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Cablegate: Indonesia Port Security Advisory Update

VZCZCXRO8897
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #3086/01 3100956
ZNR UUUUU ZZH
R 060956Z NOV 07
FM AMEMBASSY JAKARTA
TO RUEHGP/AMEMBASSY SINGAPORE 6201
RUEHC/SECSTATE WASHDC 6938
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHBJ/AMEMBASSY BEIJING 4453
RUEHBY/AMEMBASSY CANBERRA 1504
RUEHUL/AMEMBASSY SEOUL 4276
RUEHKO/AMEMBASSY TOKYO 1069
RUEAHLC/HOMELAND SECURITY CENTER WASHINGTON DC
RUEAIIA/CIA WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 JAKARTA 003086

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR EAP/MTS AND EB/TRA/AN
SINGAPORE FOR COAST GUARD-LT CDR PURGANAN

E.O. 12958: N/A
TAGS: ECON ETRD EWWT PBTS ID
SUBJECT: INDONESIA PORT SECURITY ADVISORY UPDATE

REF: STATE 111900

1. (SBU) Summary: The Port Security Advisory (PSA) for
Indonesia will go into effect on or about November 24, 2007.
In an October 22, 2007 meeting with Embassy and U.S. Coast
Guard (USCG) officials, Directorate General of Sea
Transportation (DGST) officials told the Embassy they would
not attempt to use the Recognized Security Organization (RSO)
process to verify International Shipping and Port Facility
Code (ISPS) compliance. They requested that the USCG return
as soon as possible to verify ISPS compliance at certain
ports. Indonesia will begin receiving significant assistance
to improve port security from the USG, Government of
Australia (GOA) and Government of Japan (GOJ) as early as
December 2007. USCG briefed U.S. companies on the PSA
process on October 23, 2007. End summary.

GOI REJECTS RSO PROCESS
-----------------------

2. (SBU) DGST Head of Patrol and Security Untung and Head of
Security Section Muchlis Tohepaly laid out legal and
financial reasons for not using the RSO process to verify
ISPS compliance. According to Indonesian law, RSOs are not
authorized to conduct any kind of verification of port
facilities. DGST officials said this would require sharing
port security plans with RSOs, which they consider a security
violation. They said the cost of contracting an RSO for ISPS
verification is problematic. Untung and Muchlis requested
that the USCG conduct verification of ISPS compliance at the
six port facilities that have previously been visited by USCG
and did not meet exemption requirements (Belawan
International Container Terminal, Terminal Petikemas Koja
Jakarta, PT Pelabuhan Indonesia II Cabang Padang, Duks PT
Semen Padang, Semarang Conventional/Cruise Terminal and
Jamrud Pelindo III Tanjung Perak), as well as 10-15 other
ports that the DGST considers priorities for exemption based
on the amount of trade to U.S. ports. The USCG
representative explained that the RSO process is a quicker
way to verify ISPS compliance than USCG visits to the ports
and port facilities.

GOI WELCOMES DONOR ASSISTANCE
-----------------------------

3. (U) Untung and Muchlis welcomed port security training and
were positive about the possibility of an Indonesian-based
USCG Liaison and a USG comprehensive maritime security
training needs assessment and plan, which are planned for
early 2008. They specifically asked for training in
conducting tabletop simulation exercises. They requested
that the USG coordinate with the governments of Australia
(GOA) and Japan (GOJ) in providing assistance.

4. (SBU) Australian Embassy Transportation Officer David
Ramsey told us the GOA had authorized, on October 16, 2007, a
five-year $8.5 million maritime security training program for
Indonesia with caveats: the GOA should not announce the
program until the PSA for Indonesia takes effect and the GOA
must coordinate with the USG on training to avoid duplication
of programs. The focus of the GOA program is ISPS
compliance, and is expected to be up and running by mid-2008.
The Indonesia program will be managed by the GOA Department
of Transport and Regional Services and will be modeled after
the East Asia Initiative maritime security program that the
GOA implemented in the Philippines. As part of the East Asia
Initiative, the GOA is developing a $369,000 port security
training program for the Celebes Sea areas of the Philippines
and Indonesia. The GOI has not yet agreed to accept the
program that would include courses for port security
officers, ISPS audit and security awareness.

5. (U) The GOJ has posted a Japan International Cooperation
Agency (JICA) representative at DGST who has responsibility
for advising and developing port security assistance to
Indonesia. In conjunction with the Asia-Pacific Economic
Cooperation, JICA is conducting an ISPS exercise and audit
seminar for DGST December 4-6, 2007. The two-year JICA
position at DGST has one year remaining.


JAKARTA 00003086 002 OF 002


PRIVATE SECTOR GETS INFORMED ON PSA
-----------------------------------

6. (U) Approximately 25 participants, including major
shipping companies American President Lines (APL) and Maersk,
manufacturing companies that supply to U.S. companies
Talbots, Target and Sara Lee and resource companies Chevron
and ConocoPhillips, attended an ISPS briefing by USCG
representative on October 23, 2007. Beyond the direct impact
on their companies, U.S. shippers were interested in the
scope and nature of the U.S. program of ISPS verification.
One participant asked if the International Maritime
Organization or other countries were conducting ISPS
verification. APL-Indonesia President Director Dennis Bras
said his company, which, according to him, has the largest
market share of Indonesian shipping to the U.S., would not be
hurt by the PSA because the company consolidates its
shipments in Singapore. No U.S. or Indonesian company has
yet contacted Post with concerns regarding the impending PSA.


7. (SBU) We have reached out individually to large U.S. and
third country resource companies, i.e. Exxon Mobil, Chevron,
Newmont, Freeport-McMoRan, ConocoPhillips and British
Petroleum, that own or operate ports or facilities in
Indonesia. These ports and facilities do not fall under the
direct supervision of DGST and the USCG has agreed to grant
them temporary exempt status. The USCG has instituted a
separate exemption process for them that involves a briefing
to USCG on the port facility's ISPS implementation and spot
checks by USCG as needed.

NEXT STEPS
----------

8. (SBU) DGST representatives claim that port facilities are
ready for an ISPS compliance verification visit. They have
not taken steps towards lifting the PSA as outlined by USCG,
including submitting a port security plan. We will ask them
to reconsider using the RSO process as recommended by USCG.
HUME

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