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Cablegate: Indonesia Esth Highlights: May - July 2007

VZCZCXRO8764
RR RUEHCHI RUEHDT RUEHHM
DE RUEHJA #2317/01 2360539
ZNR UUUUU ZZH
R 240539Z AUG 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 5901
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHBY/AMEMBASSY CANBERRA 1035
RUEHBJ/AMEMBASSY BEIJING 4229
RUEHKO/AMEMBASSY TOKYO 0687
RUEHUL/AMEMBASSY SEOUL 4137
RUEHTC/AMEMBASSY THE HAGUE 3339

UNCLAS SECTION 01 OF 02 JAKARTA 002317

SIPDIS

SIPDIS

DEPT FOR EAP/MTS AND OES/ETC

E.O. 12958: N/A
TAGS: SENV TPHY TBIO TRGY ENRG ID
SUBJECT: INDONESIA ESTH HIGHLIGHTS: MAY - JULY 2007

1. Summary: The Ministry of Forestry (MOF) signed a letter of intent
with the Zoological Parks Authority of the Government of Western
Australia on May 21 to cooperate on wildlife conservation. On May
21-24, Indonesia hosted the second meeting of the ASEAN Wildlife
Enforcement Network (WEN) program in Bogor. The Chief of the
Indonesian Palm Oil Commission (KMSI) announced on May 2 that
Indonesia would develop 1.5 million hectares of oil palm plantations
over the next three years to increase palm oil production to 18
million tons. The Ministry of National Education's Director for
Vocational Education announced on May 17 that the Government of
Indonesia (GOI) would give scholarships to 7,000 Indonesian students
to study at vocational schools in the U.S. On June 19, The World
Business Council for Sustainable Development (WBCSD) granted
membership to the Asia Pacific Resources International Holdings
Limited (APRIL)/Riau Pulp. At a June CITES meeting, Indonesia
rejected the U.S. proposal to include Banggai Cardinal Fish in the
Convention on International Trade in Endangered Species of Wild
Fauna and Flora (CITES) Appendix II, the category of trade that
requires CITES monitoring. An Indonesian delegation visited Bolivia
on June 4-9 to study that country's policies to combat illegal
logging and implement sustainable forest management. On July 16,
the Head of the Central Kalimantan Agricultural Department announced
a ban on farmers' use of burning to clear land. End Summary

Indonesia and Australia Committed to Conservation
--------------------------------------------- -----
2. On May 21, the MOF signed a letter of intent with the Zoological
Parks Authority of the Government of Western Australia to cooperate
on wildlife conservation in the Bukit Tiga Puluh National Park in
Sumatra. The activities under the letter include conservation
initiatives for the Sumatran orangutan, elephants, and tigers, among
other species. The program will cover such activities as the
introduction of orangutans to the wild, wildlife surveys, improving
the study and research of wildlife populations, and minimizing human
conflicts with species such as elephants and tigers. The program
will also build conservation facilities in other national park areas
and improve capacity building in planning, management, research,
animal health, education and public awareness, local community
empowerment and eco-promotion.

Indonesia Hosts ASEAN WEN Meeting
----------------------------------
3. On May 21-24, Indonesia hosted the second meeting of the ASEAN
WEN program in Bogor. Around 100 participants from the 10 ASEAN
member countries attended the meeting, as well as observers from
Japan, China, Australia, the U.S., Nepal, the United Nations Office
on Drugs and Crime (UNODC), the National Anti-Environment Crime Task
Force (NAECTAF), the U.S. Agency for International Development
(USAID), WildAid, TRAFFIC, Interpol, and the World Customs
Organization (WCO) Regional Intelligence Liaison Office (RILO).
ASEAN WEN is a regional program that establishes an inter-agency
network of police, customs, legal, and forestry resources. ASEAN
WEN aims to combat the illegal trade of flora and fauna by
developing and enhancing regional coordination, capacity building,
information exchange, and law enforcement. In the meeting,
Indonesia asked for support to combat illegal wildlife trade and
smuggling.

