives (some items might be replayed during this week's MEF meeting). Purnomo noted that the Indonesian delegation might raise a request for assistance of 50 million dollars for geothermal development -- refe cting the GOI's keen interest in renewable eneryy and clean technology. ¶7. (SBU) Policy and political economy issues in the energy sector in Indoe sia are obstacles to developing renewable energy. Purnomo acknowledged those difficulties and is p en to leveraging discussions with us on these knnds of topics as a means for breaking loose some of the policy constraints. However, he was not certain that the GOI side has enough technical depth right now to do this without assistance. What Can We do? -------------- ¶8. (SBU) Purnomo is looking for some pragmatic and tangible means by which we can partner to positively influence both reductions in emissions and act as a chip that could be used successfully in the negotiations. USAID is currently working with the NCCC to explore providing some short term technical assistance to refine his agenda. EPA and Millennium Challenge Corporation staff have recently been in Jakarta and had some promising discussions with the GOI. Adaptation and avoided deforestation (REDD) are other possible areas which we might want to talk to the Indonesians about more seriously. Washington thoughts about how these initiatives are being used with other partners would be welcome. ¶9. (SBU) Comment: We encourage Washington to signal USG support for Indonesia's engagement as a serious partner in climate change negotiations, openness to seeking assistance to support that engagement, as well as offering to send a high level official from the Department to build on the dialogue and map out an agenda for cooperation, specifically on adaptation and REDD. End Comment. HUME