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Cablegate: Indonesia - Coast Guard Reviews Port Security Compliance

VZCZCXYZ0024
RR RUEHWEB

DE RUEHJA #8455/01 1870757
ZNR UUUUU ZZH
R 060757Z JUL 06
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 6821
RULSJGA/COMDT COGARD WASHDC
INFO RUEHGP/AMEMBASSY SINGAPORE 5371

UNCLAS JAKARTA 008455

SIPDIS

SIPDIS
SENSITIVE

DEPT FOR EB/TRA/OTP (HAYWOOD) AND EB/OES/QU (DIAMOND)
DEPT ALSO FOR EAP/IET
COGARD FEACT YOKOTA AB JA FOR GRIFFITTS AND BLAIR
SINGAPORE FOR COGARD GRIFFITTS

E.O. 12958: N/A
TAGS: EWWT ECON EAIR ETRD PREL ID
SUBJECT: INDONESIA - COAST GUARD REVIEWS PORT SECURITY COMPLIANCE

REF: Jakarta 07666

1. (SBU) Summary. A team of U.S. Coast Guard officials found
significant progress toward implementation of port security
requirements under the International Shipping and Port Facility
Code (ISPS) during a June 19-29 visit to four Indonesian ports.
The team concluded that security conditions in three of the four
ports ranged from `adequate' to `excellent', while conditions at
Tanjung Emas port in Semarang were `maturing but not yet
implemented'. The team will recommend deferring a final
determination on Indonesia's ISPS compliance until early 2007
because of concerns about the sustainability of ISPS security
measures and the lack of consistent oversight by the Directorate
General of Sea Transportation (DGST). The Coast Guard team
encouraged DGST officials to expand recent security improvements
at select ports to all Indonesian ports, and will request DGST
submit a plan for security sustainability and oversight. They
also offered assistance on improving vessel safety standards and
practices in light of recent ferry accidents in Indonesia. End
summary.

2. (SBU) A team of U.S. Coast Guard officials with the
International Port Security Program visited Indonesia June 19-29
to review port facilities for compliance with ISPS security
standards. The visit was the latest in a series of Coast Guard
missions to Indonesia, during which they have performed site
visits to 19 facilities in eight ports. The Coast Guard team
reviewed security standards in the following locations during
their June visit:

--Port of Tanjung Priok (Jakarta)
-Jakarta International Container Terminal (JICT)
-Pelindo II (Container and General Cargo)
--Port of Bontang (East Kalimantan)
-PT Pupuk Kaltim (Fertilizer)
-PT Badak LNG Terminal
-PT Indominco Mandiri Coal Terminal
--Port of Dumai (East Sumatra)
-Pelindo I (General Cargo)
-Passenger Ferry Terminal
--Port of Tanjung Emas (Semarang - Central Java)
-Semarang Container Terminal
-Semarang Cruise Ship Terminal

Improved Security, but is it Sustainable?
-----------------------------------------

3. (SBU) The Coast Guard found security conditions at Tanjung
Priok and Dumai as adequate, conditions in Bontang as excellent,
and Tanjung Emas (Semarang) as "maturing but not yet fully
implemented". Captain Paul Gugg, head of the Coast Guard team,
commended DGST and port officials for making significant strides
in improving security standards. Gugg attributed the rapid pace of
improvements to the personal involvement of Transportation
Minister M. Hatta Rajasa in the wake of his June 12 meeting with
the Ambassador. At this meeting (ref), the Ambassador advised
Rajasa of the possibility that the Coast Guard might issue a
public Port Security Advisory (PSA) should it find that Indonesia
had not substantially implemented the ISPS Code. A director-level
DGST official accompanied the Coast Guard team to all facilities
and kept Rajasa advised daily throughout the visit.

4. (SBU) Gugg noted in particular improvements at the cargo and
container ports of Tanjung Priok and Dumai since previous visits
by Coast Guard officials in September 2005 and May 2006. However,
there was evidence that much of the improvement had occurred in
the run-up to the Coast Guard's visit, when port officials had
focused on tightening access control at facilities to be visited.
While this effort demonstrated commitment and capability to
improve security in the short term, Gugg underscored that port
officials needed to continue refining security procedures at all
ports in Indonesia to sustainable levels. The Coast Guard team
noted that gate access control at several facilities was
inconsistent, even though port officials had deployed a large
number of security personnel. At Tanjung Priok in Jakarta,
Indonesia's largest port, the head port official conceded that
that his staff "may not be able to maintain" the level of security
they demonstrated to the Coast Guard.

5. (SBU) Because of concern over sustainability of improvements,
the Coast Guard recommended their evaluation of ISPS compliance in
Indonesia remain "open" pending a further review early in 2007.
In the interim, the Coast Guard requested the DGST provide a plan
detailing how DGST will monitor and sustain security standards at
ports across Indonesia, including a timetable for bringing all
facilities into full compliance. For its part, the Coast Guard
will submit a report to DGST in the next few weeks outlining their
findings, and plans to assist the DGST through regular
consultations in Indonesia by Singapore-based Coast Guard staff.

6. (SBU) The Coast Guard also noted that DGST has not yet issued
ISPS Statements of Compliance (SOCs) to approximately 20 smaller
facilities (out of nearly 220 total international facilities in
Indonesia). These facilities receive international shipments only
sporadically. The Coast Guard advised DGST to either prohibit
international shipments at these smaller ports until it issues
SOCs to them, or alternatively, to require ports to adopt formal
security procedures sufficient to accomplish the intent of ISPS
(without issuing an SOC) to cover those limited international
shipments.

Coast Guard Offers Vessel Safety Assistance
-------------------------------------------

7. (U) Given the recent rash of ferry accidents in Indonesia, Gugg
offered Coast Guard assistance on vessels safety inspections,
citing the Coast Guard's long history in ship and maritime safety.
Gugg noted this is especially important given the high volume of
passenger ferry traffic between hundreds of Indonesian islands.
DGST officials responded enthusiastically to this offer. Gugg
indicated the assistance could include consultations from
regionally-based Coast Guard safety experts.

8. (SBU) Comment. The potential negative impact of a PSA on
Indonesia's exports and international reputation clearly got
Rajasa's attention, and the DGST has noticeably improved its
oversight of port security conditions. However, consistent,
nationwide implementation of ISPS in this far-flung nation will
remain a significant challenge. The keys to keeping up momentum
will be promptly delivering the Coast Guard written report to
Rajasa and DGST staff, and maintaining a steady schedule of
consultations in the run up to the next formal review in early
2007. End Comment.

PASCOE

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