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March 2006


WEEK 1 & 2: (1 - 11 March 2006)

Australia continuing to watch activities Indonesian fishermen
Kupang, E. Nusa Tenggara - Australian authorities continue to watch the activities of Indonesian fishermen although Australia has agreed to handle fish poaching cases involving them in cooperation with Indonesia, Canberra`s top diplomat said. Australian Ambassador to Indonesia Bill Farmer said here Thursday it was true that Indonesian traditional fishermen were free to operate in the exclusive economic zone but they would face strict sanctions if they went too deep into Australian waters. He made the remark in response to a journalist`s question on the tendency of the Australian government to apprehend Indonesian fishermen who were fishing in waters close to the two countries` sea borders. Data from the Indonesian representative in Perth, Australia, Dr Aloysius L Madja, as reported by East Nusa Tenggara Governor, indicated that the number of Indonesian fishermen captured in West Australia in Clear Water II operations in 2005 stood at 196. The number did not include hundreds of Indonsian fishermen who were arrested in Clear Water I operations in early 2005. Those considered to have violated the 1991 Fishery Management Act were legally processed, while fishermen regarded as innocent were deported, he said. Tens of those deported by Australia were mostly young boys and youths. They were exempted from legal sanction as they were considered not to have trespassed on Australian waters before. Most Indonesian fishermen sentenced to jail terms were sent to Hakea prison near Perth in line with a court decision made last October. Indonesian fishermen apprehended by Australian authorities had generally left East Nusa Tenggara (NTT) on at least 30 fishing boats while many of them were not NTT residents. Bill Farmer further said Australia would not allow any foreign fishermen to catch fish deep into its territorial waters, although it had inked the Box MoU in 1974 which allowed Indonesian fishermen to operate in certain Australian waters. Australia had a regulation on fishing activity in sea border areas and did not tolerate trespassing by foreign fishermen, he said. © 2005 LKBN ANTARA.

Corridor boon to Port of Tanjung Pelepas
A centre-piece in the proposed creation of the South-West Johor Development Authority is the designation of a logistics/maritime corridor that will leverage on the world-class Port of Tanjung Pelepas (PTP). The corridor will cover the area around PTP that would be developed to support various maritime industries over the next five years, in line with efforts taken for the integrated development of southern Johor project. Johor Menteri Besar Datuk Abdul Ghani Othman said recently that the port and its surrounding areas have been identified as the core area and a key driver in the implementation of the project covering the International Petrochemical Centre, Maritime Industrial Centre and Regional Bunker Supply Centre. "Various developments would be carried out in the area and PTP itself would continue to be developed as a transhipment hub and a logistics and manufacturing industrial centre through its free zone areas," he said. PTP is expected to n a major beneficiary of the move to create the new development covering the south-western part of Johor, especially in boosting its prospects to emerge as a regional logistics hub. PTP, which has abundant land bank, was accorded Free Zone status in March 1998 and has been attracting a steady stream of regional distribution companies setting up international procurement centres. The Government also appointed PTP as a Free Zone Authority (FZA) on June 16, 1999, to administer both the Commercial Free Zone and the Industrial Free Zone. Pelepas Free Zone is located adjacent to the port and terminal and covers an area of about 405ha This is segmented into different zones depending on the type of activities carried out Of this, about 162ha has been designated as Free Commercial Zone reserved for distribution, logistics, and warehousing activities ideal for consolidation, international procurement centres, regional distribution centres, and distribution services. © The New Straits Times Press (Malaysia) Berhad.

Declaration inked for enhanced maritime security
Islamabad - Pakistan and United States have signed a declaration on enhancing international maritime trade security under a bilateral initiative called "Integrated Cargo/Container Control (IC3) Programme". The Central Board of Revenue (CBR) Chairman, M Abdullah Yusuf and US Ambassador to Pakistan Ryan C Croker inked the declaration of principles at CBR Headquarters. The programme envisages joint screening of US-bound containerized cargo from Pakistan via live video link by Pakistan and US customs officials. Resultantly, the screened cargo will not be re-examined by US Customs on arrival at US ports. The arrangements for implementing the 'IC3 Programme' had been negotiated earlier and were finalized by senior customs officers of both countries. Sources said that the programme had been offered by US Customs and Border Protection Department, under International Maritime Trade Security Plan. Pakistan has been offered partnership under the IC3 programme on thorough assessment of its eligibility to meet various operational standards including advanced level of automation in handling of imports and exports by customs, International Ship and Port Facility Security (ISPS) certification of all Pakistani sea ports. Under the programme, the US-bound cargo containers would be first screened by customs officials through scanners and sensors at Port Qasim with potential extension of this facility to other sea ports and terminals in Karachi in due course of time. The screening results would be viewed simultaneously in Pakistan and US via live video link. The purpose of the programme is to facilitate the flow of genuine commercial cargo from important countries to US markets through their inspection at the port of shipment, instead of at the port of landing and to forestall clandestine movement of dangerous cargo. © Weekly Pakistan Link (Los Angeles).

Human apathy threatens turtles
General ignorance and apathy amongst people is the greatest threat to sea turtles in Fiji waters. Speaking at the 2006-Year of the Sea Turtle Launch last Thursday, the Minister for Fisheries, Konusi Yabaki said despite Fiji's laws to protect sea turtles, there still existed a glaring lack of compliance to safeguard these creatures and people frequently failed to comply with the laws concerning the species. "Although Fiji's national laws provided some measure of protection for turtles under the Environment Management Act, Endangered and Protected Species and Fisheries Acts, and the existing Moratorium banning the harvest of turtles until 2008, there is a lack of compliance to safeguard the existence of seas turtles by honouring the ban or adhering to guidelines set down by the Acts," he said. Mr Yabaki said six out of the seven global species of seas turtles were listed as critically endangered, indicating their vulnerability to extinction. "The depletion of sea turtle population can be largely attributed to the demand for their meat, eggs, skin and shell," he said. "This is further contributed by modern commercial fishing practices. Each year thousands of sea turtles become entangled in fishing nets and drown or end up as by-catch." "Marine pollution whereby hundreds of turtles starve or choke to death after consuming plastic bags they have mistaken for jellyfish and incidences where turtles die through entanglement in debris have demised the population," Mr Yabaki added. He said the threat also extended to the nesting grounds where, especially in the Pacific, much coastal development took place. Climate Change was also a major threat to their existence in terms of their biology and loss of nesting grounds through increased coastal erosion. "It is due to these glaring facts that sea turtles cannot be expected to survive to reproduce on their own over the next decade or two." © 2006, Fiji Times Limited.

