ISPS DEMARCHE DELIVERED

UNCLAS JAKARTA 002363 SIPDIS SIPDIS DEPT FOR EAP/MTS SINGAPORE FOR COAST GUARD- LT CDR PURGANAN E.O. 12958: N/A TAGS: PTER EWWT KHLS ECON ETRD ID SUBJECT: ISPS DEMARCHE DELIVERED REF: A) JAKARTA 1690 B)STATE 111900 ¶1. (U) We formally demarched on August 24, Director General of Sea Transportation, H. Harijogi, Secretary Ajiph Anwar, and Director of Sea Transport Djony Algemar that the U.S. has determined Indonesia is not significantly implementing the International Ship and Port Facility (ISPS) code. Failure to address these deficiencies within 90 days will lead to the U.S. imposing a Port Security Advisory (PSA) on non-compliant Indonesian ports. ¶2. (U) The Director General expressed serious concern about the impact of a future PSA and the short time given for the far reaching improvements needed to avoid it. The Director General stated that 90 days is not enough time for the national level structural reforms that the Coast Guard requires as proof of significant ISPS implementation. The DG requested an extension of the 90 day period to increase ISPS implementation. We explained that the 90 day period is a limit imposed by U.S. law and, therefore, U.S. Coast Guard cannot grant an extension. ¶3. (SBU) We assured the Director General that there will not be a formal announcement on ISPS before the 90 days are over, but that we would quietly notify the American business community on this issue. [Note: Due to lingering ill feelings over the release of the EU Blacklist on June 28 without adequate consultation with the Ministry of Transportation, the Ministry is extremely sensitive about the public release of regulatory actions. End Note.] ¶4. (U) The Director General stated that Indonesia's main focus will be increasing the number of exempted public ports and special facilities (crude oil ports, LNG terminals, etc.) as well as developing a national action plan to increase ISPS compliance. The Director General asked for U.S. capacity building assistance to increase Indonesia's level of ISPS compliance and to decrease, "the gaps between American standards and Indonesian capacity". We assured the Director General that the U.S. is committed to working together with Indonesia on this issue. Hume