VZCZCXRO8897
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #3086/01 3100956
ZNR UUUUU ZZH
R 060956Z NOV 07
FM AMEMBASSY JAKARTA
TO RUEHGP/AMEMBASSY SINGAPORE 6201
RUEHC/SECSTATE WASHDC 6938
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHBJ/AMEMBASSY BEIJING 4453
RUEHBY/AMEMBASSY CANBERRA 1504
RUEHUL/AMEMBASSY SEOUL 4276
RUEHKO/AMEMBASSY TOKYO 1069
RUEAHLC/HOMELAND SECURITY CENTER WASHINGTON DC
RUEAIIA/CIA WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 JAKARTA 003086 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EAP/MTS AND EB/TRA/AN 
SINGAPORE FOR COAST GUARD-LT CDR PURGANAN 
 
E.O. 12958: N/A 
TAGS: ECON ETRD EWWT PBTS ID
SUBJECT: INDONESIA PORT SECURITY ADVISORY UPDATE 
 
REF: STATE 111900 
 
¶1. (SBU) Summary: The Port Security Advisory (PSA) for 
Indonesia will go into effect on or about November 24, 2007. 
In an October 22, 2007 meeting with Embassy and U.S. Coast 
Guard (USCG) officials, Directorate General of Sea 
Transportation (DGST) officials told the Embassy they would 
not attempt to use the Recognized Security Organization (RSO) 
process to verify International Shipping and Port Facility 
Code (ISPS) compliance.  They requested that the USCG return 
as soon as possible to verify ISPS compliance at certain 
ports.  Indonesia will begin receiving significant assistance 
to improve port security from the USG, Government of 
Australia (GOA) and Government of Japan (GOJ) as early as 
December 2007.  USCG briefed U.S. companies on the PSA 
process on October 23, 2007.  End summary. 
 
GOI REJECTS RSO PROCESS 
----------------------- 
 
¶2. (SBU) DGST Head of Patrol and Security Untung and Head of 
Security Section Muchlis Tohepaly laid out legal and 
financial reasons for not using the RSO process to verify 
ISPS compliance.  According to Indonesian law, RSOs are not 
authorized to conduct any kind of verification of port 
facilities.  DGST officials said this would require sharing 
port security plans with RSOs, which they consider a security 
violation.  They said the cost of contracting an RSO for ISPS 
verification is problematic.  Untung and Muchlis requested 
that the USCG conduct verification of ISPS compliance at the 
six port facilities that have previously been visited by USCG 
and did not meet exemption requirements (Belawan 
International Container Terminal, Terminal Petikemas Koja 
Jakarta, PT Pelabuhan Indonesia II Cabang Padang, Duks PT 
Semen Padang, Semarang Conventional/Cruise Terminal and 
Jamrud Pelindo III Tanjung Perak), as well as 10-15 other 
ports that the DGST considers priorities for exemption based 
on the amount of trade to U.S. ports.  The USCG 
representative explained that the RSO process is a quicker 
way to verify ISPS compliance than USCG visits to the ports 
and port facilities. 
 
GOI WELCOMES DONOR ASSISTANCE 
----------------------------- 
 
¶3. (U) Untung and Muchlis welcomed port security training and 
were positive about the possibility of an Indonesian-based 
USCG Liaison and a USG comprehensive maritime security 
training needs assessment and plan, which are planned for 
early 2008.  They specifically asked for training in 
conducting tabletop simulation exercises.  They requested 
that the USG coordinate with the governments of Australia 
(GOA) and Japan (GOJ) in providing assistance. 
 
¶4. (SBU) Australian Embassy Transportation Officer David 
Ramsey told us the GOA had authorized, on October 16, 2007, a 
five-year $8.5 million maritime security training program for 
Indonesia with caveats: the GOA should not announce the 
program until the PSA for Indonesia takes effect and the GOA 
must coordinate with the USG on training to avoid duplication 
of programs.  The focus of the GOA program is ISPS 
compliance, and is expected to be up and running by mid-2008. 
 The Indonesia program will be managed by the GOA Department 
of Transport and Regional Services and will be modeled after 
the East Asia Initiative maritime security program that the 
GOA implemented in the Philippines.  As part of the East Asia 
Initiative, the GOA is developing a $369,000 port security 
training program for the Celebes Sea areas of the Philippines 
and Indonesia.  The GOI has not yet agreed to accept the 
program that would include courses for port security 
officers, ISPS audit and security awareness. 
 
¶5. (U) The GOJ has posted a Japan International Cooperation 
Agency (JICA) representative at DGST who has responsibility 
for advising and developing port security assistance to 
Indonesia.  In conjunction with the Asia-Pacific Economic 
Cooperation, JICA is conducting an ISPS exercise and audit 
seminar for DGST December 4-6, 2007.  The two-year JICA 
position at DGST has one year remaining. 
 
 
JAKARTA 00003086  002 OF 002 
 
 
PRIVATE SECTOR GETS INFORMED ON PSA 
----------------------------------- 
 
¶6. (U) Approximately 25 participants, including major 
shipping companies American President Lines (APL) and Maersk, 
manufacturing companies that supply to U.S. companies 
Talbots, Target and Sara Lee and resource companies Chevron 
and ConocoPhillips, attended an ISPS briefing by USCG 
representative on October 23, 2007.  Beyond the direct impact 
on their companies, U.S. shippers were interested in the 
scope and nature of the U.S. program of ISPS verification. 
One participant asked if the International Maritime 
Organization or other countries were conducting ISPS 
verification.  APL-Indonesia President Director Dennis Bras 
said his company, which, according to him, has the largest 
market share of Indonesian shipping to the U.S., would not be 
hurt by the PSA because the company consolidates its 
shipments in Singapore.  No U.S. or Indonesian company has 
yet contacted Post with concerns regarding the impending PSA. 
 
 
¶7. (SBU) We have reached out individually to large U.S. and 
third country resource companies, i.e. Exxon Mobil, Chevron, 
Newmont, Freeport-McMoRan, ConocoPhillips and British 
Petroleum, that own or operate ports or facilities in 
Indonesia.  These ports and facilities do not fall under the 
direct supervision of DGST and the USCG has agreed to grant 
them temporary exempt status.  The USCG has instituted a 
separate exemption process for them that involves a briefing 
to USCG on the port facility's ISPS implementation and spot 
checks by USCG as needed. 
 
NEXT STEPS 
---------- 
 
¶8. (SBU) DGST representatives claim that port facilities are 
ready for an ISPS compliance verification visit.  They have 
not taken steps towards lifting the PSA as outlined by USCG, 
including submitting a port security plan.  We will ask them 
to reconsider using the RSO process as recommended by USCG. 
HUME