IMO to decide on ship coating
The International Maritime Organisation’s sub-committee on Ship Design and Equipment (DE) is expected to finalised performance standards for protective coatings in its 49th session which is expected to sit on next week. The meeting from 20-24 February 2006 is a follow-up session from the 2005 meeting. Last year the sub-committee agreed that coating performance standards should apply to all coatings used in ballast and void spaces on all types of ships, with a target coating life of 15 years. The meeting is also look into the amendments to Enhanced Survey Programme for bulk carriers and oil tankers. The sub-committee will review proposed draft amendments to the enhanced survey programme (resolution A.744) regarding surveys of double hull bulk carriers as well as draft amendments to the Condition Assessment Scheme (CAS) regarding change of flag during CAS surveys. In addition to that the 49the session will also finalising the International Life-Saving Appliance (LSA) Code and the Recommendation on testing of LSA (resolution MSC.81 (70)) regarding performance testing and approval standards for SOLAS personal LSA. The sub-committee continued work on the compatibility of life-saving appliances and agreed that three issues needed further consideration: compatibility of immersion suits and lifejackets; compatibility of immersion suits and lifeboat access and capacity; and compatibility of lifejackets and marine evacuation systems. The Sub-Committee also agreed to finalize work at this meeting on inconsistencies in IMO instruments regarding requirements for LSA in order to address inconsistencies and ambiguities which had been identified between the LSA Code, the Recommendation on testing of LSA (resolution MSC.81 (70)) and the Standardized LSA evaluation and test report forms (MSC/Circ.980). © Ports World Sdn Bhd.

The Indo-US nuclear deal - an analysis by Zafarul-Islam Khan
New Delhi - "Welcomed the successful completion of discussions on India's separation plan and looked forward to the full implementation of the commitments in the July 18, 2005 Joint Statement on nuclear cooperation" - these three short lines buried inside the joint communiqué issued here this afternoon after the one-on-one meeting between President George Bush and Prime Minister Manmohan Singh, ended the over four decades-old American sanctions slapped on India after its first nuclear tests in 1974. Today's agreement also means that the hurdles faced by India in procuring nuclear technology and fuel have been removed for good. Moreover, all other current restrictions on India's access to America's high and dual technologies will also be withdrawn as a result. Delhi will be able to do much more business with the US in fields barred to Indians hitherto, with the expectation that the volume of trade between the two countries will double within the next two years from the current US$ 24 billion. Today's agreement is a win-win situation from the Indian point of view. India will be able to build more nuclear power plants. At present it has 15 functional plants with an additional seven under construction. India stuck to it guns during the course of tough negotiations during the last few months. It did not agree to open all its nuclear facilities to international inspection. Instead, it ingeniously divided its facilities into "civilian" and "military" ones and agreed to open only the former to international inspection. According to currently available information, India will place 14 out of its 22 plants under the civilian list. Delhi thinks that the nuclear energy is the answer to its ever-growing needs for power. With this deal India will not have to depend totally on foreign oil and gas for its increasing energy needs. From the American point of view, this deal - a culmination of the Bush-Singh understanding in Washington last July - was not easy and it will be quite hard for President Bush to sell it to the Congress. To start with, India is not a signatory to the NPT. India built its nuclear programme secretly in defiance of international pressures and carried out two nuclear tests (1974 and 1998). In a way the American acceptance of the Indian nuclear position is a reward to India for its consistent defiance and refusal to join the NPT. In contrast, the US is adamant to deny nuclear power to Iran which is not only a signatory to the NPT but has also signed an additional protocol which provides more transparency to Tehran's nuclear activities. To offer this concession, the US had strong and pressing reasons. India for most of the time since independence in 1947 has been at loggerheads with Washington. During Indira Gandhi's time there was open hostility towards the US and India was considered a Soviet ally. All this suddenly changed after 9-11. America started to look at New Delhi as an important potential ally. The idea was warmly welcomed in Delhi then ruled by the Hindu nationalist BJP which wanted to use the US clout to stop Pakistan from supporting militancy in Kashmir. The relationship quickly flourished and by late 2002 we heard both Indian and American officials talk of "strategic partnership". A recent Pentagon report describes India as a "key strategic partner". US wants to engage India in its global schemes. India is already a military partner of the US. Since 2001 it has carried out 35 joint military exercises at sea, land and air, both in the US and in India. Indian Navy ships are already providing escort and security facilities to the American military ships passing through the Arabian Sea and the Indian Ocean on their way to and from the Pacific through the Straits of Malacca in Southeast Asia. Despite its willingness, a popular outcry did not allow the BJP-led Indian government to send Indian troops to Iraq to help out the American occupation forces. The only rationale behind the ongoing joint military drills is that there are certain plans for joint Indo-American military action in future. The US wants to use India as a bulwark in Asia against the Chinese dragon. This kind of cooperation will not go down well with Asia's emerging giant as well as with many popular and political forces within India. Delhi has also successfully sold to the US the idea that a democratic India is a great ally against the Islamic terrorism America is fighting at present. The withdrawal of sanctions against Delhi will help India in many ways. It will open the gates for Indo-US cooperation in lucrative space research and scientific cooperation in many fields which are currently barred to Indians. The US has refused to offer a similar deal to Pakistan. India, Washington says, has demonstrated that it is a responsible nuclear power. Pakistan, on the other hand, is accused of helping nuclear proliferation. In a way today's decision is a tectonic shift in India's foreign policy. After this deal, India is no longer a non-aligned power. It will no longer champion for Third World countries. The Indian elite has clearly decided to throw its lot with the Americans. New India wants to emerge as a global power and enjoy the fruits that go with that status. It is no longer concerned with ethics and morality in matters of policy. The Indian government is implementing this u-turn despite strong opposition from many popular and political quarters, including many of its own allies in the ruling United Popular Alliance (UPA). The current deal is being denounced here by many quarters as a sell out and an acceptance of Uncle Sam's supremacy. But the ruling elite is determined to see through this major change of course in India's foreign policy hoping to latch on the sole superpower. It remains to be seen if a beleaguered President Bush too will be able to muster enough political support to sell this deal to the US Congress. © 2006 The Milli Gazette Online - Pharos Media & Publishing Pvt Ltd (New Delhi).

Indonesia to scrap port levy
IN a bid to stave off industrial unrest, Indonesia is to scrap a 10% value added tax on cargo handling at ports. Transport minister Hatta Radjasa said the finance ministry is preparing a decree that would govern scrapping of the tax. Indonesia’s Land Transport Union, which represents workers in small and medium enterprises, had threatened to stage strikes in Jakarta’s main port of Tanjung Priok and three other ports this month if VAT was not scrapped. Union leaders said the tax coming on top of a 127% hike in fuel prices last October, has imposed a heavy burden on several thousand members. It could have led to a number of job losses, union leaders had warned. Many union members are freelance labourers. Radjasa said following the government decision, union leaders had agreed to cancel plans for industrial action. Parliament is reviewing the 2003 labour law as members say it does not provide for a proper industrial dispute mechanism. © Lloyd's Register - Fairplay Ltd 2006.

Malaysian, Vietnamese navies to cooperate on maritime issues
Kuala Lumpur - The navies of Malaysia and Vietnam will soon establish cooperation to handle maritime problems in the waters of the two countries, Deputy Prime Minister Datuk Seri Najib Tun Razak said Thursday. A proposal for such collaboration was put forward today by visiting Vietnamese Defence Minister Gen. Pham Vantra, said Najib, who is also Defence Minister. Vantra had proposed that both navies establish a hotline to facilitate faster communication in the event there was a need to seek immediate cooperation to resolve problems, such as those relating to fishermen, he told reporters. The Vietnamese defence minister, who is heading a 12-member delegation on a three-day visit to Malaysia, had called on Najib at his office. Najib said the cooperation between the navies would be launched with the signing of a memorandum of understanding (MoU). "They have suggested an MoU as the basis for a cooperative arrangement between our countries," Najib said. Asked the reason for the proposed cooperation, Najib said it was only a matter of opening a communication line between the two forces in preparation to resolve any problem that may come up. At present, said Najib, both countries did not have any formal cooperation between their armed forces. He also said that Vietnam was agreeable to Malaysia hosting the inaugural meeting of Asean defence ministers that was expected to take place in May. © 2006 BERNAMA.

