VZCZCXYZ0001
PP RUEHWEB

DE RUEHJA #1379 2321127
ZNR UUUUU ZZH
P 201127Z AUG 09
FM AMEMBASSY JAKARTA
TO SECSTATE WASHDC PRIORITY 3114

UNCLAS JAKARTA 001379 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR EAP/MTS AND EEB/EPPD - N. SMITH-NISSLEY 
 
E.O. 12958: N/A 
TAGS: AMGT BEXP ECON ELAB ETRD KSEP SENV ID
 
SUBJECT:  DUE DILIGENCE ON ACE NOMINEE PT CARGILL INDONESIA 
 
¶1. (SBU) Mission has reviewed the performance of PT Cargill 
Indonesia and reaffirms that its conduct in Indonesia has been 
exemplary. 
 
¶2. (SBU) Are there possible negatives or risks of U.S. embarrassment 
that could result from the potential selection of post's nominee? 
 
None foreseeable.  PT Cargill Indonesia is a well-respected company 
here. 
 
¶3. (SBU) Do you have any information concerning job creation in the 
United States resulting from the operations of the company you 
nominated? 
 
-- PT Cargill Indonesia sells Cargill products in this market, 
creating and maintaining jobs in the United States.  Top-selling 
U.S.-sourced exports include bulk soybeans, wheat and corn; meat and 
bone meal sourced in Texas; and a wide range of food ingredients 
(flavorings, sweeteners and texturizers) produced in multiple 
facilities in the United States.  Cargill provides protein products 
to the food and feed industries by importing, warehousing and 
distributing quality soybeans to the Indonesian tofu and tempe 
industry and feed grains and protein meals to the animal and poultry 
feed industry.  With nearly 60,000 of its 159,000 employees 
worldwide located in the United States, Cargill's operations in 
Indonesia help support the jobs of these U.S. employees and 
countless American farmers.  From 1994 to 2008, Cargill advises that 
it has added an average of 1,000 U.S. jobs annually in the United 
States. 
¶4. (SBU) Assessment of the company's trade and investment activities 
with regard to helping stimulate economic growth in the U.S. and 
increasing American exports? 
-- In addition to selling U.S. exports to Indonesia, Cargill's team 
in Indonesia also expands overall worldwide growth for Cargill, as 
it sources various commodities in Indonesia for use in its 
processing factories around the world.  In its 2009 summary annual 
report, Cargill reports that it opened new or expanded processing 
facilities in the U.S. and in several other countries that enlarge 
its global supply chains in canola, cocoa, palm, soy and biofuels. 
By providing safe, sustainable and competitive raw ingredients 
sourced in Indonesia, PT Cargill contributes to a global supply 
chain which supports the jobs of its U.S. employees and the jobs of 
its U.S. corporate customers.  PT Cargill Indonesia reports that 
40-50 percent of Cargill's global revenues are generated by 
international trade and that 25 percent of its U.S. income is 
directly generated by international trade. 
¶5. (SBU) State of labor conditions in the company's facilities and 
are workers unionized? 
-- PT Cargill Indonesia allows its workers to unionize and it has 
labor unions at two of its plantations.  PT Cargill Indonesia 
reports that about 1,000 of its employees at its Hindoli plantation 
in Sungai Lilin are union members, though only 267 are active and 
paying union dues.  At its Harapan plantation in Manismata, 
Kalimantan, about 5,000 employees are labor union members.  PT 
Cargill Indonesia has a total of approximately 8,500 employees in 
Indonesia. 
¶6. (SBU) Any litigation pending in local courts involving the 
company? 
None material.  PT Cargill Indonesia has occasional tax challenges 
-- of the kind regularly faced by foreign firms doing business in 
Indonesia -- which are heard and resolved in local courts. 
¶7. (SBU) Confirm that the Chief of Mission and others involved in 
nominating process do not hold shares of stock or have other 
financial interests in the company. 
-- Cargill is the largest privately-held company in the United 
States.  Chiefs of Mission (former and current), country team and 
those involved in the nomination process do not own individual 
shares of Cargill or any of its subsidiaries or have any financial 
interest in the company. 
¶8. (U) Embassy point of contact for additional follow-up is Debra 
Juncker, e-mail: JunckerDA@state.gov (Economic Section).