Indonesia Plans New Oil Palm Plantations
-----------------------------------------
4. Chief of KMSI, Rosediana Suharto, announced on May 2 that
Indonesia would develop 1.5 million hectares of oil palm plantations
by 2010 to increase palm oil production to 18 million tons over the
next three years. The plans include 1.375 million hectares of new
plantations and 125,000 hectares of replanted plantations. Suharto,
former senior adviser to the Minister of Trade, added that the
government and private companies would develop the new plantations
outside of Java. She predicted that with the program, Indonesia
could increase palm oil production by around 200,000 tons, or six
percent, per year. The predicted production levels of crude palm
oil are as follows:

--------------------------------------------- -----
Crude Oil Production (CPO)
--------------------------------------------- -----
2010 18 millions tons
2020 30 millions tons
2030 50 millions tons
--------------------------------------------- -----
Source: Indonesian Chamber of Commerce and Industry

Suharto dismissed reports of Chinese and Indian investments
contributing to planned oil palm plantations along the Malaysian
border as exaggerated rumors.


JAKARTA 00002317 002 OF 002


GOI Will Send 7,000 Vocational Students to the U.S.
--------------------------------------------- ------
5. On May 17, the Ministry of National Education's Director for
Vocational Education, Joko Sutrisno, announced that the government
would give scholarships to study in the U.S. to 7,000 Indonesian
vocational students who passed English language and international
standard vocational school exams. Vocational students from across
the country are eligible to compete for the scholarships, with the
government focusing on students from high tourist and investment
destinations, such as Jakarta, Denpasar, Medan, Makassar,
Yogyakarta, and Surabaya. The government has earmarked Rp. 1.6
trillion ($176.6 million) for the program, out of the Rp. 43.4
trillion ($4.7 billion) for vocational school development in 2007.
The program, beginning in 2007 with a group of 600 students, is a
component of the government's efforts to reduce unemployment.
Sutrisno added that the ratio of vocational school graduates to high
school graduates would grow to 70% versus 30% in the next three
years.

APRIL/Riau Pulp Became Member of WBCSD
--------------------------------------
6. On June 19, The WBCSD granted membership to APRIL/Riau Pulp.
Executive Director of WBCSD James Griffiths noted that the Council
based their decision on the Indonesian company's commitment to
transforming forest industry management in Indonesia. According to
APRIL/Riau Pulp President A.J. Devanesan, the company supports
efforts to combat illegal logging and ensures that the raw material
used in their plants come from sustainable and responsible sources.
APRIL/Riau Pulp has operations in China and Indonesia, where the
company is the number one producer of fiber, pulp and paper.

Indonesia Refuses U.S. Proposal on Cardinal Fish in CITES
--------------------------------------------- -------
7. At a June CITES meeting, Indonesia rejected the U.S. proposal to
include Banggai Cardinal Fish (Banggai/pterapogus kauderni), or BCF,
in CITES Appendix II, the category of trade that requires CITES
monitoring. Australia, Argentina, Japan, China, Iran, Qatar,
Thailand and the Food and Agricultural Organization (FAO) supported
the Indonesian position. Cardinal fish are endemic to Banggai
Island (Central Sulawesi) but can thrive in other parts of the
archipelago. According to the Ministry of Marine Affairs and
Fisheries' (MMAF) Director of Conservation and National Maritime
Parks, Yaya Mulyana, the MMAF has developed BCF ex-situ in Bali and
plans to designate Banggai Island as a Local Marine Conservation
Area covering 275,836 hectares.

Indonesia and Bolivia Share Forest Management Experiences
--------------------------------------------- --------
8. On June 4-9, an Indonesian delegation visited Bolivia to study
the country's policies to combat illegal logging and implement
sustainable forest management. The Indonesian delegation consisted
of eight representatives from the MOF, the Forest Association, the
Forest and Poverty Commission Forest, the Environment Commission,
The Nature Conservancy (TNC), and academia. The delegation met with
key Bolivian government stakeholders, local NGOs, USAID Bolivia, and
representatives from the private sector. The Nature Conservancy
facilitated the visit.

Central Kalimantan Combats Use of Fire to Clear Land
--------------------------------------------- -------
9. On July 16, the Head of the Central Kalimantan Agricultural
Department announced a ban on farmers' use of burning to clear land.
He noted that his office also planned to offer farmers alternative
land clearing technologies in an effort to stop the burning process.
While local farmers supported the ban in principle, they noted that
using herbicide to clear land, the most readily available
alternative to burning, was prohibitively expensive, at a cost of
Rp. 50,000 ($5.56) per liter. The Head of the Sub-Office for Palm
Oil in Riau noted that the fires were predominantly occurring in
idle land or ex-concession areas.

Hume

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