MISC cushioned as rates slip
MISC, Malaysia's national shipping company, has posted a pre-tax profit of $214.6M for the three months to 31 December, a fall of 17% on the same period in 2004. The shipping cycle has moved away from the unprecedented gains achieved last year, MISC said in a statement to the stock exchange. However, stable earnings from existing long-term charters in the LNG, petroleum and offshore businesses will cushion the full impact of the downward cycle, the company said. Pre-tax profit for nine months to 31 December was just 2% lower than for the year earlier, at $562.5M. Turnover rose slightly to $2.1Bn. “The prospect for the shipping industry in the short term will be stable with rates softening on the back of tonnage supply outstripping haulage demand,” MISC said. The subsidiary of state-owned oil and gas giant Petronas is the leader in LNG trades and also has a significant presence in crude oil carriage. The liner business is focused on long-haul routes. © Lloyd's Register - Fairplay Ltd 2006.

More complaints against Port Klang Authority
Port Klang Authority (PKA) came under more scathing attacks by port users for its inability and tardiness in responding to issues and grievances raised by the users. Following the recent criticisms by the International Shipowners's Association of Malaysia (ISOAM) that took the PKA to task for sweeping problems under the rug, the Central Region Shipping Agents Association (CRSA) complained of inaction and delays by the PKA in deciding on critical issues faced by port users which was retarding the competitiveness of the port. ISOAM chairman Datuk Abdul Latiff Abdullah was quoted in a daily last week as saying that if Port Klang wanted to become a maritime hub, PKA as the regulator needs to stop nit-picking, especially against the terminal operators on Port Klang. ISOAM, that represents 33 major foreign shipping lines calling at Malaysian ports, also felt that a lot could be achieved if there was a mindset change to foster a better relationship by regulators, namely the PKA and the two terminal operators. "But over the years, PKA has shown apparent indecisiveness in terms of trying to resolve outstanding issues and these can have far reaching implications," Latiff said. He said regulators were supposed to be those who came up with amicable solutions so that businesses could go on uninterrupted. The president of CRSA, M Gopal said the decision on the inter-terminal transfers (ITT) of containers between container terminals was not only delayed but was made unilaterally. Gopal who leads 60 shipping agents representing shipping lines calling at Port Klang said the decision on the ITT was waited for years by the shipping lines using the port and a decision was only made in mid January 2006. Supporting the views of the 33-member ISOAM that the image of PKA as the regulatory body was at stake because of its indecisiveness, Gopal said the approach taken by PKA would affect the nation's competitiveness. Gopal wanted PKA to adopt a paradigm shift and initiate cost-reduction measures and enhance efficiency. © The New Straits Times Press (Malaysia) Berhad.

Offshore services vessels market to remain robust
Kuala Lumpur - Demand for offshore services vessels (OSV) in the oil and gas sector will remain robust in the years ahead, Research Fellow at Maritime Institute of Malaysia (MIMA) Nazery Khalid said today. He said as the pursuit for hydrocarbon energy ventures into deeper waters offshore, there is a correspondingly greater demand for a wide range of support services to facilitate the endeavor. "The hike in oil price looks set to sustain the growth in the rig-building sector, and in turn spur a boom in the support services industry," he said in a statement issued by MIMA. On the outlook for the OSV market, he said the current high level of oil price and concerns over the adequacy of energy supplies have pushed offshore activities to almost feverish levels. This have a tremendous spillover effect on the current OSV market, prompting a bullish outlook in the sector in the years ahead, barring any sudden downturn in the fundamentals of the oil and gas markets, Nazery said. He said more orders have been placed for OSV to support the development of new oilfields in far flung offshore locations. Most OSV are easily leased out, whether on long-term contracts or spot charter, amid the hive of activities in the offshore oil and gas sector, he said, adding that the chartering of such vessels is capable of fetching good margins. He said stronger emphasis on safety and environment standards for offshore exploration and production will demand support vessels such as OSV to be equipped with comprehensive safety features. "They need to be emergency-prepared with fire and pollution-fighting equipment and capabilities, among others," he added. © 2006 BERNAMA.

The port-security proposals
Legislative remedies to the Dubai ports deal currently in circulation belong to either of two categories: either to alter or kill the specific Dubai deal, or to change the way the government handles mergers and acquisitions with national-security relevance. Both warrant serious deliberations in the coming weeks. Considered properly, the debate will direct needed attention to gaps in port security. Nearly all the congressional proposals alter the transaction significantly in ways that neither Dubai Ports World nor the Bush administration anticipated. Some bar the deal outright. One bill calls for banning all foreign government-owned port transactions initiated after Oct. 1, 2005 -- which would block Dubai Ports World but grandfather Chinese and Singaporean government-owned firms currently operating on the West Coast. Another proposal calls for an American firm to handle all operations for Dubai Ports World -- which would ensure that Dubai Ports World would enjoy the economic benefits while minimizing access to sensitive data and operational information. At the least, Congress wants a stronger voice and participation in reviewing the deal. No surprise, neither the Bush administration nor Dubai Ports World likes these proposals. The Bush administration wants to give Congress more time to study the facts. Dubai Ports World, for its part, is happy to be investigated in a second review, but doesn't want to share anything with a new American firm. On CNN's "Late Edition" Monday, Dubai Ports World chief executive Mohammed Sharaf matter-of-factly said that his company has enough American partners. The alternative entails either changing the government's processes to handle these transactions or increasing spending to improve port security generally -- or both. The Committee on Foreign Investment in the United States is the target of the first change. One Senate proposal calls for the committee's chairmanship to be stripped from the Treasury Department and moved to the Department of Homeland Security on the grounds that the department can better guarantee that national security trumps economics in sensitive transactions. Other proposals are likely to mean greater congressional participation in the review process or to stiffen the committee's criteria and implementation. Another proposal creates an "office of cargo security policy," strips port security from other transportation-security areas and calls for greater spending for DHS agencies. Further scrutiny of port and maritime security are clearly necessary. Taken seriously, these proposals present a welcome opportunity to tighten port security. Over the next two months we'll see whether Congress can redeem its promises. © 2006 The Washington Times.

Safeguard outlying islands through economic activities, say minister
Kupang, E. Nusa Tenggara (ANTARA News) - Minister of Maritime Affairs and Fisheries Freddy Numberi has said the government needs to develop economic activities on outlying islands to prevent the country from losing them to other nations. "There must be economic activities on the outlying islands to dash a chance of the islands disappearing from the Unitary Republic of Indonesia," he said here on Thursday. It was not enough for the country to possess evidence of artefacts such as grave to have its rights to the islands recognized in the international community, he said. Neither was it enough to put up poles on the islands to maintain the country`s rights to the islands, he said. "In the era of globalization, poles do not serve as mere reference to possess islands but the islands must always be inhabited besides there must be economic activities and sustainable ecological conservation efforts there," he said. The three elements helped Malaysia gain Sipadan and Ligitan islands in its battle with Indonesia, he said. In the International Court of Justice, Malaysia was able to show the three elements -- development of residence, evidence of land use and environmental conservation efforts, he said. "The Sipadan and Ligitan case serves as a valuable lesson for this nation to safeguard outlying islands. Let us not repeat the bad experience," he said. © 2005 LKBN ANTARA.

