VZCZCXYZ0002
PP RUEHWEB

DE RUEHJA #8794/01 1950135
ZNR UUUUU ZZH
P 140135Z JUL 06
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 7193
RUEHRC/DEPT OF AGRICULTURE WASHDC PRIORITY
INFO RUEHML/AMEMBASSY MANILA 2843
RUEHGV/USMISSION GENEVA 7415
RUEHML/AMEMBASSY MANILA 2844
RUEHBK/AMEMBASSY BANGKOK 7196

UNCLAS JAKARTA 008794 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
USDA FOR U/S PENN, A/U/S/ LAMBERT FAS/OA/YOST, ROBERTS, 
FAS/CMP/DLP/HWETZEL, WRIGHT, MAGINNES 
FAS/ITP FOR MIRALES, CHEN-MOULEC, SHEIKH, MACKE 
FAS/CMP/HTP FOR SISSON, MCLEOD, RASMUSSEN 
FAS/ICD/PETTRIE 
DEPT PASS TO USDA/APHIS/PIM, FSIS 
DEPT PASS USTR/OCONNER, KATZ, BURST 
GENEVA FOR AG MIN COUNSELOR MILLER 
MANILA FOR APHIS/DOS SANTOS 
BANGKOK FOR APHIS/CARDENAS 
 
E.O. 12958: N/A 
TAGS: ETRD EAGR ID
SUBJECT: AMBASSADOR MEETS AG MINISTER TO DISCUSS MARKET 
ACCESS FOR U.S. FRUIT 
 
¶1. (SBU) Summary.  Ambassador Pascoe accompanied by Ag 
Counselor called on Minister of Agriculture Anton 
Apriyantono on July 12.   The lead topic for discussion was 
technical market access barriers for US fresh fruit, 
especially grapes and apples.  In addition, the Ambassador 
also raised market access for US beef and Avian Influenza 
(AI).  End Summary 
 
----------- 
The Thrust. 
----------- 
 
¶2.  (SBU) In a meeting July 12 with Minister of Agriculture 
Apriyantono, Ministry Quarantine Directorate General 
representatives Syukur Iwantoro, Head of the Agricultural 
Quarantine Board Arfany Bastony and his technical staff Dwi 
Putra Setiawan, Ambassador Pascoe expressed his 
disappointment and concern with the lack of progress made on 
a number of market access barriers constraining US 
agricultural exports to Indonesia.  The Ambassador noted 
that inappropriate import bans exist for US chicken 
products, beef and beef products, and now the GOI seems 
intent upon imposing yet another non-tariff barrier, 
unsupported by scientific analysis, on US fresh fruit.  All 
of these actions appear to suggest a concerted attempt to 
shut off market access for US agricultural products, which 
comprise 1/3 of all US exports to Indonesia. 
 
¶3.  (U) In contradistinction, the US and Embassy/Jakarta 
staff have made crucial interventions on behalf of 
Indonesian exports to the US, and the Ambassador cited 
frozen shrimp as a prime example. 
 
¶4.  (SBU) The Ambassador noted particular US concern with 
Regulation 37, which has the prospect of severely curtailing 
US fresh fruit shipments, in particular grapes since the 
shipping season is ongoing, and apples in the near future. 
The Ambassador delivered a letter drawn from talking points 
supplied by USDA/APHIS (NB: Copies of this letter will be 
forwarded electronically to USDA).  In the letter, the 
Ambassador requests recognition of the US fruit fly free 
regions as previously explained to the Ministry, and 
requests immediate Agriculture Ministry approval of the use 
of Additional Declarations (ADs) as opposed to the 
treatments proposed in Regulation 37 for US fresh fruit 
exported to Indonesia. 
 
-------------- 
And the Parry. 
-------------- 
 
¶5.  (SBU) Minister Apriyantono replied that the Ambassador's 
assertion that the GOI was working to limit US agricultural 
exports to Indonesia was "not entirely true."  In fact he 
noted that the Government of Indonesia (GOI) is about to 
lift the ban on US beef and beef products, a consequence of 
the second case of BSE in the US over a year ago.  He stated 
that the Ministry will look at beef exports on a "zonal 
basis."  In addition, he stated that Meat and Bone Meal 
(MBM) imports from the US would be allowed under the new 
regime, initially apparently for only one firm that he 
mentioned by name - Baker Commodities.  (Comment: It is 
unclear at this point how the Ministry will implement its 
"zonal basis" beef import regulation.  In any case, the 
Ministry has informed us that it will notify the change in 
import regime to the WTO.  Word on the street is that this 
notification is imminent. End Comment.) 
 
