INDONESIAN CIVIL AVIATION CHIEF TALKS REFORM

C O N F I D E N T I A L JAKARTA 003249 SIPDIS SIPDIS DEPT ALSO PASS NTSB FOR MACINTIRE/BENZON/ENGLISH DEPT FOR EAP/MTS AND EB/TRA/AN SINGAPORE FOR FAA-WALSH SINGAPORE FOR TSA-SAHAGIAN E.O. 12958: DECL: 11/26/2017 TAGS: EAIR ECON ETRD PGOV PTER ASEC ID SUBJECT: INDONESIAN CIVIL AVIATION CHIEF TALKS REFORM REF: JAKARTA 2854 Classified By: ECON OFFICER YVONNE GONZALES FOR REASONS 1.4 (B) AND (D) ¶1. (SBU) SUMMARY: During a meeting on November 14, 2007, Directorate General of Civil Aviation (DGCA) chief Budhi Suyitno emphasized the directorate's newest slogan, 3S plus 1C: safety, security, service and compliance. He told us DCGA's efforts will be comprehensive, focusing on improvements in security for airports and safety for airlines based on International Civil Aviation Organization (ICAO) standards. End summary. DGCA Needs Incentives to Increase Capacity -------------- ¶2. (SBU) Suyitno said he would finish reorganization at DGCA this year. The new emphasis is on capacity building, including professionalizing the regulatory corps and providing on the job training, particularly for junior level inspectors. He has requested that the Ministry of Finance allow DGCA to keep 90% of its revenues to support these measures, including pay increases for DGCA employees comparable to incomes earned at state owned enterprises. At current salary levels, DGCA suffers frequent attrition of its best people to the airlines, according to Suyitno. He says a key DGCA objective is developing a corps of autonomous and transparent inspectors. He says they are planning to hire retired inspectors on contract to help counteract deficient numbers of inspectors. Civil Aviation Reform -------------- ¶3. (C) Suyitno said that civil aviation could not wait for new laws to be developed through the lengthy legislative process and that the GOI would make changes by ministerial decree until Parliament changes the law. Civil aviation reform is on the legislative agenda after railways and maritime regulation for mid-2008. He said that DGCA drew on advice from the Federal Aviation Administration and ICAO in drafting the proposed civil aviation regulatory reform. The proposed legislation does not specify the legal authority responsible for airport safety and security, leaving this a contentious issue between state-owned airport operators and DGST. ¶4. (SBU) Suyitno held up Ngurah Rai Airport in Bali as the model secure airport in Indonesia. After two years of working closely with Ngurah Rai Airport officials to improve its security, the Transportation Security Administration lifted the public notification requirement in October 2007 (see reftel). Suyitno Needs to Show Results -------------- ¶5. (SBU) Industry watchers say Suyitno enjoys a favorable reputation because of his willingness to seek assistance from ICAO and other reputable aviation organizations. In July 2007, Transportation Minister Jusman Syafii Djamal and ICAO Chairman Roberto Kobeh Gonzales signed an agreement requiring the Indonesian government to improve standards of aviation safety, service and security. Now that Suyitno has been on the job eight months, industry watchers say he needs to start showing progress or risk damaging his reputation. HUME