WEEK 3: (12 - 18 March 2006)

DPW to give up US assets
Dubai Ports World (DPW) has relented to overwhelming pressure from US Congress and agreed to divest all operations in America to preserve the “strong relationship” between the UAE and the US. “DPW will transfer fully the US operations of P&O Ports North America to a US entity,” DPW said in a statement. The decision is based on an understanding that there will be sufficient time to complete the transfer in an orderly fashion and that it would not suffer economic loss. DPW’s offer came a day after a stunning 62-2 vote by the House Appropriations Committee in favour of an amendment to a military funding bill that would preclude DPW from operating US ports. Some Congressional critics, particularly Senate Democrats are insisting that specific details of the transfer must first be disclosed. Senator Chuck Schumer said that if DPW is in any way shareholder of the US entity to run the ports, then the offer is unacceptable. “It must be a total break,” he argued. According to CNN, a DPW attorney confirmed that a “full divestment” was planned. © Lloyd's Register - Fairplay Ltd 2006.

Indian and Korean Coast Guargds sign MOU
An MoU on maritime cooperation was signed in New Delhi today between the Coast Guards of India and Korea. The signatories of the MoU were the Director General of Coast Guard Dr. Prabhakaran Paleri and the Commissioner General of the Korean Coast Guard, Mr Lee Seung Jae. The MoU is envisages co-operation in preventing acts of transnational crime at sea such as piracy, armed robbery, maritime crimes, trafficking of arms, smuggling and illegal migration at sea and combating marine pollution. It may be recalled that the Coast Guards of India and Korea conducted their first ever joint exercise at Pusan in Korea in November last year. © Press Information Bureau, Government of India.

Indonesia-U.S. ties "Strong and Growing," State Department says
The United States and Indonesia, two of the world's largest democracies, are working together closely on regional and global issues including maritime security and counterterrorism efforts, according to a State Department fact sheet issued March 10. "Our relationship is built on the shared values of democracy, pluralism, tolerance, and respect for human rights. Indonesia is a large and important country that plays a leading role in Southeast Asia," the fact sheet says. U.S. assistance is helping Indonesia to rebuild areas affected by the December 2004 earthquake and tsunami, prevent and control avian influenza (bird flu) and support peace in Indonesia's Aceh province, according to the fact sheet. The United States has also provided the country aid in the areas of education, health and water, democracy, economic development and the environment.

(begin fact sheet)
U.S. Department of State
Fact Sheet
Washington, DC
March 10, 2006

The United States and Indonesia: A Strong and Growing Partnership. "The partnership between our two peoples is strong and is growing stronger. In all that lies ahead, in the defense of freedom, in the advance of tolerance and democracy, Indonesia will have a firm ally in the American Government. And you'll have the friendship and the respect of the American people." - President George W. Bush.

Assistance to Indonesia (Fiscal Year 06)
Education ($31.9 million), Health & Water ($33.3 million), Democracy ($36.3 million), Economic Growth ($21.9 million), Environment ($6.9 million). Other Assistance, Tsunami reconstruction ($400 million), Avian Influenza ($11 million), Peace in Aceh ($11 million). The United States and Indonesia, two of the world's largest democracies, are working together closely on regional and global issues. Our relationship is built on the shared values of democracy, pluralism, tolerance, and respect for human rights. Indonesia is a large and important country that plays a leading role in Southeast Asia.

Indonesia's Importance
- Indonesia is the largest country in Southeast Asia; its population of 240 million is greater than all other Southeast Asian countries combined.
- Indonesia is the world's largest majority-Muslim country.
- Indonesia sits alongside the straits of Malacca, one of the world's most important shipping lanes.

Indonesia's Democracy
Indonesia achieved a major milestone in its ongoing democratic transition by successfully holding its first-ever direct Presidential election in 2004. With 155 million registered voters and more than 575,000 polling stations, the election was the largest single-day election in the world.

Indonesia's Diversity
- Indonesia has more than 300 ethnic groups spread over more than 17,000 islands.
- Although more than 80% of Indonesians are Muslim, there are large numbers of Hindus, Buddhists, and Christians as well.Building a Stronger Indonesia
- The U.S. response to the December 2004 earthquake and tsunami, which killed more than 100,000 Indonesians, included emergency food assistance, relief supplies, temporary shelter, water, and sanitation for those affected. Ongoing programs are helping the region to "build back better."
- The U.S. supports Indonesia's efforts to build lasting peace in Aceh after decades of conflict.
- U.S. assistance is helping Indonesia reform its armed forces and improve its maritime security and disaster-response capabilities.
- Over half of all Indonesians live on less than two dollars a day and lack adequate health services, food, and sanitation. The U.S. Government is working with the Government of Indonesia to improve these conditions.
- The U.S. Government is helping Indonesian government and civic organizations build effective and accountable local governance, to address conflict and encourage pluralism, and to consolidate the democratic reform agenda.
- The $157 million Indonesia Education Initiative, announced by President Bush in 2003, is a cornerstone of the U.S. Government assistance program in Indonesia for 2004-2009. The program reflects a joint Indonesia-U.S commitment to revitalize education for the next generation of Indonesia's leaders.
Building a Stronger Region
- The U.S. supports Indonesia's leading role in ASEAN, which provides a framework for regional cooperation on political, economic, and social issues.
- The U.S. and Indonesia cooperate in the fight against terrorism and in promoting maritime security.

(end fact sheet)
© Bureau of International Information Programs, U.S. Department of State.

Indonesian and US navies conduct counter-terrorism exercise
Manado (North Sulawesi Province) - The Indonesian Navy and its U.S. counterpart are conducting a joint exercise on Small Craft Counter Terrorism Maritime Interdiction Techniques on Sulawesi waters from March 12 to 18, 2006. The joint exercise included theory, discussions and field maneuver, First Admiral M Eddy Moerdijanto, commander of the Bitung naval fleet, said here on Tuesday. Both countries` navies shared experiences in dealing with terrorism and other maritime crimes such as piracy and poaching, Moerdijanto said. The U.S. Navy sent two MK-V special operation crafts with 20 personnel on board in the exercise. Meanwhile, the Indonesian Navy involved four warships, namely Patola, Siau, Patkamla and Labuhan, with a total 175 crew members. Moerdijanto hoped that one day Indonesia would own MK-V craft with modern equipment to guard Indonesian waters. Malaysia has owned similar craft to patrol the Malacca Strait, he added. According to the Indonesian admiral, the joint exercise was a reflection of the strengthening bilateral relations between Indonesia and the United States of America. "The Indonesian Government and the United States believe that we need to intensify cooperation in the improvement of professional skills," he said. Last week, both navies carried out a similar joint exercise on Tarakan waters, Kalimantan, to share experiences in dealing with various crimes on seas, according to a coordinator of the joint exercise, Lt. Col. M. Faisal. © 2005 LKBN ANTARA.

