DOE Megaports Initiative on the Table, but Has Hurdles to

UNCLAS JAKARTA 001847 SIPDIS C O R R E C T E D C O P Y (ADDED ADDRESSEE) DEPT FOR EAP/RSP; IO/T; PM/PPA; OES/STC;EEB/TRA DEPT PASS TO DOE/NSSA - JMILLER SINGAPORE FOR DHS/COAST GUARD - SSTOERMER E.O. 12958: N/A TAGS: ETRD EWWT KNNP KTIA ID SUBJECT: DOE Megaports Initiative on the Table, but Has Hurdles to Overcome REF: Jakarta 526 ¶1. (U) Summary. After over 2 years of limited bilateral talks on the Megaports Initiative, the Department of Energy (DOE) presented anew the Initiative to the Indonesian government and offered a draft agreement to implement the program in Indonesia. DOE's proposal for future cooperation includes providing and installing the Megaports radiation-detection infrastructure at Jakarta's Tanjung Priok Port, the largest sea container port in the country. The DOE representatives responded to Indonesia's concerns about entering into a Megaports partnership. These concerns included: data sharing, a perceived excess of port/customs security initiatives with unclear interrelationships, and implementation issues such as the destination of screened cargo, efficiency impacts, equipment location, and operation and maintenance. The meeting helped dispel false impressions and allay Indonesian concerns about the Program. The Foreign Ministry (MFA) will coordinate a response after further Indonesian interagency consideration. End Summary ¶2. On September 15 in Jakarta, Jeffrey Miller and Charles Massey of DOE's National Nuclear Security Administration (NNSA) discussed the Megaports Initiative with an Indonesian government interagency group. Miller and Massey gave a detailed presentation on the radiation-detection program focusing on implications for Indonesia's seaports. After a lengthy discussion, DOE presented a draft Megaports Memorandum of Understanding (MOU). MFA hosted the meeting, run by Bunyan Saptomo, Director for North and Central American Affairs. Representatives from the following Indonesian agencies attended: MFA, Customs, Bapeten (Nuclear Regulatory agency),Ministry of Transportation, Ministry of Trade, the State Secretariat, the Coordinating Ministry for Political, Legal, and Security Affairs, the National Intelligence Agency, and the Tanjung Priok Port Authority. This meeting was the first formal bilateral, interagency discussion on the Megaports Initiative since 2005. ¶3. The DOE presentation helped to dispel misconceptions about the program; however interlocutors raised some recurring issues. The first was related to data sharing. According to Customs officials, Indonesian law would prevent them from sharing any information unless it is approved on a case-by-case basis by the Director General. Customs believes that the law would apply to data generated by the DOE-supplied Megaports systems if Customs is operating the equipment. Miller and Massey sought to clarify whether this restriction is related to all data that would be generated by the DOE-supplied radiation detection system, or only proprietary information, such as the name of a shipper or intelligence-related information. Customs officials said that they would consult with their Director General on the subject. This is an important issue because basic to the Megaports Initiative is the exchange of information on how the system is working and any information on detections or seizures; this would not include proprietary or intelligence data. ¶4. A second issue was the perception of too many USG proposals for seaport security initiatives with unclear interrelationships. An MFA representative said that given the overload of proposals, trainings and programs, it would take time to review this proposal and reach agreement. Third, port authorities and others were concerned about who would operate and maintain the equipment, where it would be placed in the crowded port, and how it would affect traffic flow. Fourth, several participants were under the mistaken assumption that the Megaports system would only screen U.S. bound containers and questioned the need for Megaports given the relatively low volume directly to the U.S. from Indonesia. DOE emphasized that Megaports is a global cargo security/nonproliferation program and the objective is to screen containerized cargo regardless of destination. A Megaports installation in Indonesia would screen imports, exports, and any transshipped or transiting cargo. Finally, there was some debate about the need for a legally binding agreement. (Note: In past years, MFA had requested a "legally binding" agreement. DOE also left a standard MOU (not legally-binding) with MFA for their consideration. Based on discussions at the margins of the meeting, Saptomo appears to favor a non-legally binding agreement. Several years ago DOE and Indonesia started their Megaports discussions with a non-legally binding MOU, and Miller told Saptomo that DOE is willing to negotiate, finalize, and sign such an MOU. End Note.) ¶5. MFA will coordinate a response after further consideration by the Indonesian government. Tanjung Priok, the largest port in the country, located in Jakarta, is proposed as the first Indonesian port if Megaports is implemented in Indonesia. Miller and Massey also discussed with MFA the possibility of simultaneous implementation at Tanjung Priok and Surabaya; DOE would be open to this if MFA proposed it. Of the issues raised by the Indonesian government, Miller and Massey consider the data sharing issue as most significant, requiring further clarification from Indonesian Customs. They believe that they resolved most of the other concerns during the meeting and were pleased by receptive statements from several agencies. Miller noted that the issues raised by Indonesian officials are issues that Megaports representatives continue to encounter in other seaports, and thus far have not been insurmountable. DOE told the Embassy that Indonesian concerns (para 3 and 4) could be resolved and that a visit to a Megaports site in another country might help allay concerns. Miller and Massey extended such an invitation to the Government of Indonesia for its consideration during the meeting. Finally, DOE invited Indonesian officials to contact other countries participating in Megaports to understand how they addressed similar concerns. ¶6. (U) J. Miller contributed to and approved this message. HUME