VZCZCXRO3066
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #0765/01 1201025
ZNR UUUUU ZZH
R 301025Z APR 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 2240
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS COLL
RHEHAAA/WHITE HOUSE WASHDC
RHEHNSC/NSC WASHDC

UNCLAS SECTION 01 OF 02 JAKARTA 000765 
 
SIPDIS 
 
DEPT FOR EAP/MTS AND OES 
USAID FOR RDMA/BANGKOK AND ANE 
 
E.O. 12598: N/A 
TAGS: SENV KGHG ENRG PREL ID
SUBJECT: The EPA in Indonesia: Growing Partnership Opportunities 
 
¶1. (U) Summary:  A recent U.S. Environmental Protection Agency 
(USEPA) visit to Indonesia has highlighted clear opportunities for 
environmental cooperation.  Indonesian officials appreciated USEPA 
reengagement, and are eager to participate in the Methane-to-Markets 
program.  The Indonesian Steering Committee for Improving Fuel 
Quality welcomed support on its road map towards low-sulphur fuels, 
and the City of Jakarta is a likely near-term partner to improve air 
quality.  The Supreme Court is interested in a partnership to 
improve environmental governance.  The Ministry of Environment 
requested consideration of a Memorandum of Understanding with USEPA, 
most likely addressing environmental governance issues.  Other 
potential areas for cooperation include climate change, mercury, 
water quality, and industrial and agricultural waste.  End Summary. 
 
¶2. (U) Background: USEPA Senior Advisor for Asia Pacific Programs 
Mark Kasman met with numerous Indonesian officials and NGO 
representatives in late April to explore opportunities for USEPA 
collaboration and partnership in Indonesia.  The USEPA does 80 
percent of its international work in designated priority countries: 
Brazil, Russia, India, Indonesia, China, South Africa, Canada, 
Mexico, and the Caribbean.  Indonesia was elevated to a priority 
country in January.  The primary purpose of Mr. Kasman's mission was 
to consider how USEPA might stage increased collaboration with 
Indonesia.  Immediate focus areas are climate change, clean fuels 
and vehicles, and environmental governance.  Other areas for 
cooperation include addressing transboundary pollution, reducing 
mercury use, and improved air and water quality. 
 
Strong Interest in Methane-to-Markets: Ministry of Energy 
--------------------------------------------- --------- 
¶3. (U) Dr. Lobo Balia, Assistant to the Minister of Energy and 
Mineral Resources, expressed interest in and support for Indonesia's 
inclusion in the Methane-to-Markets program (and formal transactions 
are expected).  Methane-to-Markets focuses on methods of recapturing 
lost methane from coal mining and other sources.  Dr. Balia stated 
that Indonesia's methane-related priority for the next five years is 
coal bed methane.  The Indonesian government is in the process of 
developing the legal and commercial framework for capturing this 
additional resource from their vast reserves of coal and would 
welcome assistance.  He requested USEPA send a formal Letter of 
Invitation to his Minister for Indonesia's inclusion in the 
Methane-to-Markets program.  He also committed to follow up with a 
recommendation for signing.  In a separate meeting, Aleksandra 
Barnes, City Director for the Clinton Foundation, suggested that 
landfill and solid waste methane capture would also likely provide 
productive partnerships. 
 
Jakarta: Keen on Clean Air, Fuels Partnership 
--------------------------------------------- 
¶4. (U) Clean air and fuels is a potentially rich area for 
cooperation and partnership.  Indonesia currently meets the Euro 2 
standard for vehicle exhaust emissions and desires to raise its 
standard to Euro 4. Discussions with Indonesian counterparts 
revealed the absence of a cost-benefit analysis for cleaner fuels. 
This is an area where USEPA could provide cost-benefit and pricing 
assistance.  Specific programs for collaboration require further 
study, but the Ministry of Environment, the Indonesian Steering 
Committee for Improving Fuel Quality, various NGOs, and the Jakarta 
City Government were notably receptive to the EPA's visit and 
interested in collaboration.  They also signaled that the issue of 
cleaner fuels is mostly a financial and political issue (rather than 
a technical one) that is complicated by Indonesia's fuel subsidies. 
 
 
¶5. (U) The Jakarta City Government stood out as a likely candidate 
for a focused partnership to improve air quality in Jakarta.  Mr. 
Sutanto, Jakarta's Deputy Governor for Transportation and Industry, 
expressed intense interest in developing a partnership with USEPA 
and formal transactions are expected.  Jakarta Governor Fauzi Bowo 
will travel to United States in September and a follow-up meeting is 
expected between USEPA and the Governor during this trip. 
 
Supreme Court Interest in Judicial Training 
------------------------------------------- 
¶6. (U) Judicial capacity building for environmental cases is another 
area ripe for USEPA partnership.  The Indonesian Center for 
Environmental Law (ICEL) and officials of the Indonesian Supreme 
Court expressed enthusiasm and capacity for partnership with the 
USEPA.  Prayekti Murharjati, Deputy Director for ICEL, welcomed 
USEPA's reengagement with Indonesia and referred to an ongoing 
judicial training partnership with Australia.  Wiwiek Awiati, the 
lead for the Supreme Court's Judicial Reform Team, expressed 
enthusiasm for collaboration.  She requested that USEPA send a 
formal letter requesting further discussion of potential 
collaboration with the Supreme Court Chief Justice.  Awiati and 
Kasman both articulated the need to prevent duplication of efforts. 
 
Other Potential Areas of Cooperation 
 
JAKARTA 00000765  002 OF 002 
 
 
------------------------------------ 
¶7. (U) There are several other areas that have potential for 
developing USEPA collaboration.  These include work on climate 
change, mercury reduction from mining, and improved water quality 
through water safety plans.  Bill Parente, Chief of Party of USAID's 
Environmental Services Program, indicated opportunities existed in 
industrial and agricultural waste and water quality, though funding 
was an issue.  Paul Hartman, Chief of Party of USAID's Orangutan 
Conservation Services Program expressed an interest in building 
targeted judicial training into some of its provincial conservation 
efforts. 
 
 
HUME