Malacca Straits report no crimes since last October
Kuala Lumpur - No crimes have been reported in the Malacca Straits since last October, an officer of the Malaysian Maritime Enforcement Coordination Center (MECC) said Tuesday. Up to September 2005, only 11 maritime crimes occurred, down from 37 cases for the whole year of 2004, said MECC Director AbdulHadi A.Rashid. The zero crime record for the past five months could be attributed to concerted efforts taken by various maritime enforcement agencies, Abdul said. "Many who were earlier skeptical on our ability now see us being better prepared. We are working in a more integrated and well planned manner," Abdul was quoted as saying by the Bernama news agency. He added the International Maritime Bureau in its annual report had recognized Malaysia's commitment in tackling crimes at the straits. One of the busiest waterways in the world, the 900-kilometer-long straits had been plagued by piracy and ship hijacking for many years. Since last year, the littoral states of Malaysia, Singapore and Indonesia have strengthened patrols along the straits. © Xinhua News Agency.

Navy to test missile by Christna Koh
Lumut - Malaysia will be the first country in the region to test-launch the Sea Skua guided missile. The test launch would take place in the Straits of Malacca on Thursday, Royal Malaysian Navy chief Laksamana Datuk Ilyas Din said. South Korea is the nearest country known to have purchased the missile. The air-to-surface missile, renowned for its precision, which Malaysia acquired from Britain following a contract signed between the two countries in 2001, is capable of sinking a ship. However, Laksamana Ilyas declined to disclose the exact location of the test launch and the number of missiles acquired by the navy. "We have a large enough number," he told reporters here Monday after pinning honorary wings on four navy trainees who qualified for flight duty. The test target will be a barge at sea. Laksamana Ilyas urged all fishermen and tourist boats to stay away from a radius of 16 nautical miles from Kuala Beruas in the Straits of Malacca. "We have already informed the fishermen's associations and other agencies. We will take all safety precautions and clear the area to ensure no one gets hurt," he said. © 1995-2005 Star Publications (Malaysia) Bhd.

Navy-Coast Guard National Fleet Policy updated by Gordon I. Peterson
Washington - Chief of Naval Operations Adm. Mike Mullen and Commandant of the Coast Guard Adm. Thomas H. Collins jointly approved a new National Fleet policy statement in early March aimed at strengthening Navy-Coast Guard cooperation and tailored operational integration of each service’s multimission platforms, infrastructure and personnel. Building on more than two centuries of close collaboration and joint operations in peace and war, this firm commitment to shared purpose directly supports the new National Strategy for Maritime Security approved by President Bush this past September. “Security of the maritime domain can be accomplished only by seamlessly employing all instruments of national power in a fully coordinated manner,” the strategy states. The National Fleet, which originated in 1998, reflects an agreement between the Navy and the Coast Guard to plan, acquire, and maintain forces that support and complement each service’s roles and missions. With this latest update, the services will be able to share assets, providing unique capabilities for expeditionary warfare and maritime homeland defense and security missions. “While we remain separate services, we recognize that full cooperation and integration of our non-redundant and complementary capabilities must be achieved,” Mullen and Collins said. “This continues to ensure the highest level of maritime capabilities and readiness for the nation’s security and investment.” “A joint and interoperable maritime force is needed to establish the numerical sufficiency required for effective global operations and to effectively foster and leverage regional international partnerships in order to achieve global maritime domain awareness and maritime transportation security in the era of globalization,” they said. The Navy-Coast Guard National Fleet has three main attributes. First, it is composed of ships, boats, aircraft, and shore command-and-control nodes that are affordable, adaptable, interoperable, and possess complementary capabilities. Secondly, these forces will be designed, wherever possible, around common command, control, and communications equipment and operational, weapon and engineering systems, and include coordinated operational planning, procurement, training, and logistics. Lastly, the National Fleet will be capable of supporting the broad spectrum of U.S. national security requirements — from power projection to defense of the homeland. “As the Navy develops shallow water and riverine capabilities, we will seek increasing synergies with the Coast Guard, at home and abroad, exploring complementary design, acquisition, operations and training initiatives,” Mullen testified before the House of Representative’s Armed Services Committee March 3. He described the new National Strategy for Maritime Security as a “very critical and important document,” and said he and Collins will build on their strong relationship to achieve the level of maritime domain awareness they think vital for the future. The Coast Guard agrees. “It is not narrowly constructed as a national counterterrorism plan; it is an all-threat plan including counter-drugs, migrant issues, fishery enforcement, and other security areas — a systems view of the maritime," Collins said recently. "There is a lot of work to be done to give meaning and add meat to those plans, and the Navy and the Coast Guard are engaged in doing that." The Navy’s contribution to the National Fleet consists of multimission ships, submarines and aircraft, as well as Naval Coastal Warfare, Naval Special Warfare, and C4ISR assets designed for the full spectrum of naval operations, from peacetime engagement to global war. The Coast Guard’s contribution is its statutory authorities, multimission cutters, boats, aircraft and C4SIR, as well as law enforcement and environmental response teams. This contribution, designed for the full spectrum of Coast Guard missions, includes maritime security operations, counterterrorism-crisis response, and filling the joint combatant commanders’ theater plans calling for general-purpose warships. “Our services have a record of working together that goes back a long way,” Mullen said. “Along with the Marine Corps, our relationship with the Coast Guard is the most critical relationship we can possibly have when it comes to securing the maritime domain.” © Navy News Stand.

Philippines says plans to tighten southern border by Manny Mogato
Manila - The Philippines plans to force all vessels to use designated sea lanes along the borders with Malaysia and Indonesia to deny Islamic militants easy access to its restive Muslim areas, the defence secretary said on Monday. Avelino Cruz said the Australian government was also helping Manila establish a coastal watch system in the southern Philippines to improve border controls around its 7,100 islands. "Our Philippine Navy and Coast Guard ships would board and inspect all vessels and watercraft that would be passing outside a delineated maritime route," Cruz told a briefing for foreign journalists. "We would be putting up a system to monitor all ships in the area." At more than 36,000 km (22,300 miles) long, the Philippine coastline is seen as a weak link in the Asian war on terror with militants exploiting a multitude of private inlets and the navy's lack of equipment to evade capture. Cruz said President Gloria Macapagal Arroyo had discussed the counter-terrorism plan with the leaders of Malaysia and Indonesia leaders during a summit meeting last December in Kuala Lumpur. The three countries were also planning to step up maritime security along the lines implemented by Singapore, Malaysia, Indonesia and the United States in the narrow Malacca Straits. Analysts and security officials say Indonesian militants belonging to the regional Jemaah Islamiah (JI) group have taken advantage of the porous southern border to travel virtually unchecked between Indonesia and the Philippines. JI is believed to have used Mindanao as a training base and a refuge where it has forged informal alliances with Philippine Islamic separatist rebels and radical militants. Two key suspects in the 2002 bombings on the Indonesian resort island of Bali -- Umar Patek and Dulmatin -- were believed to be hiding in Mindanao since 2003, coddled by a radical faction of the Moro Islamic Liberation Front (MILF). The Philippines and the MILF, the largest Muslim rebel group on Mindanao island, have been negotiating to end nearly 40 years of rebellion that has killed more than 120,000 people and delayed growth in the resource-rich troubled south.

