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Cablegate: Ambassador Discusses Isps Port Review and Civil

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RR RUEHWEB

DE RUEHJA #7666/01 1692345
ZNR UUUUU ZZH
R 182345Z JUN 06
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 5967
INFO RUEHGP/AMEMBASSY SINGAPORE 5346
RULSJGA/COMDT COGARD WASHDC
RHMFIUU/TSA HQ WASHINGTON DC
RUHGCWN/COGARD MSO DET SN

UNCLAS JAKARTA 007666

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR EB/TRA/OTP (HAYWOOD) AND EB/OES/QA (DIAMOND)
DEPT ALSO FOR EAP/IET
COGARD FEACT YOKOTA AB JA FOR GRIFFITTS AND BLAIR
SINGAPORE FOR COGARD GRIFFITTS
TSA FOR J. BRECHT CLARK

SIPDIS
SINGAPORE FOR TSA

E.O. 12958: N/A
TAGS: ASEC EAIR ECON ETRD EWWT ID PREL PTER
SUBJECT: AMBASSADOR DISCUSSES ISPS PORT REVIEW AND CIVIL
AVIATION WITH TRANSPORTATION MINISTER

REF: JAKARTA 4366

1. (SBU) Summary. The Ambassador urged Minister of
Transportation Hatta Rajasa on June 12 to encourage his
Ministry to make its best efforts to improve port security
prior to the June 19-29 Coast Guard final review of
Indonesian port security under the International Shipping and
Port Facility Code (ISPS). He noted that an unfavorable
outcome to the review in the form of a Coast Guard 'Port
Security Advisory' (PSA) could result in delays that would
significantly increase costs to shipping companies, and
seriously impact Indonesia's export and maritime-based
economy. While noting that some facilities in Indonesia
already practice good security, the Ambassador summarized
concerns the Coast Guard has identified at a number of port
facilities, particularly poor access control and gaps in
fencing. Rajasa responded that port security is extremely
important for both Indonesia's economy and international
reputation, and directed his staff to take 'tough measures'
to improve security conditions. He fully agreed that
Indonesia 'must comply' with this international standard.
The Ambassador also reviewed progress on Bali Airport
security and praised the Ministry of Transportation (MOT) for
the growing cooperation with Boeing on aviation safety
issues. End summary.

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ISPS Concerns Outlined
----------------------

2. (SBU) The Ambassador met Minister of Transportation Hatta
Rajasa on June 12 to update him on the U.S. Coast Guard
review of Indonesian ports for compliance with security
practices under the ISPS Code. The Ambassador noted that the
Coast Guard had visited Indonesia numerous times since
November 2004 for consultations and professional exchanges
aimed at improving security, and thanked Minister Rajasa and
his staff at the Directorate General for Sea Transportation
(DGST) for their excellent cooperation and full access
throughout these visits. The Ambassador explained that a
team of Coast Guard officials would conduct their final
review June 19-30, visiting port ffacilitiesat Tanjung Priok
(Jakarta), Semarang (Central Jaa), Dumai (Sumatra), and
Bontang (Kalimantan).
3. (SBU) The Ambassador described in general termsthe Coast
Guard's findings to date, including th fact that some

facilities like the Pertamina terminal in Balikpapan maintain
excellent security. However, at other facilities port
officials have made little or no progress at improving
security, including the critical Port of Tanjung Priok in
Jakarta. During their May 1-5 consultations at Tanjung
Priok, Coast Guard officials found no improvement in security
conditions since previous visits in September 2005 and in
March 2006 (Reftel). The Coast Guard cited several areas of
concern common to many facilities, including:

--poor access control and checking of identification badges;
--inadequate or poorly maintained fencing;
--inadequate monitoring of secure areas;
--lack of review and audit of security practices under a Port
Facility Security Plan as approved by each facility; and
--insufficient conduct of regular security drills and
exercises

4. (SBU) The Ambassador noted another serious issue is the
DGST's issuance of Statements of Compliance (SOCs) to all of
Indonesia's international port facilities, even though many
clearly have never met ISPS standards. The Coast Guard
believes this practice casts doubt on Indonesia's credibility
and overall implementation of the ISPS code. Rajasa
responded with concern to this information, and questioned
DGST staff present at the meeting about the issue. (Note:
DGST has pledged to revoke SOCs if facilities are found out
of compliance in the upcoming review.) Rajasa also stated
that port security is extremely important for both
Indonesia's economy and international reputation, and
directed his staff to take 'tough measures' to improve
security conditions. He fully agreed that Indonesia 'must
comply' with the ISPS standards.

