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Cablegate: Indonesia: Implementing Landmark Waste Management Law A

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RR RUEHAST RUEHCHI RUEHCN RUEHDT RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD
RUEHTM
DE RUEHJA #1421/01 2060320
ZNR UUUUU ZZH
R 240320Z JUL 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 9624
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHBK/AMEMBASSY BANGKOK 8491
RUEHKO/AMEMBASSY TOKYO 2272
RUEHBJ/AMEMBASSY BEIJING 5235
RUEHBY/AMEMBASSY CANBERRA 2817
RUEHUL/AMEMBASSY SEOUL 4768
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RHEHNSC/NSC WASHDC
RUEAIIA/CIA WASHDC

UNCLAS SECTION 01 OF 02 JAKARTA 001421

SIPDIS

DEPT FOR OES AND EAP
USTR FOR MLINSCOTT, DBROOKS
USAID FOR ANE, EGAT
BANGKOK FOR RDM/A AND REO
NSC FOR CEQ CONNAUGHTON, VAN DYKE

E.O. 12958: N/A
TAGS: EAID ENRG ETRD KGHG SENV PGOV ID
SUBJECT: INDONESIA: IMPLEMENTING LANDMARK WASTE MANAGEMENT LAW A
CHALLENGE

1. (U) Summary. Prior to hosting the Ninth Conference of Parties
(COP9) of the Basel Convention on Hazardous Wastes in June 2008, the
Government of Indonesia (GOI) passed a landmark Waste Management Law
(WML). Previously, a plethora of disparate local government
regulations (PERDA) regulated waste management. The WML reflects
Indonesia's commitment to climate change mitigation (by reducing
methane gas production from waste) and helps to fulfill
constitutional obligations to safeguard citizens' health and
welfare. Implementation will be a challenge, however, as a minor
controversy during COP9 illustrates. End Summary.

Indonesia - Controversial Host of COP9
--------------------------------------
2. (U) Even as Indonesia hosted the Ninth Conference of Parties
(COP9) of the Basel Convention on the Control of Transboundary
Movements of Hazardous Wastes and their Disposal in Bali from June
23-27, it generated a minor controversy. At COP9, the Indonesian
delegation, led by the Ministry of Environment (MOE), was
championing a total ban on the import and export of hazardous
wastes. However, it emerged that the Japan-Indonesia Economic
Partnership Agreement (EPA), signed in August 2007 and which entered
into effect July 1, 2008, allows the importation of a number of
hazardous wastes categorized as goods -- including sewage sludge,
medical waste, waste from chemical or allied industries, incinerator
ash, and uranium enriched in U235. Minister of Environment Rachmat
Witoelar admitted that the GOI would have to examine this apparent
contradiction. The Indonesian Head of Delegation, Agus Purnomo,
said that he was shocked by this apparent contradiction, and claimed
that the Ministries of Industry and Trade did not involve the MOE in
negotiating the EPA.

Background
----------
3. (U) The volume of waste is growing exponentially due to the
rapid growth of Indonesia's population and industrial activity.
Municipal solid waste (MSW) in large metropolitan areas is growing
annually by an average of 20.9 percent, according to MOE data from
2006. Previous waste management laws simply dealt with collecting,
transporting and disposing wastes, and were inadequate for the
increasing volume and types of waste produced. These were causing
social, environmental degradation, and health problems, according to
Hendarso Hadiparmono, Chairperson of the Special Committee of the
Indonesian Parliament (DPR) for this legislation, and the DPR
concluded that Indonesia needed an umbrella law to regulate all
aspects of waste management. Mountains of waste in open dumps
produce methane gas (CH4), contributing to global warming. Lack of
community participation and limited budgets also make waste
management difficult.

Indonesia Enacts Landmark Waste Management Law
--------------------------------------------- -
4. (U) On April 9, 2008, the Indonesian Parliament approved Law No.
18 on Waste Management, and President Yudhoyono signed the WML into
effect on May 7. Minister of Environment Rachmat Witoelar called
the law a landmark step toward proper waste management in Indonesia
and said it reflects Indonesia's commitment to climate change
mitigation (by reducing methane gas production from waste).
According to Deputy Minister of Environment for Environmental
Management Ilyas Asaad, the WML is one of his ministry's major
achievements since the GOI passed the Environmental Management Act
(EMA) in 1997. The GOI and local governments have three years in
which to enact the implementing regulations. Deputy Minister Ilyas
says that these will include 11 national government regulations
(PP), two ministerial regulations, and 11 local government
regulations (PERDA), on matters such as waste management oversight,
implementation of administrative sanctions, and compensation.

5. (U) The GOI hopes that the WML will address Indonesia's waste
problem, by establishing clear waste categories and clear roles and
responsibilities for the central and local governments, the private
sector, and local communities. The GOI also intends the legislation
to create incentives and disincentives for the private sector to
increase the use of recycled materials in their products. The WML
also includes:


JAKARTA 00001421 002 OF 002


-- Provisions for cooperation and partnership, opening up
opportunities for regency/city -business partnership in waste
processing activities, as well as community participation in waste
management;

-- Prohibitions and legal sanctions: The law bans importing
hazardous and toxic waste. The WML also stipulates legal sanctions
for violators of the law, including prison terms and administrative
fines ranging from 3- 15 years and 100 million to 5 billion rupiah
(approximately USD 10,800-541,000), respectively; and

-- Obligations: Local governments have one year to develop plans to
close open dumping areas, and implement those plans within five
years after the law comes into force. Local governments are
required to evaluate dumping areas every 6 months during a 20-year
operation period, and establish emergency response systems for
accidents involving dumps.

A New Paradigm of Waste Management
----------------------------------
6. (U) The WML is a "paradigm shift" for Indonesia, according to
Hendarso, in that it considers waste an economic resource, and
introduces the 3R concept: reduce, reuse, and recycle. Also
reflected in Chapter IV of the law is the concept of extended
producer responsibility (EPR) -- based on the "polluter pays"
principle, a policy that entails making manufacturers responsible
for the entire lifecycle of the products and packaging they produce.
The central and local governments have to encourage all parties to
introduce integrated waste management. The first pilot
implementation projects will be in three cities: Jombang (East
Java), Singaparna (West Java) and Magelang (Central Java). Deputy
Minister of State Minister of Environment for Pollution Control, M.
Gempur Adnan says that the government will push 26 big and metro
cities to close open dumping areas within five years.

Support for Implementation Welcome
----------------------------------
7. (U) Atik, Assistant to the Deputy Minister of Environment for
Environmental Management, admits that it will be challenging to
complete all the implementing regulations within one year. She
notes that the Government welcomes any support (including from donor
countries) for the process of drafting implementing regulations.
Implementation of existing laws has been weak, and without visible
enforcement, the new WML will have little practical effect.

HUME

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