Australian Support
Cruz said the Australian government had given equipment and training to local military units, including 30 high speed river boats to penetrate marshlands on Mindanao island. Part of the integrated coast watch system was the setting up of data centres in the southern ports of Davao and Zamboanga to coordinate operations of various state agencies involved in border controls and management. Radar stations would also be built on two areas on the Tawi-tawi chain of islands, the country's southernmost areas, to track movements of vessels entering and leaving the country. "As soon as we get the money from Congress, we would bid out the equipment for the coast watch system," Cruz said, adding the border management system would be ready within the year. He said the Philippines needed long-range patrol aircraft, modern radar systems and a fleet of faster ships to improve its border controls. © 2006 Reuters.

RI must make presence felt on islands by Meidyatama Suryodiningrat
Possession is nine-tenths of the law. That was the important lesson learned when the International Court of Justice found Malaysia's claim over the Sipadan and Ligitan Islands more credible than Indonesia's.Though the country still has territorial claims to over 17,500 islands, this high-profile loss was a very bitter pill, and the effects still linger today. It is encouraging that the government has not forgotten this lesson by recognizing that the country's first line of defense in securing dozens of outer islands is not the Indonesian Military (TNI), but migration and development. Based on official records from the Home Ministry there are officially 17,504 islands spread across the Indonesian archipelago. This data represents a net loss of four islands since 2002 -- two islands to Malaysia (Sipadan and Ligitan), and two to Timor Leste (Kambing and Yako Islands). If the present government remains oblivious and approaches the issue with the same imprudence as its successors, the consequence may be more than the loss of relatively insignificant islands. There are 88 islets straddling borders that Indonesia shares with 10 countries -- Australia, India, Malaysia, Palau, Papua New Guinea, the Philippines, Singapore, Thailand, Timor Leste and Vietnam. Only half of those 88 are inhabited. Though Navy patrols and history may be on Indonesia's side, ultimately it is the level of "investment" put into these islands that will be the determinant of ownership. Neighbors, though they are friends, cannot be entirely trusted. It is encouraging that President Susilo Bambang Yudhoyono emphasized a commitment to populate these islands through a transmigration program, which began three years ago and is not supposed to copy the programs of former administrations, but alas this seems to have been largely neglected. The President himself last month committed Rp 900 billion (US$94.7 billion) to a special fund for a major development drive for outer islands in border areas. Though these islands are small (0.02 to 200 square kilometers), their possession guarantees rights to the maritime resources in the exclusive economic zone. Furthermore, further losses of islands threatens to redraw Indonesia's archipelagic territorial borders. More important for Yudhoyono is that it would be a political bombshell if his administration was even perceived to be less than assertive in ensuring territorial integrity. This was the reason he flatly rejected, during a meeting with Prime Minister Abdullah Badawi last month, the PM's offer to jointly develop the Ambalat area, which Malaysia claimed shortly after the ICJ verdict. Apart from uninhabited outer islands, time is running out in naming over 9,000 unnamed islands. Based on the United Nations Convention on the Law of the Sea (UNCLOS) it is required to properly register these islands. An UNCLOS conference is due to be held in 2009, which serves as a deadline for Indonesia to register these islands. A special inter-departmental team was established in 2004, however it is questionable whether they can thoroughly complete this daunting task. Another avenue being pursued that may come to fruition is through diplomatic/security treaties to ensure the overall territorial integrity of the republic. Diplomats are putting the final touches on a security agreement with Australia, which guarantees that it respects Indonesia's territorial expanse and rejects secessionist movements. Diplomatic rhetoric may change with time, but at the very least, there is a de jure insurance on paper that will help settle fears of breakaway movements in the eastern part of the archipelago. Indonesia is like a lush unkept backyard. We take no notice of it until our neighbor's kids start climbing the fence to pick the ripened fruit. When it is too late and the trees are all bare, then we get angry and start paying attention. © The Jakarta Post.

Shipowners expect good times to continue by Kang Siew Li
Malaysia's shipping industry is expected to continue growing this year and may turn out to be another exceptional year for shipowners, says International Shipowners' Association of Malaysia (ISOA). Chairman Datuk Abdul Latif Abdullah said he is confident shipping rates will hold up and the good times will continue, although most analysts and observers predict otherwise as they warned of a global oversupply of ships. "All of the shipping sectors, be it in the liner, bulk or tanker trade, did well in 2005, except towards the end when rates started to fall due to the year-end holidays," he told Business Times in an interview. But rates have picked up since January this year and now stand 10 per cent above the levels in December last year. "If the prevailing rates are any indication, we believe that the market will continue to hold steady this year. Indeed, we would like to think that we're going to have another record year," he said. Abdul Latif, who is also Mitsui OSK Lines (M) Sdn Bhd executive director, is particularly bullish on the prospects for the liner business. "Take Mitsui OSK Lines, for example. For a long time, its liner business has been dragging down profitability of other divisions. But in the last few years, it has become a main revenue contributor to the group," he said. He believes the liner business will continue to grow at a solid pace in 2006 and be a major contributor to Mitsui OSK Lines. "Worldwide, the liner business is a continuously growing sector. This is reflected in the container volume moving through ports every year," he added. On the recent 30 sen rise in fuel prices, Abdul Latif said while the quantum of the increase was unexpected, he agreed with the Government's decision. He hoped that the Government will allocate some of the estimated RM4.4 billion savings this year from fuel subsidy reduction to improve the maritime infrastructure in the country. "This is one area where we can generate revenue as about 85 per cent of the country's trade is carried by sea," he said. Meanwhile, Abdul Latif said he was against the European Commission's (EC) proposal to abolish liner shipping conferences which allow shipowners to fix prices and regulate capacity jointly. "This conference system has been in existence for over 150 years and on balance has served the liner shipping industry well. "Thus, I have reservation about the move unless they (EC) can find a better way of regulating the industry," he said, citing the Far Eastern Freight Conference and the Transpacific Westbound Rate Agreement as effective liner conferences. The EC was reported as saying that the abolition of the system will benefit European Union (EU) exporters by lowering transport prices, which in turn is expected to enhance the competitiveness of EU industry. Service quality and innovation are also likely to improve. Abdul Latif also described as "ridiculous" the recent decision by the Joint War Committee (JWC) of the Lloyd's Market Association to ask insurers to charge higher war risk premiums for ships transiting the Malacca straits. "War risk is when you go to conflict areas like Iraq, but not the Malacca straits. "The only risk is piracy. What we should do is to beef up our security measures in order to combat piracy, which is a nuisance. "As such, the littoral states such as Indonesia, Malaysia, Singapore and the Philippines must work together to to minimise piracy," he said. © The New Straits Times Press (Malaysia) Berhad.

