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Cablegate: Pre-Cop Bogor Scenesetter for U/S Dobriansky: Indonesian

VZCZCXYZ0021
OO RUEHWEB

DE RUEHJA #2945/01 2921009
ZNR UUUUU ZZH
O 191009Z OCT 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6739
RHEHNSC/NSC WASHDC PRIORITY
RUEHBS/USEU BRUSSELS
RUCNDT/USMISSION USUN NEW YORK 0714

UNCLAS JAKARTA 002945

SIPDIS

SENSITIVE
SIPDIS

FROM AMBASSADOR HUME TO U/S PAULA DOBRIANSKY

DEPT FOR G, OES, AND EAP
TREASURY FOR TFCA - BERG
NSC FOR CEQ CONNAUGHTON, VAN DYKE

E.O. 12958: N/A
TAGS: SENV KGHG ECON PREL ID
SUBJECT: PRE-COP BOGOR SCENESETTER FOR U/S DOBRIANSKY: INDONESIAN
PERSPECTIVES

REF: JAKARTA 2683

1. (SBU) Summary and Introduction: Embassy Jakarta welcomes you to
Indonesia to participate in the Informal Ministerial Meeting on
Climate Change in Bogor, October 23-25. Indonesia wants the pre-COP
ministerial meeting to increase prospects for the success of the
13th UNFCCC Conference of the Parties (COP 13) in Bali in December.
As with the Major Economies Meeting (MEM), GOI officials view the
Bogor meeting as a "confidence building measure" on the road to COP
13. They will judge the meeting a success if there is any movement
towards consensus or agreement on specific climate change issues.

2. (SBU) Indonesia will focus on financial incentives to prevent
deforestation and land degradation. GOI officials remain unclear
about the specific form this should take, but they would view
positively any support for REDD (Reducing Emissions from
Deforestation and Degradation) initiatives, and are open to private
sector approaches. Following the MEM, the Indonesians are clearly
interested in the trade-clean technology linkages, including
financing and technology transfer for developing countries. End
Summary and Introduction.

Reaction to Major Economies Process: Reassured
--------------------------------------------- -

3. (SBU) Minister of Environment Witoelar and others cautiously
approached the MEM as a potential "confidence building measure" and
a "political building block" for a successful outcome at COP-13
(reftel). The MEM appears to have surpassed these modest Indonesian
expectations. Salman Al-Farisi, the MFA representative at the MEM,
recently told us that they are now reassured that the MEM process
would not undermine or detract from the UNFCCC process. According
to presidential advisor Dino Djalal, the members of Indonesia's MEM
delegation briefed President Yudhoyono after their return from the
U.S., and the President was pleased with the outcome of the meeting.


Bogor and Desired Outcomes: "A Kind of Warm Up"
--------------------------------------------- --

4. (SBU) Witoelar's public statements since the MEM indicate that he
views the pre-COP meeting as a similar building block. Bogor will
not be a meeting to corner participants on policy positions but an
attempt to bring countries' respective positions closer together in
advance of December. In his words, it will be "a kind of warm-up"
to help countries prepare their strategies and positions for a
successful COP-13. In addition to discussions of a post-Kyoto
Protocol emissions reduction scheme, the Indonesians want active
consideration of financial incentives to prevent deforestation.
Besides carbon trading, they have focused on direct
assistance/funding for conservation and reforestation/rehabilitation
of degraded lands.

The Refrain: Your Money, Our Forests
------------------------------------

5. (SBU) The GOI wants the rest of the world to help fund policies
in countries like Indonesia to preserve its rich tropical forests,
but remains unclear about the specific form this would take.
Minister Witoelar and his deputies, as well as Ministry of Forestry
(MOF) officials and Presidential Advisor Dr. Emil Salim, have
suggested a transfer of $5-20 per hectare of forest preserved (in
good condition). This is a nod towards REDD initiatives like the
World Bank's Forest Carbon Partnership Facility (FCPF), which would
slow deforestation by compensating developing countries for carbon
dioxide reductions realized by maintaining their forests. GOI
officials say estimates of non-degraded forest area in Indonesia
that might qualify range from 33-88 million hectares.

6. (SBU) At the same time, officials acknowledge that much research
into and discussion of the science surrounding measuring and
monitoring avoided deforestation are needed. Mr. Wahyudi Wardoyo,
the MOF's Head of the Forestry Research and Development Agency, says
that they are working to compile convincing data and methodologies
that will be acceptable to COP-13 delegates. Officials also stress
that Indonesia has roughly 59.2 million hectares of deforested or
degraded land, and that any future mechanism should include funding
for reforestation and rehabilitation of these lands. They have
called for easing rules under the Clean Development Mechanism (or
any similar future mechanism) so that Indonesia can benefit more
from its forests. Lack of historical forest conversion data
currently impedes Indonesia from participation in CDM-financed
forestry projects.

Technology, Trade, and Adaptation Funding
-----------------------------------------

7. (SBU) In addition to financial mechanisms to protect rainforests,
the GOI is interested in the trade-clean technology linkages,
including financing and technology transfer for developing
countries. GOI officials, including Dr. Emil Salim, have repeatedly
stated the importance of finance, technology transfer, and the
private sector (usually in terms of carbon credits and trading)
following the MEM. The MFA's Salman Al-Farisi, Director for
Development, Economic and Environmental Affairs, told us recently
that following the MEM, the GOI is keen to hear additional details
from the U.S. regarding trade and technology transfer issues.

Comment
-------

8. (SBU) The Bogor meeting is an opportunity for you to reemphasize
that the MEM process will complement and reinforce the UNFCCC
process. You will want to stress that the U.S. places great
importance on the issue of climate change and shares Indonesia's
desire for a successful outcome at COP-13. On forests specifically,
you may want to point out that the U.S. is making available
approximately $19.6 million to protect forests in Indonesia under
the Tropical Forest Conservation Act, in addition to funding
regional programs on illegal logging, habitat preservation, and
sustainable forest management.

HUME

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