VZCZCXYZ0016
PP RUEHWEB

DE RUEHJA #7662 1671009
ZNR UUUUU ZZH
P 161009Z JUN 06
FM AMEMBASSY JAKARTA
TO SECSTATE WASHDC PRIORITY 5961

UNCLAS JAKARTA 007662 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MTS; EB/TPP/BTA/ANA 
USTR FOR DKATZ AND BWEISEL 
 
E.O. 12958: N/A 
TAGS: ETRD ECON PREL ID
SUBJECT: MINISTER OF TRADE REQUEST GSP TRADE RELATED 
EARTHQUAKE ASSISTANCE 
 
¶1. (SBU) Embassy recieved on June 15 the following letter 
from Minister of Trade Mari Pangestu to USTR Susan Schwab 
requesting that the U.S. Government consider providing 
termprary GSP access for textile and garment companies in 
areas affected by the May 27 earthquake in the regions of 
Jogjakarta and Central Java. 
 
¶2.  (SBU) BEGIN TEXT OF MINISTER OF TRADE'S LETTER 
 
Minister of Trade of the Republic of Indonesia 
Our Ref. No. 507 /M-DAG/6/2006 Jakarta, 13 June 2006 
¶H. E. Ambassador Susan C. Schwab 
US Trade Representative 
Washington, D. C. 
U.S.A. 
 
Dear Ambassador Schwab, 
As I am sure you are aware, the recent earthquake in central 
Java has had a devastating effect on the social and economic 
fabric of the region. Our Government has just launched a 
three month state of emergency. 
 
The causalities figures are very substantial with severe 
damage to infrastructure, manufacturing complexes, and retail 
and distribution outlets. From the perspective of the 
Ministry of Trade, we are urgently focusing efforts to try to 
reopen markets so that essential foods can again be traded. 
 
We are most grateful for the support shown by foreign donors 
and in particular the willing and spontaneous assistance 
provided by the US Government. Our Government is also relying 
heavily on the manufacturing base in the region to assist in 
the relief process. Most of these companies have temporarily 
closed down to focus their efforts on helping the population 
in the immediate environment by providing temporary shelter, 
blankets and food. The efforts of these companies are 
significant and instrumental in relieving the pain and 
distress in those areas where the relief efforts have still 
not reached. 
 
The manufacturing base in the region affected comprises of 
furniture, handicraft industries such as silverware, textiles 
and garment. In discussing the relief effort with the 
Indonesian Textile Associations (API), I was informed that 
over 80 of their member companies are affected by the 
earthquake and this figure will be higher as not all textile 
and garment companies are members of the 
API. 
 
Bearing in mind the devastating effect of the earthquake and 
the key role being played by companies in the relief effort, 
I wish to request the US Government to consider provide 
temporary GSP access for textile and garment companies in the 
affected regions. This temporary access would not only 
contribute to the recovery process of the companies affected, 
but it would also represent a form of acknowledgement of the 
efforts they have made in trying to restore some form of 
normality in their immediate environment. 
 
I do not believe that this temporary access would lead to a 
surge in exports that would damage the US industry in that 
our own manufacturing base is overshadowed by Asian 
neighbours and the region of Central Java represents a 
relatively small portion of the overall capacity of the 
textile and garment industries in Indonesia. 
 
I am most willing to provide all the information to support 
this request for temporary access for GSP treatment. I do 
look forward to hearing from you as soon as possible. 
 
Sincerely yours, 
Mari Elka Pangestu 
 
CC: Ambassador of the Republic of Indonesia to the USA 
Washington, D.C. 
 
END TEXT MINISTER OF TRADE'S LETTER 
AMSELEM