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