Strait of Melaka much safer now, says maritime enforcement chief
Port Klang - The Strait of Melaka, among the world's busiest shipping route, has been free of crime since last October and is the testimony that the waterway is now safe. The Director of the Maritime Enforcement Coordination Centre (MECC) Admiral Abdul Hadi A. Rashid said only 11 maritime crimes occurred up to September 2005 compared to 37 cases for the whole of 2004. Abdul Hadi attributed the crime free scenario for the last five months at the 900 kilometer long strait as the outcome of concerted enforcement efforts taken by various maritime enforcement agencies. "Many who were earlier sceptical on our ability now see us being better prepared. We are working in a more integrated and well planned manner," he told Bernama, here Tuesday. He admitted to the fact that up to last year MECC faced a major challenge in changing the perception on the Strait of Melaka's safety record. But the challenge prompted all relevant agencies to enhance surveillance and operations to boost security at the strait. About 50,000 ships pass the narrow Strait of Melaka every year. Since early 2000 the strait was plagued by piracy and ship hijackings that prompted international attention. Abdul Hadi said the International Maritime Bureau in its annual report recognised Malaysia's commitment in tackling crimes at the strait. Meanwhile, Abdul Hadi said during "Tambak" operations between Tanjung Piai and Pengerang in Johor three ships were compounded RM5,000 each for digging sand without permit at waters near Skudai. He said during the operations from 1 to 6 March no cases of piracy or marine pollution was reported on the high risk stretch. On the ‘Samudera Gagah’ operations at the strait between Pulau Jarak in Perak and Tanjung Tuan in Negeri Sembilan that began on March 7 and ended today, he said there were two cases of Indonesian fishermen fishing in our waters and seven cases of merchant ships that failed to comply with the Merchant Shipping Ordinance 1952. © 2006 BERNAMA.

Stronger rules to govern dumping of wastes at sea
London - A new and more protective set of international rules governing the dumping of wastes at sea will take effect March 24. Based on the precautionary principle, the new rules also include the principle that the polluter must pay for damages. For the first time, a maritime treaty will govern storage of wastes in the seabed, as well as the abandonment, or toppling, of offshore installations. The new rules are defined by the 1996 Protocol to the London Convention, formally known as the Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter, 1972. The 1996 Protocol takes effect 30 days after its ratification by Mexico, the 26th country to do so. The Ambassador of Mexico to the United Kingdom Juan José Bremer, deposited his country's instrument of ratification at International Maritime Organization (IMO) Headquarters in London on February 22. While the United States is a Party to the London Convention, it has not ratified the 1996 Protocol. The United Kingdom is a Party to both agreements as are New Zealand, Australia, Canada, Egypt, France, Germany, Norway, Spain and South Africa, among others. The 1996 Protocol prohibits dumping at sea, except for materials on an approved list. This contrasts with the 1972 Convention which permitted dumping of wastes at sea, except for those materials on a banned list. Ocean dumping of sewage sludge like this will still be allowed under the new rules. IMO Secretary-General Efthimios Mitropoulos welcomed Mexico's ratification by emphasizing that for the first time the precautionary principle will be applied to marine pollution. "Now that the requisite number of ratifications has been received, the 1996 Protocol will enter into force, thus achieving another major milestone for the marine environment, Mitropoulos said. "The application of the Protocol's precautionary approach will have a significant impact on the protection of the marine environment from dumping at sea." The 1996 Protocol gradually will replace the 1972 Convention, to which 84 governments are currently Parties. This means, in practice, that both agreements will be in force in parallel for some time, but the momentum will shift to the Protocol as more and more Parties ratify it. The Parties to the 1996 Protocol will be invited to attend their first meeting under the Protocol from October 30 to November 3, in conjunction with the 28th Consultative Meeting of the Parties to the London Convention, planned in the same week. One of the first key issues for discussion under the 1996 Protocol will be a review of the compatibility of carbon dioxide capture and storage in sub-seabed geological structures, as part of a suite of measures to tackle the challenge of climate change and ocean acidification. Carbon dioxide is the most prevalent greenhouse gas linked to global warming. To get it out of the atmosphere, where it traps the Sun's heat close to the planet, scientists have been working on ways to sequester the gas underground or in geological structures under the ocean floor. The 1996 Protocol reflects a more modern and comprehensive agreement on protecting the marine environment from dumping activities than the original 1972 Convention and reflects the broader aims to protect the environment in general, says Mitropoulos. The protocol introduces the precautionary approach, requiring that "appropriate preventative measures are taken when there is reason to believe that wastes or other matter introduced into the marine environment are likely to cause harm even when there is no conclusive evidence to prove a causal relation between inputs and their effects." The protocol enshrines the idea that "the polluter should, in principle, bear the cost of pollution," and it emphasizes that Parties should ensure that the protocol should not result in pollution being transferred from one part of the environment to another. The 1972 Convention permits dumping to be carried out provided certain conditions are met and includes a "black list" of materials that may not be dumped at all. The 1996 Protocol is more restrictive. It states that the Parties "shall prohibit the dumping of any wastes or other matter with the exception of those listed." Under the protocol, the only materials that may be dumped are:
• Dredged material
• Sewage sludge
• Fish waste, or material resulting from industrial fish processing operations
• Vessels and platforms or other man-made structures at sea
• Inert, inorganic geological material
• Organic material of natural origin
• Bulky items primarily comprising iron, steel, concrete and similar harmless materials, for which the concern is physical impact, and limited to those circumstances where such wastes are generated at locations, such as small islands with isolated communities, having no practicable access to disposal options other than dumping.
The incineration of wastes at sea was initially permitted under the 1972 London Convention, but this practice was ended in 1991 - incineration of wastes is specifically prohibited by the 1996 Protocol. Incineration at sea of industrial waste and sewage sludge had already been prohibited under the 1993 amendments to the London Convention. Although the internal waters of a Party are excluded from the dumping provisions under both the Convention and Protocol, Parties to the Protocol have the option to apply its rules to their internal waters if they wish. The protocol contains better linkages with other international environmental agreements which have been developed since 1972, for instance, through its ban on export of wastes for dumping purposes in relation to the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal. The protocol places more emphasis on compliance than the London Convention, but it includes a transitional period to help new Parties towards gradually achieving full compliance over a maximum period of five years. © Environment News Service (ENS) 2006.

London Convention website: http://www.londonconvention.org/
Download the text of the 1972 Convention and the 1996 Protocol at:
http://www.londonconvention.org/Documents.htm#Texts_of_the_London_Convention
How to report dumping incident at sea: http://www.londonconvention.org/Incident_reporting_forms.htm.


WEEK 4: (19 - 25 March 2006)

China, Korea keen to preserve security in Malacca Strait
Putrajaya - China and Korea are interested to be major players in preserving security in the Strait of Malacca, according to Malaysian Maritime Enforcement Agency (MMEA) Director-General Vice-Admiral Datuk Mohammad Nik. Mohammad said both countries had expressed their intention as they perceived the strait as an important route for international shipping and line of communication. "The strait has two SLOCs. One is the Sea Line of Communication and the other is Sea Line of Commerce and they value it and want it to be safe from maritime crime," he told reporters during a press conference after the Second Head of Coast Guard Agencies Meeting, Asia, here Wednesday. He said usually countries which were interested would invest in the form of capacity building, ships, grants, communication system and other navigation aide. Currently, Japan is the largest contributor in protecting the security of the busiest strait in the world with the latest handing over of a ship which is expected to arrive from Tokyo early next month. On the whole, he said the meeting was a success as the delegations were satisfied especially with the 13 resolutions agreed upon by all 17 Asian countries at the end of the conference. Among the framework presented were measures in safeguarding piracy, robbery at sea, disaster management, transnational crime and maritime terrorism. The next meeting is scheduled to be held in Singapore next year. On the future plan for MMEA, Mohammad said the agency planned to set up its own training centre and academy in the near future in an effort to provide proper training for its staff. He said the agency, which was officially launched Tuesday, was waiting for allocation from the government under the Ninth Malaysia Plan to set up the centre. He added that the allocation under Ninth Malaysia Plan would also be used to upgrade MMEA's infrastructure and equipment, and expand its asset. © 2006 BERNAMA.

