DEMARCHE DELIVERED ON COMPLIANCE WITH ISPS CODE: INDONESIA

UNCLAS JAKARTA 000361 SIPDIS SENSITIVE SIPDIS DEPT FOR EAP/MTS SINGAPORE FOR COAST GUARD- LT CDR PURGANAN E.O. 12958: N/A TAGS: EWWT KHLS PTER PREL ECON ETRD ID SUBJECT: DEMARCHE DELIVERED ON COMPLIANCE WITH ISPS CODE: INDONESIA REF: (A) R 212111Z DEC 07 COMDT COGARD WASHINGTON DC//G-PC// (B) 2007 JAKARTA 3255 (C)2007 JAKARTA 3086 (D) 2007 JAKARTA 2363 (E)2007 JAKARTA 1690 (F)2007 STATE 111900 (G) STATE 15583 ¶1. (SBU) On February 22, 2008 we formally demarched Director General of Sea Transportation Effendi Batubara, Director of Sea Transport Djoni Algamar and Head of Section for Security Affairs Mukhlis Tohepaly that the U.S. Coast Guard (USCG) will issue a Port Security Advisory (PSA) effective on or about February 26, 2008 and that conditions of entry will be imposed two weeks later on vessels coming to the U.S. from within five port calls of non-exempt Indonesian ports. The Directorate General of Sea Transportation (DGST) officials accepted the demarche with minor protest and expressed interest in continued cooperation with the U.S. on improving Indonesia's port security. ¶2. (SBU) Batubara raised one main point of contention. He complained that the PSA would apply to all non-exempt Indonesian ports when USCG checked International Ship and Port Facility Security (ISPS) Code compliance at just 22 port facilities, only six of which USCG found to be insufficiently compliant. He considered 22 port facilities out of hundreds to be too small of a sample, especially considering that only a minority of those were not ISPS Code-compliant. ¶3. (SBU) Batubara and his staff did not object to waiving the Recognized Security Organization (RSO) requirement for private ports operated by Chevron, Newmont and British Petroleum. However, Tohepaly faulted the USCG for not coordinating meetings and visits with private ports through the Directorate General of Sea Transportation (DGST). Tohepaly said that, according to the ISPS Code, all compliance issues should be directed to the "designated authority." ¶4. (SBU) Batubara said that DGST's priority was to gain exemption for the six public port facilities that USCG previously visited and found to be non-compliant. Algamar requested a format for the Alternative Security Procedure Process (ASPP) report and a list of approved RSOs. Algamar requested that Port Security Liaison Officer Lieutenant Commander Philemon Purganan meet with Indonesian RSOs on his next visit to Indonesia to discuss the ASPP. Algamar also asked for the schedule of the next USCG visit to Indonesia. ¶5. (SBU) DGST officials did not discuss the economic impact of the PSA. In a January 18, 2008 meeting, Ministry of Trade officials told us they did not know what the impact would be, but, if necessary, shippers would redirect their cargo to exempted ports or consolidate their shipments outside of Indonesia. In a meeting on February 22, 2008, Australian Department of Transportation officials said, although they are concerned, they do not have a clear idea of the PSA's impact on Australian shipments to the U.S. ¶6. (SBU) Algamar asked for capacity building to help his staff perform the regulatory function over ISPS Code compliance and port security generally. We told them the USG is committed to the long-term goal of helping Indonesian ports achieve ISPS Code compliance in order to remove the PSA. HUME UNCLASSIFIED 3 SIPDIS UNCLASSIFIED UNCLASSIFIED