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Cablegate: Doe Megaports Initiative On the Table, but has Hurdles To

VZCZCXYZ0022
RR RUEHWEB

DE RUEHJA #1847/01 2770315
ZNR UUUUU ZZH (CCY ADX0E2D49A MSI3880 611)
R 030315Z OCT 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 0238
INFO RHMFIUU/DEPT OF ENERGY WASHDC
AMEMBASSY SINGAPORE

UNCLAS JAKARTA 001847

SIPDIS

C O R R E C T E D C O P Y (ADDED ADDRESSEE)

DEPT FOR EAP/RSP; IO/T; PM/PPA; OES/STC;EEB/TRA
DEPT PASS TO DOE/NSSA - JMILLER
SINGAPORE FOR DHS/COAST GUARD - SSTOERMER
E.O. 12958: N/A
TAGS: ETRD EWWT KNNP KTIA ID
SUBJECT: DOE Megaports Initiative on the Table, but Has Hurdles to
Overcome

REF: Jakarta 526

1. (U) Summary. After over 2 years of limited bilateral talks on
the Megaports Initiative, the Department of Energy (DOE) presented
anew the Initiative to the Indonesian government and offered a draft
agreement to implement the program in Indonesia. DOE's proposal for
future cooperation includes providing and installing the Megaports
radiation-detection infrastructure at Jakarta's Tanjung Priok Port,
the largest sea container port in the country. The DOE
representatives responded to Indonesia's concerns about entering
into a Megaports partnership. These concerns included: data
sharing, a perceived excess of port/customs security initiatives
with unclear interrelationships, and implementation issues such as
the destination of screened cargo, efficiency impacts, equipment
location, and operation and maintenance. The meeting helped dispel
false impressions and allay Indonesian concerns about the Program.
The Foreign Ministry (MFA) will coordinate a response after further
Indonesian interagency consideration. End Summary

2. On September 15 in Jakarta, Jeffrey Miller and Charles Massey of
DOE's National Nuclear Security Administration (NNSA) discussed the
Megaports Initiative with an Indonesian government interagency
group. Miller and Massey gave a detailed presentation on the
radiation-detection program focusing on implications for Indonesia's
seaports. After a lengthy discussion, DOE presented a draft
Megaports Memorandum of Understanding (MOU). MFA hosted the
meeting, run by Bunyan Saptomo, Director for North and Central
American Affairs. Representatives from the following Indonesian
agencies attended: MFA, Customs, Bapeten (Nuclear Regulatory
agency), Ministry of Transportation, Ministry of Trade, the State
Secretariat, the Coordinating Ministry for Political, Legal, and
Security Affairs, the National Intelligence Agency, and the Tanjung
Priok Port Authority. This meeting was the first formal bilateral,
interagency discussion on the Megaports Initiative since 2005.

3. The DOE presentation helped to dispel misconceptions about the
program; however interlocutors raised some recurring issues. The
first was related to data sharing. According to Customs officials,
Indonesian law would prevent them from sharing any information
unless it is approved on a case-by-case basis by the Director
General. Customs believes that the law would apply to data
generated by the DOE-supplied Megaports systems if Customs is
operating the equipment. Miller and Massey sought to clarify
whether this restriction is related to all data that would be
generated by the DOE-supplied radiation detection system, or only
proprietary information, such as the name of a shipper or
intelligence-related information. Customs officials said that they
would consult with their Director General on the subject. This is
an important issue because basic to the Megaports Initiative is the
exchange of information on how the system is working and any
information on detections or seizures; this would not include
proprietary or intelligence data.

4. A second issue was the perception of too many USG proposals for
seaport security initiatives with unclear interrelationships. An
MFA representative said that given the overload of proposals,
trainings and programs, it would take time to review this proposal
and reach agreement. Third, port authorities and others were
concerned about who would operate and maintain the equipment, where
it would be placed in the crowded port, and how it would affect
traffic flow. Fourth, several participants were under the mistaken
assumption that the Megaports system would only screen U.S. bound
containers and questioned the need for Megaports given the
relatively low volume directly to the U.S. from Indonesia. DOE
emphasized that Megaports is a global cargo
security/nonproliferation program and the objective is to screen
containerized cargo regardless of destination. A Megaports
installation in Indonesia would screen imports, exports, and any
transshipped or transiting cargo. Finally, there was some debate
about the need for a legally binding agreement. (Note: In past
years, MFA had requested a "legally binding" agreement. DOE also
left a standard MOU (not legally-binding) with MFA for their
consideration. Based on discussions at the margins of the meeting,
Saptomo appears to favor a non-legally binding agreement. Several
years ago DOE and Indonesia started their Megaports discussions with
a non-legally binding MOU, and Miller told Saptomo that DOE is
willing to negotiate, finalize, and sign such an MOU. End Note.)

5. MFA will coordinate a response after further consideration by the
Indonesian government. Tanjung Priok, the largest port in the
country, located in Jakarta, is proposed as the first Indonesian
port if Megaports is implemented in Indonesia. Miller and Massey
also discussed with MFA the possibility of simultaneous
implementation at Tanjung Priok and Surabaya; DOE would be open to
this if MFA proposed it. Of the issues raised by the Indonesian
government, Miller and Massey consider the data sharing issue as
most significant, requiring further clarification from Indonesian
Customs. They believe that they resolved most of the other concerns


during the meeting and were pleased by receptive statements from
several agencies. Miller noted that the issues raised by Indonesian
officials are issues that Megaports representatives continue to
encounter in other seaports, and thus far have not been
insurmountable. DOE told the Embassy that Indonesian concerns (para
3 and 4) could be resolved and that a visit to a Megaports site in
another country might help allay concerns. Miller and Massey
extended such an invitation to the Government of Indonesia for its
consideration during the meeting. Finally, DOE invited Indonesian
officials to contact other countries participating in Megaports to
understand how they addressed similar concerns.

6. (U) J. Miller contributed to and approved this message.

HUME

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