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Cablegate: Demarche Response On Indonesia Scheme for Pilotage in The

VZCZCXRO7957
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #2199/01 3390058
ZNR UUUUU ZZH
R 040058Z DEC 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 0878
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHBY/AMEMBASSY CANBERRA 3366
RUEHPB/AMEMBASSY PORT MORESBY 4118
RUEHKO/AMEMBASSY TOKYO 2804
RUEHLO/AMEMBASSY LONDON 0908

UNCLAS SECTION 01 OF 02 JAKARTA 002199

SIPDIS
SENITIVE

E.O. 12598: N/A
TAGS: EWWT PHSA PREL ID
SUBJECT: DEMARCHE RESPONSE ON INDONESIA SCHEME FOR PILOTAGE IN THE
STRAIT OF MALACCA

REF: A) STATE 112590
B) SINGAPORE 1228
C) CANBERA 1080
D) VALDEZ-OBRIEN EMAILS

JAKARTA 00002199 001.2 OF 002


1. (U) This message is Sensitive But Unclassified (SBU). Please
protect accordingly.

2. (SBU) Summary. The Foreign Ministry (DEPLU) and Transportation
Ministry confirmed that the Indonesian pilotage program in the
Strait of Malacca (SOM) is an ongoing voluntary program. The
program was not vetted within the Indonesian government and the
Transportation Ministry announced it in September without DEPLU's
knowledge. Moving forward, DEPLU will coordinate an interagency
effort to assess future plans for this and other pilotage programs
and to draft general guiding principles for pilotage programs. They
would present the draft in 2009 to the Tripartite Technical Experts
Group (TTEG) and the International Maritime Organization (IMO).

3. (SBU) DEPLU acknowledged Indonesia's commitments under the Law of
the Sea and said Indonesian pilotage programs will comply with
international law - this includes not interfering with existing
archipelagic sea lane passage or the rights of sovereign immune
vessels (e.g., warships). Not withstanding this, the Ministry of
Transportation and DEPLU believe there is room for voluntary and
compulsory pilotage programs in the Strait of Malacca (SOM) or its
ports and other Indonesian water bodies. Both agencies point to the
Australian Torres Strait program and other compulsory port pilotage
programs as precedent. Mission delivered Ref A points. End Summary.


DEPLU to coordinate review of the pilotage program
- - - - - - - - - - - - - - - - - - - - - - - - - -

4. (SBU) On December 2, Adam Tugio, DEPLU officer responsible for
Law of the Sea and maritime issues in the Directorate for
International Treaties, confirmed that the voluntary pilotage
program was not coordinated within the Indonesian government prior
to public announcements. He noted pilotage programs have been
discussed within the TTEG since 2004. Tugio said the TTEG agreed in
2007 to establish guidelines for pilotage programs in the region,
but no action was taken. He said the current voluntary program was
a Transportation Ministry effort within this context. Tugio added
that DEPLU will lead an interagency effort to develop pilotage
program guidelines consistent with international law, and develop a
first draft of the guiding principles for presentation to the TTEG
in 2009 and subsequently to the IMO.

5. (SBU) Tugio noted that there are voluntary and compulsory
pilotage programs around the world including in the U.S. and the
Torres Strait. In response to Ref A points on the Torres Strait, he
said consensus was not reached within the Legal Committee or the
Navigation Committee of the IMO on the status of the Torres Strait
pilotage program. In terms of future pilotage schemes, Tugio said,
in his opinion, sovereign immunity for certain vessels including
warships would take precedence over any pilotage program (voluntary
or compulsory). He added that any pilotage program will take into
account the three existing SOM archipelagic sea lanes. He said
Indonesia would consult with IMO before implementing any future
pilotage program and would continue to be a faithful party to Law of
the Sea.

Transport Ministry looking toward compulsory programs
- - - - - - - - - - - - - - - - - - - - - - - - - - -

6. (SBU) On November 7, Captain Purnama S. Meliala, Deputy of the
Directorate for Ports and Dredging in the Ministry of
Transportation, said the voluntary pilotage program is moving
forward, respects international law, and is desired by the SOM
users. He said that within two years he would like to make the
pilotage program obligatory and expand it to other Indonesian waters
(Ref D). He gave the Embassy a copy of the pilotage program
implementing regulation, Decree 63, signed December 28, 2007 (sent
to OES via email). Purnama said that since the program is
voluntary, the Indonesian Government was well within its rights. He
added that the program has been implemented since November 1,
voluntarily for VLCC (very large crude carriers/"very large ships")
between 2 points in the SOM (North of Tanjung Balai Karimun and
North of Batam Island) shown on the Decree 63 map attachment.
Purnama said the relevant Port Authority (Pelindo I) is operating
the program and no fees are being charged yet. The 43 graduated
pilots (noted in earlier press reports and Ref D) are running the
program. Purnama said his hope is for 600 pilots after 2 years.

7. (SBU) Though the pilotage program is voluntary, Purnama
explicitly wants to make it obligatory. He could not explain the
legal basis for an obligatory program but said the Indonesian

JAKARTA 00002199 002.2 OF 002


government would find a way. He said the Australians are doing the
same thing in the Torres Strait. In response to Ref A points on
Torres Strait, he said that only the U.S. and Singapore disagree
with the Australian program.

Indonesian Rationale
--------------------

8. (SBU) Purnama said the reasons for the pilotage programs are: a
demand for the service by commercial ships, safety and marine
environment protection, and evidence that other littoral countries
are allowing pilotage services in the SOM. He said commercial ships
in the SOM want the pilotage service and that some shipping
companies have thanked him for the program. Purnama said piloted
ships would be less likely to have accidents. He described a recent
ship grounding incident that impacted shipping lanes and could have
impacted the environment. Purnama said an increased presence by
Indonesian pilots would also increase the security in the SOM (i.e,
from pirates). Purnama said Malaysian and Singaporean pilots, some
"wearing government uniforms", illegally charge ships for pilot
services. He quickly added that the littoral governments deny
official involvement in these services. Purnama said that since
Malaysians and Singaporeans are currently offering pilotage services
illegally, Indonesia is going to do it legally and regulate it.

Opposition to compulsory programs from Senior Advisor
- - - - - - - - - - - - - - - - - - - - - - - - - - -
9. (SBU) Indonesian Senior Advisor and Law of the Sea expert Hasim
Djalal did not know about the pilotage program as of late October.
Djalal's initial reactions to news of the pilotage program were: the
program could not apply to ships that were merely transiting (i.e.,
not entering port), the program would need International Maritime
Organization (IMO) approval, and the SOM situation is distinct from
that of the Torres Strait.

HUME

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