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Cablegate: Das Yoshida Visit to Indonesia

VZCZCXYZ0000
RR RUEHWEB

DE RUEHJA #1801 3020910
ZNR UUUUU ZZH
R 290910Z OCT 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 3684
INFO RHMFISS/DEPT OF ENERGY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS JAKARTA 001801

SIPDIS
SENSITIVE
STATE FOR EAP/MTS
STATE ALSO FOR EEB/ESC/IEC/ENR, S/CIEA
ENERGY FOR PI-30 YOSHIDA AND PI-32 CUTLER
COMMERCE FOR 4430 NADJMI AND 6930
STATE PASS TO USTR EHLERS AND WEISEL
STATE PASS TO USAID EGAT/ESP/GCC COLLIN GREEN

E.O. 12958: N/A
TAGS: ECON ENRG EPET EINV ID
SUBJECT: DAS YOSHIDA VISIT TO INDONESIA

1. (SBU) Summary. Department of Energy DAS Phyllis Yoshida met
recently with Indonesian officials to discuss the timing of the next
round of the Energy Policy Dialogue, and seek further engagement
with the Indonesian government. Former Energy Minister Purnomo
Yusgiantoro supported a near time frame for a new round and
advocated greater renewable energy engagement. Officials from the
National Development Planning Agency considered Yoshida's offer of
greater engagement on clean energy policies to help mitigate climate
change. A senior member of Parliament suggested ways that U.S.
officials could engage members of Parliament to address resource
nationalism. End Summary.

Energy Policy Dialogue Preparation
----------------------------------

2. (SBU) Then-Minister of Energy and Mineral Resources Purnomo
Yusgiantoro discussed issues for the next round of the Energy Policy
Dialogue, although he was aware that he would not retain the energy
portfolio following the new cabinet appointments on October 21.
Purnomo agreed with DAS Yoshida that the EPD should have a strong
focus on energy efficiency and renewable energy in addition to
traditional energy sources. Purnomo was interested in collaboration
with NREL and Berkeley Labs. He cited a Chinese solar power project
in Indonesia, which is intended to have a capacity of 50 MW.
However, he insisted that Indonesia "already gets too much from
China, and we want balance" from other countries.

3. (SBU) DAS Yoshida also stressed issues of cost recovery in a
meeting with Saryono Hadiwidjoyo, Director of Oil and Gas Downstream
Development at the Ministry of Energy and Mineral Resources. She
stated that contract sanctity was critical to attracting and
retaining and foreign investment. Saryono discussed subsidy policy,
citing Indonesia's search for ways to alter Indonesia's costly
consumer fuel subsidies without harming lower-income Indonesians.

Climate Change and Energy Planning
----------------------------------

4. (SBU) In a meeting with National Development Planning Agency
(BAPPENAS) officials Basah Herwono, Director for Forestry and Water
Resources Conservation, and Montty Girianna, Director of Energy and
Resources, DAS Yoshida focused on ways that DOE could collaborate on
clean energy, including renewable energy, that would help mitigate
climate change. She mentioned DOE's intention to provide a $100,000
grant for the Indonesian Climate Change Task Force for energy
issues. Yoshida highlighted that the new administration has
declared energy a top priority, especially green growth goals.
Basah and Montty committed to having proposals by November, most
likely with a focus on an exchange of expertise.

Parliamentary Outreach
----------------------

5. (SBU) Member of Parliament Airlangga Hartarto made
recommendations for greater engagement with Parliament. Airlangga
was the head of Commission 7 in the previous Parliament, which
handles energy, power, and resource issues. Indonesia's Parliament
has become an advocate of resource nationalism, and Airlangga
suggested several approaches to help current members of parliament
incorporate international best practices and benchmarks in their
energy legislation. He stated that DOE could help establish a
program to increase the MPs' awareness and knowledge of resource
issues, although he was unclear whether MP visits to the United
States, or U.S. experts' visits to Indonesia, would be more
beneficial. Airlangga also suggested exchanges that would increase
the quality of the professional staff serving the commission and
individual MPs. Finally, he observed that Parliament lacks a good
library with electronic resources, limiting legislative research
opportunities, and asked for assistance developing one.

6. (U) DAS Phyllis Yoshida cleared on this cable.

HUME

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