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Cablegate: Indonesia Animal Product Update

VZCZCXYZ0006
PP RUEHWEB

DE RUEHJA #1658/01 1651053
ZNR UUUUU ZZH
P 141053Z JUN 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 5103
RUEHRC/DEPT OF AGRICULTURE WASHDC
INFO RUEHML/AMEMBASSY MANILA 3083
RUEHGV/USMISSION GENEVA 7580
RUEHKL/AMEMBASSY KUALA LUMPUR 2344
RUEHHI/AMEMBASSY HANOI 0536
RUEHBK/AMEMBASSY BANGKOK 8000
RUEHBY/AMEMBASSY CANBERRA 0828
RUEHHK/AMCONSUL HONG KONG 2354
RUEHMU/AMEMBASSY MANAGUA 0033
RUEHGP/AMEMBASSY SINGAPORE 6048

UNCLAS JAKARTA 001658

SIPDIS

SIPDIS

USDA DU/S LAMBERT, DU/S TERPSTRA
USDA/FAS/SRITCHIE, DSMITH
FAS/OA YOST, MILLER
FAS/OCRA/WOOLSEY, HIGGISTON, RADLER
FAS/OSTA/SISSION, SSHNITZLER, CHAMILTON
FAS/OFSO/DEVER
DEPT PASS TO USDA/APHIS
DEPT PASS USTR/RCROWDER, OCONNER, KATZ, BURST, ENRIGHT
GENEVA FOR MIN COUNSELOR MILLER
MANILA FOR APHIS/THOMAS
KUALA LUMPUR FOR AG COUNSELOR GRESSEL
HANOI FOR AG ATTACHE WADE
BANGKOK FOR AG COUNSELOR MEYER, APHIS/CARDENAS
CANBERRA FOR AG COUNSELOR WAINIO, APHIS
MANAGUA FOR AG SPECIALIST
SINGAPORE FOR AG SPECIALIST
HONGKONG FOR AG TRADE OFFICER

E.O. 12958: N/A
TAGS: ETRD EAGR
SUBJECT: Indonesia Animal Product Update

Reftel (JAKARTA 001270)

1. Summary: Post met with Turni Rusli Syamsudin, the Director of
Public Veterinary Health and members of his staff twice during the
week of June 4, 2007 to discuss poultry, ruminant meat and bone
meal, and beef. The Directorate General of Livestock Services (DGLS)
is characterizing the poultry ban as a warning and plans to resume
issuing import permits in 3 months. DGLS has completed its
evaluation of its ruminant meat and bone meal (MBM) control system
and determined it is insufficient and will continue restricting
imports of U.S. MBM to one producer for an undetermined period. DGLS
is inpatient to receive an invitation from USDA to visit the United
States and inspect BSE-related controls. In a follow-up meeting,
Indonesian beef importers explained their desire to resume trade in
time to have beef in retail stores for the holiday season beginning
in the middle of September. End Summary.

Poultry
-------

2. Based on Article 11 in Decree 27, DGLS is no longer issuing
import permits for U.S. turkey, day old chicks, whole poultry
carcass, and duck originating from any U.S. state as well as poultry
meal originating from the state of West Virginia. Article 11 states
that Indonesia will not import from a country with notifiable avian
influenza.

3. DGLS is labeling this as a "warning" rather than a ban. It hopes
that this will make it easier to resume trade 3 months after the
final report by the United States to the OIE. If it were a ban, then
the ban would need to be lifted by Ministerial decree.

4. An APHIS letter to the Director of DGLS was sent Wednesday, June
13 requesting that the trade restrictions be limited to those
products recommended by the OIE Animal Health Terrestrial Code.

Ruminant Meat and Bone Meal
---------------------------

5. DGLS says that imports of U.S. MBM will continue to be limited to
one producer. DGLS has completed its review of the control system to
ensure that ruminant materials are not fed to ruminants. The report
has determined that the control system is not effective. DGLS
mentioned the findings of ruminant material in poultry and feather
meal by Quarantine in Surabaya as an example of the lack of
controls. (See Reftel) DGLS will continue the limited trade to give
time for the control system to be improved. When asked, DGLS had no
suggestions on areas of cooperation with the USDA to improve its
control system.

Beef
-----

6. FAS/Jakarta met with DGLS on Tuesday followed by a meeting that
also included the U.S. Meat Export Federation (USMEF) on Thursday
during the week of June 4. During both meetings, DGLS expressed
frustration because they did not understand why USDA had not sent an
invitation for them to visit the United States. They would like to
discuss BSE safeguards with USDA officials and to see the system,
including laboratories.

7. USMEF explained that this was not possible if DGLS placed
restrictions beyond U.S. requirements. They were disappointed to
hear that placing restrictions requiring a beef export verification
program and negotiated FSIS certificate would increase the time it
would take before trade could resume and that these steps could not
be taken until after GOI decided what products it would accept.

8. Indonesia is focused on allowing imports of boneless beef, heart,
liver, tongue, and oxtail. After the discussion with USMEF, DGLS is
considering opening to all beef products. DGLS committed to
addressing the subject with the Director of DGLS and the Minister
after receiving the invitation. DGLS requested information on the
amount of U.S. beef consumption, production, and export to support
the discussion. FAS/Jakarta has provided the information.

9. Indonesia plans to inspect and approve every plant for halal, but
not certify. A representative from the halal certifying body in the
United States will likely need to accompany DGLS on the tours.

10. DGLS will require that each plant wanting to export to Indonesia
complete an application that will be reviewed before the trip. They
will use importer preference if the number of plants exceeds the
number they can visit in this trip. Then DGLS was expecting to send
the list of approved plants to USDA.

11. Comment: The first sign of possible momentum came during the
meeting with USMEF. DGLS is concerned about resuming imports in time
for the holiday season. They were expecting that trade could resume
after they returned from their trip, using the previous certificate.
DGLS expressed that they do not understand the delay on USDA's
behalf. They assumed that because they had not received a response
to their April 4 letter stating their plans, USDA had no concerns.
In their view, USDA is expressing concerns only now that GOI is
ready to visit, resulting in their frustration.

12. Indonesian beef importers also expressed frustration because
trade has not resumed in a meeting later that day with USMEF. It is
clear that the GOI will receive pressure from importers to resume
trade in all products if that will result in U.S. beef arriving in
time for the holiday season. If not, importers are considering
pressuring DGLS to resume trade on a plant-by-plant basis rather
than working with USDA because they also perceive USDA as
unresponsive. What is unclear is if DGLS would permit such an
arrangement because they emphasize formal government-to-government
meetings and the need for a formal invitation from the government.

HEFFERN

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