-------------------------------------- 
Regulation 37 and the Technical Issues 
-------------------------------------- 
 
¶6.  (U) Minister Apriyantono said that the imposition of 
Regulation 37 applies to all countries and is a "normal 
process."  He turned the technical discussion over to 
his technical staff, who raised the following issues: 
 
 
a)How is it that the Eastern Cherry Fruit Fly (Rhagoletis 
cingulata) does not exist in the cherry producing regions in 
the western US which supply product for export to Indonesia? 
 
b)Quarantine officials, who have been provided a wealth of 
data regarding the fruit fly free regions of the US, the 
existence or non-existence of various species in the US, and 
the US fruit fly free standards in three previous meetings 
and via correspondence, asked for "additional information" 
regarding fruit fly free regions in the U.S.  When 
questioned by Ag Counselor as to exactly what additional 
information was required, the answer was inchoate - just 
"more scientific information". 
 
c)Quarantine officials raised concerns regarding the 
possible immigration of apple maggot to areas currently free 
in close proximity to those now infested. 
 
d)Quarantine officials asked that these data be provided, 
and after review they would decide upon the fruit fly free 
status of these areas in the US. 
 
e)For the first time in these ongoing discussions, the 
possibility of a "site visit" by Quarantine was mentioned. 
 
¶7.  (SBU) The Ambassador and Ag Counselor noted the US has 
supplied virtually all data requested by Ministry officials 
via correspondence, in meetings or via the USDA.GOV web 
site.  They strongly encouraged the Quarantine official to 
act promptly to avoid the closing down of the Indonesian 
market for grapes, which are now entering the shipping 
season, and for all other fresh fruit from the US. 
 
------------------ 
The Red Herring... 
------------------ 
 
¶8.  (SBU) The Head of the Quarantine Board then raise the 
issue of the Food and Drug Administration (FDA) Automatic 
Detention for Indonesian-origin cocoa beans.  He noted that 
the issue has been going on for at least five years.  This 
is a long-standing issue; the FDA website notes that 
Automatic Detention was first imposed on Indonesian cocoa 
beans in the early 1990s.  (Comment: FDA is prepared to 
remove Indonesia's cocoa exporters from the list as soon as 
they cease shipping insect infested cocoa to the US.  The 
Ministries of Agriculture, Trade and Foreign Affairs have 
all been involved in this issue and understand it well. This 
is a red herring.  We are sending them a letter one more 
time explaining the U.S. position.)  End Comment. 
 
--------------------- 
Avian Influenza Redux 
--------------------- 
 
¶9.  (SBU) The final issue discussed in the meeting, was 
Avian Influenza (AI).  The Ambassador noted the rising level 
of concern from international experts and from US officials 
regarding the apparent inability of Indonesia to contain the 
virus in its poultry sector.  Minister Apriyantono replied 
that he was informed that international experts at a recent 
WHO/FAO conference in Jakarta (to which the Minister was 
invited but did not attend) had concluded that Indonesia was 
on the "right track" and that there was in this case a 
"serious distortion of information" regarding Indonesia's 
efforts on the animal health side.  He further noted the 
"complexity of Indonesia" with respect to controlling AI, in 
particular the fact that 30 million Indonesians keep 
backyard chickens.  The Ambassador reiterated his concern 
about the course of AI in poultry populations, and noted 
that other countries with complex poultry industries such as 
Thailand, Vietnam and Turkey have implemented effective AI 
counter-measures. (Comment: July 12 press reports quoted 
Apriyantono as saying he had fired the Director for Animal 
Health in his Ministry for "poor performance" on combating 
 
AI.  This casts doubt on the notion of being on the "right 
track", but also makes the Minister appear more engaged than 
he is in the AI issue.  End Comment.) 
 
¶10.  (SBU) Comment.  Embassy/Jakarta appreciates the rapid 
response overnight by FAS and APHIS to provide the most 
recent letter to Syukur Iwantoro, Head of the Agricultural 
Quarantine Board, which was delivered this morning.  We 
encourage USDA agencies and others to continue to press the 
GOI on the issue of market access for US fresh fruit.  We 
will continue to do so from this end as well.  While the 
overall tone of this meeting was amiable, it is no surprise 
that the Minister would reply "not entirely true" when 
queried about the general protectionist thrust of his 
Ministry's trade policy.  The apparent reality is that it is 
"mostly true".  Fully one third of our exports to Indonesia 
are typically in the food and agriculture domain, roughly $1 
billion annually.  Beating back the Ministry of 
Agriculture's (not so) latent protectionism will require 
concerted efforts, and most likely the continued expression 
of our interests frequently, and at all levels. We sent 
copies of the letter to Minister Apriyantono to the Minister 
of Trade and to his superior, the Coordinating Minister for 
Economic Affairs.  End Comment. 
 
PASCOE