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Cablegate: Indonesia Climate Change Update

VZCZCXRO5427
PP RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #2063/01 3120931
ZNR UUUUU ZZH
P 070931Z NOV 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 0573
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHRL/AMEMBASSY BERLIN 0591
RUEHBY/AMEMBASSY CANBERRA 3256
RUEHLO/AMEMBASSY LONDON 0898
RUEHBS/USEU BRUSSELS
RUCNDT/USMISSION USUN NEW YORK 0983
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 02 JAKARTA 002063

SIPDIS
SENSITIVE

DEPT FOR EAP AND OES
NSC FOR CEQ CONNAUGHTON, VAN DYKE

E.O. 12958: N/A
TAGS: ENRG SENV KGHG PREL ID
SUBJECT: INDONESIA CLIMATE CHANGE UPDATE

REF: A. JAKARTA 2058
B. JAKARTA 2047
C. STATE 116939
D. JAKARTA 1325

1. (SBU) Summary: Minister of Environment Rachmat Witoelar will
lead the Indonesian delegation to the U.N. climate change conference
in Poznan, Poland this December. However, the delegation's
composition is still undefined. Prior to Poznan, Minister of
Industry Fahmi Idris will attend the November 27-28 sectoral meeting
in Warsaw. The delegation is expected to focus on concessional
financing for adaptation and mitigation, technology transfer, and
Reducing Emissions from Deforestation and Degradation (REDD). In
addition, it is likely to press for emissions reductions by rich
countries of 20 percent by 2020 and 50 percent by 2050, from 1990
levels, while acknowledging a role for developing countries as well.
Indonesia has established a Secretariat for its National Climate
Change Commission, headed by Agus Purnomo. The commission will be
adding a science working group to its six existing ones. Germany
has offered Indonesia a 20 million euro debt swap for
forestry-related climate change programs. Indonesia's
Meteorological and Geophysical Agency (BMG) has changed its name to
emphasize climate change. End Summary.

Indonesia's Delegation to COP-14
--------------------------------
2. (U) According to the Secretariat of Indonesia's National Climate
Change Commission (NCCC), the Government of Indonesia (GOI) is still
deciding the composition of its delegation to the 14th Conference of
the Parties (COP-14) of the U.N. Framework Convention on Climate
Change (UNFCCC) in Poznan, Poland this December. However, they
expect a delegation of approximately 60 persons, led by Minister of
Environment Rachmat Witoelar. The Head of the NCCC Secretariat,
Agus Purnomo (see para 7), will also be a member of the delegation.
According to Ministry of Foreign Affairs officials, their
representatives will include the Director and Deputy Director for
Environmental Affairs, Ghafur Akhbar Dharmaputra and Cecep Herawan,
Directorate of Economic Development and Environmental Affairs.

3. (U) The Indonesian delegation's core group will meet
mid-November to decide on objectives, following the "Beijing
High-Level Conference on Climate Change: Technology Development and
Technology Transfer", taking place November 7-8, 2008. In addition,
Minister of Industry Fahmi Idris will attend the November 27-28
"Summit on Sectoral Cooperation" in Warsaw, organized by the Polish
Minister of Economy for ministers of industry and business leaders.


Priorities of the Indonesian Delegation to COP-14
--------------------------------------------- ----
4. (SBU) Recent statements by President Yudhoyono and GOI officials
suggest that the Indonesian delegation will focus on concessional
financing for adaptation and mitigation, technology transfer, and
REDD. In addition, it is likely to continue to press for emissions
reductions by rich countries of 20 percent by 2020 and 50 percent by
2050, from 1990 levels. Agus Purnomo has stated that their intent
is to safeguard the Bali Roadmap and ensure that the global
financial crisis does not change the commitments of developed
countries to reduce the emissions.

5. (SBU) President SBY has acknowledged that "both developed and
developing countries must do more" on climate change (ref A). In a
November 5 meeting with Ambassador Hume, SBY said he thought that
all leaders present at the recent ASEM Summit were committed to the
success of the 2009 Copenhagen Climate Change Conference, and that
statements by Chinese and Indian leaders had been positive.
Although many issues remained to be settled following the Bali
Roadmap of December 2007, SBY expressed his hope that a post-2012
protocol could be reached. Focus needed to remain on mitigation,
adaptation and on a financing structure.