Possible Impact of Coast Guard Port Security Advisory

--------------------------------------------- --------

5. (SBU) The Ambassador also explained the process the Coast
Guard would follow should its final review find facilities
that fail to comply with the ISPS. Following a 90-day
mitigation period, the Coast Guard may issue a PSA, a public
notice resulting in increased inspections and entry delays
for ships entering the U.S. from Indonesia. The PSA applies
to any ship having visited Indonesia in the last five port
calls. The Ambassador warned that delays in U.S. ports for
ships coming from Indonesia under the PSA would significantly
increase costs to shipping companies, and seriously impact
Indonesia's export and maritime-based economy. This would be
a blow to our bilateral relations, since U.S. - Indonesia
trade relations are steadily increasing. Under a PSA, the
Coast Guard could also require the posting of armed security
guards while a vessel is in a U.S. port.

Steps Taken Toward Compliance
-----------------------------

6. (SBU) DGST officials at the meeting described briefly
steps they have taken in the past month in preparation for
the Coast Guard final review. After the Coast Guard visit in
May, Director of Sea and Coast Guard Soeharto presented a
brief action plan on May 17 that includes a directive to DGST
officials to revoke SOCs if the facility in question fails to
meet ISPS standards. Director General for Sea Transportation
Harijogi subsequently notified in writing all 190 ISPS port
facilities in Indonesia directing them to take immediate
steps toward compliance with ISPS. Inspectors from DGST
recently visited the facilities scheduled for review by the
Coast Guard starting June 19.

7. (SBU) Harijogi has previously told us the DGST's greatest
challenge is access control at Indonesia's 26 public and
general cargo ports, because of limited government resources
and the large number of persons who enter and exit each day
as vendors and for employment, a part of the 'port culture'
in Indonesia. For their part, Coast Guard officials have
repeatedly recommended DGST focus on achievable results,
suggesting DGST establish internal audit teams and highlight
facilities with good security as a bench-mark for others.
They have encouraged DGST to focus on low-cost solutions to
improve access control and fix other security problems.
Should a facility be out of compliance, Coast Guard officials
also stated they would view favorably a swift decision by
DGST to pull an SOC. During their May visit, the Coast Guard
provided DGST a written list of areas for improvement at
three Tanjung Priok port facilities the DGST hopes eventually
to use as 'best practices' models for other ports.

Impact of a PSA on U.S. Port Operators
--------------------------------------

8. (SBU) Issuance of a PSA could also immediately impact U.S.
energy and mining companies that operate private ports in
Indonesia, or ship through public port facilities. To
mitigate this impact, the Coast Guard can issue an exemption
from the PSA list to specific facilities that meet ISPS
requirements, upon audit by an independent inspector
acceptable to the Coast Guard. In May 2006, Coast Guard
officials briefed several U.S. oil, gas, and mining companies
about the exemption process, which could affect between
20-100 facilities across Indonesia. Company executives
expressed concern whether the Coast Guard would approve the
exemptions quickly. However, the Coast Guard officials could
not predict a time frame for approval since it has never
issued a PSA for a country the size of Indonesia, and
expected that large numbers of facilities would likely apply
for exemption at the same time.

Bali Airport Security and Cooperation with Boeing
--------------------------------------------- ----

9. (SBU) The Ambassador also took the occasion to discuss
several aviation matters. He noted significant improvements
in security at the Bali airport, subject to a Public Notice
by the Transportation Security Administration (TSA) since
December 2005. The Ambassador thanked Rajasa for the close
cooperation of airport officials with the TSA, and noted

frequent consultations in Indonesia with TSA representatives.
Minister Rajasa expressed the goal the airport be ready in
the 'next couple of months', to request reassessment by TSA,
and hopefully removal of the Public Notice. The Ambassador
also praised the growing relationship between Indonesian
airlines and Boeing. He pointed out that Boeing will conduct
several seminars on aviation safety for key aviation
officials and airline companies in Indonesia between June and
October. Rajasa clarified that recent concerns about the
safety of Boeing 737-200 models were more about maintenance
standards, and that the goal of 'exchanging' older planes for
newer models
centers on fuel efficiency, noise, and cost of maintenance.
Citing the recent Boeing sales to Lion Air, and on-going
negotiations with other airlines, Rajasa said "people in
Indonesia are comfortable with Boeing". Rajasa said he plans
to visit Seattle in August for a ceremony at Boeing with Lion
Air officials.
AMSELEM

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