VZCZCXYZ0006
PP RUEHWEB

DE RUEHJA #1658/01 1651053
ZNR UUUUU ZZH
P 141053Z JUN 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 5103
RUEHRC/DEPT OF AGRICULTURE WASHDC
INFO RUEHML/AMEMBASSY MANILA 3083
RUEHGV/USMISSION GENEVA 7580
RUEHKL/AMEMBASSY KUALA LUMPUR 2344
RUEHHI/AMEMBASSY HANOI 0536
RUEHBK/AMEMBASSY BANGKOK 8000
RUEHBY/AMEMBASSY CANBERRA 0828
RUEHHK/AMCONSUL HONG KONG 2354
RUEHMU/AMEMBASSY MANAGUA 0033
RUEHGP/AMEMBASSY SINGAPORE 6048

UNCLAS JAKARTA 001658 
 
SIPDIS 
 
SIPDIS 
 
USDA DU/S LAMBERT, DU/S TERPSTRA 
USDA/FAS/SRITCHIE, DSMITH 
FAS/OA YOST, MILLER 
FAS/OCRA/WOOLSEY, HIGGISTON, RADLER 
FAS/OSTA/SISSION, SSHNITZLER, CHAMILTON 
FAS/OFSO/DEVER 
DEPT PASS TO USDA/APHIS 
DEPT PASS USTR/RCROWDER, OCONNER, KATZ, BURST, ENRIGHT 
GENEVA FOR MIN COUNSELOR MILLER 
MANILA FOR APHIS/THOMAS 
KUALA LUMPUR FOR AG COUNSELOR GRESSEL 
HANOI FOR AG ATTACHE WADE 
BANGKOK FOR AG COUNSELOR MEYER, APHIS/CARDENAS 
CANBERRA FOR AG COUNSELOR WAINIO, APHIS 
MANAGUA FOR AG SPECIALIST 
SINGAPORE FOR AG SPECIALIST 
HONGKONG FOR AG TRADE OFFICER 
 
E.O. 12958: N/A 
TAGS: ETRD EAGR
SUBJECT: Indonesia Animal Product Update 
 
Reftel (JAKARTA 001270) 
 
¶1. Summary: Post met with Turni Rusli Syamsudin, the Director of 
Public Veterinary Health and members of his staff twice during the 
week of June 4, 2007 to discuss poultry, ruminant meat and bone 
meal, and beef. The Directorate General of Livestock Services (DGLS) 
is characterizing the poultry ban as a warning and plans to resume 
issuing import permits in 3 months. DGLS has completed its 
evaluation of its ruminant meat and bone meal (MBM) control system 
and determined it is insufficient and will continue restricting 
imports of U.S. MBM to one producer for an undetermined period. DGLS 
is inpatient to receive an invitation from USDA to visit the United 
States and inspect BSE-related controls. In a follow-up meeting, 
Indonesian beef importers explained their desire to resume trade in 
time to have beef in retail stores for the holiday season beginning 
in the middle of September. End Summary. 
 
Poultry 
------- 
 
¶2. Based on Article 11 in Decree 27, DGLS is no longer issuing 
import permits for U.S. turkey, day old chicks, whole poultry 
carcass, and duck originating from any U.S. state as well as poultry 
meal originating from the state of West Virginia. Article 11 states 
that Indonesia will not import from a country with notifiable avian 
influenza. 
 
¶3. DGLS is labeling this as a "warning" rather than a ban. It hopes 
that this will make it easier to resume trade 3 months after the 
final report by the United States to the OIE. If it were a ban, then 
the ban would need to be lifted by Ministerial decree. 
 
¶4. An APHIS letter to the Director of DGLS was sent Wednesday, June 
13 requesting that the trade restrictions be limited to those 
products recommended by the OIE Animal Health Terrestrial Code. 
 
Ruminant Meat and Bone Meal 
--------------------------- 
 
¶5. DGLS says that imports of U.S. MBM will continue to be limited to 
one producer. DGLS has completed its review of the control system to 
ensure that ruminant materials are not fed to ruminants. The report 
has determined that the control system is not effective. DGLS 
mentioned the findings of ruminant material in poultry and feather 
meal by Quarantine in Surabaya as an example of the lack of 
controls. (See Reftel) DGLS will continue the limited trade to give 
time for the control system to be improved. When asked, DGLS had no 
suggestions on areas of cooperation with the USDA to improve its 
control system. 
 
Beef 
----- 
 
¶6. FAS/Jakarta met with DGLS on Tuesday followed by a meeting that 
also included the U.S. Meat Export Federation (USMEF) on Thursday 
during the week of June 4. During both meetings, DGLS expressed 
frustration because they did not understand why USDA had not sent an 
invitation for them to visit the United States. They would like to 
discuss BSE safeguards with USDA officials and to see the system, 
including laboratories. 
 
¶7. USMEF explained that this was not possible if DGLS placed 
restrictions beyond U.S. requirements. They were disappointed to 
hear that placing restrictions requiring a beef export verification 
program and negotiated FSIS certificate would increase the time it 
would take before trade could resume and that these steps could not 
be taken until after GOI decided what products it would accept. 
 
¶8. Indonesia is focused on allowing imports of boneless beef, heart, 
liver, tongue, and oxtail. After the discussion with USMEF, DGLS is 
considering opening to all beef products. DGLS committed to 
addressing the subject with the Director of DGLS and the Minister 
after receiving the invitation. DGLS requested information on the 
amount of U.S. beef consumption, production, and export to support 
the discussion. FAS/Jakarta has provided the information. 
 
¶9. Indonesia plans to inspect and approve every plant for halal, but 
not certify. A representative from the halal certifying body in the 
United States will likely need to accompany DGLS on the tours. 
 
¶10. DGLS will require that each plant wanting to export to Indonesia 
complete an application that will be reviewed before the trip. They 
will use importer preference if the number of plants exceeds the 
number they can visit in this trip. Then DGLS was expecting to send 
the list of approved plants to USDA. 
 
¶11. Comment:  The first sign of possible momentum came during the 
meeting with USMEF. DGLS is concerned about resuming imports in time 
for the holiday season. They were expecting that trade could resume 
after they returned from their trip, using the previous certificate. 
DGLS expressed that they do not understand the delay on USDA's 
behalf. They assumed that because they had not received a response 
to their April 4 letter stating their plans, USDA had no concerns. 
In their view, USDA is expressing concerns only now that GOI is 
ready to visit, resulting in their frustration. 
 
¶12. Indonesian beef importers also expressed frustration because 
trade has not resumed in a meeting later that day with USMEF. It is 
clear that the GOI will receive pressure from importers to resume 
trade in all products if that will result in U.S. beef arriving in 
time for the holiday season. If not, importers are considering 
pressuring DGLS to resume trade on a plant-by-plant basis rather 
than working with USDA because they also perceive USDA as 
unresponsive. What is unclear is if DGLS would permit such an 
arrangement because they emphasize formal government-to-government 
meetings and the need for a formal invitation from the government. 
 
HEFFERN