VZCZCXRO9357
RR RUEHAG RUEHAP RUEHCHI RUEHCN RUEHDE RUEHDF RUEHGI RUEHHM RUEHLZ
RUEHMA RUEHMR RUEHPA RUEHPB RUEHRN
DE RUEHJA #0396 0590443
ZNR UUUUU ZZH
R 280443Z FEB 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 8120
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUCNWTO/WORLD TRADE ORGANIZATION COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHKL/AMEMBASSY KUALA LUMPUR 2458
RUEHBK/AMEMBASSY BANGKOK 8346
RUEHGP/AMEMBASSY SINGAPORE 6275
RUEHBS/USEU BRUSSELS
RUEHGV/USMISSION GENEVA 7735

UNCLAS JAKARTA 000396 
 
SIPDIS 
 
SINGAPORE FOR SUSAN BAKER 
 
SIPDIS 
SENSITIVE 
 
DEPT PASS TO USTR SCHWAB 
DEPT FOR EAP/MTS, EAP/IPE, EB/TPP, EB/TPP/BTA 
COMMERCE FOR JKELLY AND EBRZYTWA 
GENEVA PASS TO USTR 
USTR FOR BNORTON AND JWEISS 
USTR FOR BWEISEL AND KELHERS 
TREASURY FOR IA-BAUKOL 
EEB FOR ASCHEIBE 
 
E.O. 12598: N/A 
TAGS: ECON ETRD WTO ID
SUBJECT: DEMARCHE DELIVERED: INDONESIA CONSIDERS U.S.-EC TAFT GOODS 
PROPOSAL 
 
REF: STATE 12905 
 
¶1. (SBU) SUMMARY:  Embassy Jakarta and the European Commission (EC) 
jointly delivered reftel demarche to Mr. Ansari Bukhari, Director 
General of Textiles, Metal and Multifarious Industries, Ministry of 
Industry.  He had not seen the joint proposal yet, so we gave him a 
copy and reviewed the main points.  Bukhari said that the Government 
of Indonesia (GOI) agreed "in principle" to streamlining and 
standardizing labeling but would need to study the proposal more 
closely before committing to publicly co-sponsor or support it.  End 
Summary. 
 
¶2.  (SBU) Bukhari explained that the GOI was in process of preparing 
new legislation on labeling requirements driven by concerns over 
consumer protection and controlling illegal transshipments.  He said 
that if the Taft Goods proposal simplifies labeling, Indonesia would 
consider supporting it.  Bukhari expressed reservations though on 
supporting any measure that while ostensible streamlining 
requirements would actually complicate them.  He added "Indonesia 
has had bad experiences" with regulations that in effect become new 
technical barriers to trade, especially for small businesses. He 
mentioned specific concerns on requirements relating to textile 
content (which could become an issue as the proposal allows for 
fiber content.) 
 
¶3.  (SBU) Bukhari explained that that Indonesian industry have so 
far not complained over labeling requirements on their exports, but 
saw the advantage of reduced cost through harmonized labeling 
requirements.  He promised to study the proposal and share it with 
his intra-ministerial colleagues and advise us if the GOI has any 
specific objections. 
 
HUME