6. (SBU) However, comments by Dr. Emil Salim, head of Indonesia's
COP-13 delegation and an advisor to Indonesian President Yudhoyono
(SBY), indicate lowered expectations for COP-14. At Post's
election-day event (ref B) on November 5, Dr. Salim said he is not
likely to be in this year's delegation, and that he did not expect
progress in Poznan anyway, especially with the U.S. Administration
in transition.

7. (SBU) Masnellyarti Hilman, a Deputy Minister of Environment and

JAKARTA 00002063 002 OF 002


likely delegation member, has emphasized that Indonesia's policy is
to rely primarily on grants for mitigation and adaptation financing,
and stated that the financial crisis does not change this.
Officials at the National Development Planning Agency (BAPPENAS)
have frequently underscored that they will only accept grants or
extremely concessional lending. The Ministry of Finance (MOF) and
BAPPENAS are currently setting up a financing management mechanism
in the form of a Climate Change Trust Fund. According to Purnomo,
the model for this is the Aceh multi-donor trust fund; he says the
NCCC Secretariat is still waiting to hear more about the fund and
its structure.

Secretariat for National Climate Change Commission
--------------------------------------------- -----
8. (SBU) Minister Witoelar has appointed Agus Purnomo, an advisor
to the Minister, to head an NCCC Secretariat, which is still in the
process of moving into its new office space and hiring staff. The
Secretariat will have offices for communication and education,
monitoring and evaluation, research support, international
collaboration and legal issues, as well as a Clean Development
Mechanism (CDM) unit. According to Purnomo, it will help set
priorities, but not replicate the functions of BAPPENAS. Purnomo
expects the NCCC to get more involved in working with the MOF on a
low carbon economy strategy. He also noted recently that he sees no
leadership within the GOI on climate-related infrastructure issues.

9. (U) There are six working groups under the National Climate
Change Council (ref D): Adaptation, Mitigation, Financing,
Technology Transfer, Post-Kyoto 2012, Forestry and Land-Use Change.
These working groups will formulate proposed policies which the
cabinet-level NCCC will then adopt or reject. The only working
group chair appointed so far is Ismid Hadad for Financing. (Note:
Ismid Hadad has been the Executive Director of KEHATI, the
Indonesian Biodiversity Foundation, since 1999. KEHATI is an
independent, non-profit, national grant-making foundation
established in 1994 with USAID funding. End Note.)

10. (U) According to Purnomo and Amanda Katili, another advisor to
Minister Witoelar, and who will direct the NCCC's communication and
education efforts, they are adding a new working group for Science.
Dr. Mezak Ratag, Director for Research and Development,
Meteorological and Geophysical Agency (BMG), will chair this group,
which is to be a "domestic equivalent of the IPCC [Intergovernmental
Panel on Climate Change]", says Katili.

11. (U) BACKGROUND: President Susilo Bambang Yudhoyono (SBY)
established the NCCC by presidential decree on July 4, 2008 (ref D).
President SBY is the nominal Chair of the NCCC, and Minister of
Environment Rachmat Witoelar is the Executive Director. Witoelar
has two deputies: the Coordinating Minister for Social Welfare and
the Coordinating Minister for Economics. The NCCC comprises 17
ministers as well as the Director of the Meteorological,
Climatological and Geophysical Agency (BKMG - see para 13).

Germany Offers 20 Million Euro Climate Change Debt Swap
--------------------------------------------- ---------
12. (SBU) Germany has offered Indonesia a 20 million euro debt swap
for forestry-related climate change programs. This debt-for-nature
swap comes with conditions: the GOI must contribute a matching
amount in local currency as well as involve NGOs in implementing
activities. A German delegation presented this offer in an official
letter to the Ministry of Finance on November 6 in Jakarta. Germany
will commence technical discussions with the GOI if it responds
positively.

Meteorological and Geophysical Agency (BMG) Renamed
--------------------------------------------- ------
13. President SBY renamed the Meteorological and Geophysical Agency
(BMG) as the Meteorological, Climatological, and Geophysical Agency
(BMKG, or Badan Meteorologi, Klimatologi dan Geofisika) by
presidential decree on September 4, 2008. Both Agus Purnomo and
another senior advisor to Minister Witoelar pointed this out as
evidence of how seriously the GOI takes climate change.

HUME

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