Coast Guard meeting to find more ways to act against maritime crime
Putrajaya - The two-day 2nd Meeting of the Heads of Coast Guard Agencies Asia beginning here Tuesday will offer a good opportunity for networking among maritime enforcement agencies in this region, says the director-general of the Malaysian Maritime Enforcement Agency (MMEA), Vice Admiral Datuk Mohammad bin Nik. "It would be a good platform to discuss various issues of common concern such as maritime security and safety," he said, adding that the participants would be able to deliberate on unlawful acts at sea and how to effect initiatives against piracy and other maritime crimes. Themed "Towards Regional Co-operation in Maritime Security and Safety", the meeting will be attended by the heads and senior officers from Coast Guard agencies from 17 countries. Representatives from the International Maritime Organisation (IMO) and International Maritime Bureau (IMB) will also attend. "At the end of the day, we aspire to achieve a certain resolution to the common maritime problems we are facing today such as piracy, illegal fishing activities and transnational crimes such as maritime terrorism," said Mohammad in an interview. To achieve this, the countries concerned would have to promote greater co-operation, share ideas and identify practical measures in addressing maritime security issues, said Mohammad, who added that since the MMEA began operations in November 2005, piracy in the Strait of Melaka had been drastically reduced in view of the agency's visible presence. Mohammad said the meeting would also discuss issues regarding disaster, relief as well as search and rescue. The MMEA, also known as the Malaysian Coast Guard, currently has 1,200 officers and men operating from five maritime regions in Langkawi, Johor Baharu, Kuantan, Kuching and Kota Kinabalu. Deputy Prime Minister Datuk Seri Najib Tun Razak will officiate at the launch of the MMEA at Port Klang on Tuesday. The tasks of the MMEA will be to maintain law and order; preserve the peace, safety and security; prevent and detect crime; apprehend and prosecute offenders; collect security intelligence; and conduct search and rescue across 600,000 sq km of the Malaysian Maritime Zone. © 2006 BERNAMA.

Exercises with Indonesia end
Jakarta - The Navy and Indonesia’s seaborne special forces Monday wrapped up a joint exercise aimed at halting the movement of terrorists into the Sulawesi Sea, military officials said. The two navies practiced maritime interdiction using two Navy vessels, a number of Indonesian patrol ships and troops from Indonesia’s elite naval special warfare unit, known as KOPASKA, the U.S. Embassy in Jakarta said in a statement. The two-week exercise was designed to help personnel from Indonesia’s nearby Tarakan and Bitung Naval bases be “more prepared and capable of facing terrorist actions in or through the (Sulawesi) Sea” from neighboring Malaysia and the Philippines, said Indonesian Lt. Col. M. Faisal, chief of KOPASKA at the Eastern Fleet Command. In the past, the Sulawesi Sea has been a hotbed of illegal weapons smuggling. Muslim militants are also blamed for a long-running campaign of terror against Christians on Sulawesi island. Lt. Col. K. Comer, the chief of the Office for Defense Cooperation at the U.S. Embassy, said the naval exercises were valuable training that would “increase mutual cooperation between our two forces.” Crews practiced such skills as navigation and command and control. The American and Indonesian militaries have enjoyed close cooperation, especially in the areas of disaster relief and combating terrorism. In January, the U.S. Pacific Command donated an $11 million Naval Fleet Hospital to the Indonesian government to increase the disaster relief capability of the Indonesian military. © 2006 The Associated Press.

India, China commit to trade agreement
INDIA and China today are moving towards a regional trade deal and an investment protection agreement to enhance bilateral trade to $50Bn by 2010. The Asian giants are to set up task forces related to the World Trade Organization, non-tariff barriers, agriculture and reconciliation of trade. Bilateral trade is expected to cross $20Bn by 2007, from the current $15Bn, currently growing at 30-40% a year. Indian commerce minister Kamal Nath and his Chinese counterpart Bo Xilai expressed their commitment to building up the trade across the border. Nath said the countries would set up a high-profile group that would look into broad contours of a regional trade pact. They are also setting up a forum of chief executives to facilitate business relationships. © Lloyd's Register - Fairplay Ltd 2006

Indonesia's $280Bn maritime legacy
Indonesia's failure to develop a national merchant fleet has cost the country $280Bn over the last 20 years, a new study has found. The economic planning ministry, Bappenas, has cited the domination of foreign ships in Indonesia’s domestic and international trade as the reason for the heavy pay-out. “We have to pay around Rp14Bn ($140M) a year to foreign ships,” said maritime official Sarwono Kusumaadmaja. Bappenas minister Paskah Suzetta estimates the economic loss at $1Bn a year. “It’s devastating,” he told local reporters. The deregulation of the economy in 1988 following advice from the World Bank resulted in the government losing interest in reserving carriage of coastal cargo for national flag ships. Kusumaadmaja, a former maritime minister, has criticised what he calls “excessive deregulation.” Indonesia’s president, Susilo Bambang Yudhoyono, has issued a presidential instruction reserving domestic cargo shipments to Indonesian vessels. Parliament is debating a new draft shipping law that would include this provision. © Lloyd's Register - Fairplay Ltd 2006.

Kudat marine park to serve as corridor
Kudat - Tourism, Culture and Environment Minister Tan Sri Chong Kah Kiat regretted the depletion of marine resources resulting from indiscriminate activities in coastal areas. These include stone and sand dredging along coastal areas, fishing with cyanide and explosives and improper land reclamation works. Chong, who is also Deputy Chief Minister, pointed out that tapping marine resources such as fishing and aquaculture is important to the State economy, especially in Kudat district. His addressed was delivered by Assistant Tourism, Culture and Environment Minister Datuk Karim Bujang, while opening a workshop detailing a roadmap of the proposed Tun Mustapha Marine Park at the Marudu Kudat Golf and Marina Resort here, Tuesday. According to him, the State Cabinet approved the establishment of the park during a meeting on March 5 through an unanimous decision. The proposed Tun Mustapha Marine Park covers a total area of 1,028,630 hectares, stretching to the Malaysia-Philippine maritime border involving some 50 islands off Kudat, Kota Marudu and Pitas. The park, to be managed by Sabah Parks, will also serve as a corridor for a safe passage for endangered marine species, such as whales, dolphins and dugong, as well as turtles. Furthermore, the proposed park area is rich with many marine organisms, apart from being a critical habitat for corals, mangrove swamps and seaweed, Chong said. In this respect, the area should be well preserved and conserved for the future generations, he added. He was confident that Sabah Parks would handle the area well, as it has been doing with Kinabalu Park, Tungku Abdul Rahman Marine Park, Pulau Tiga Park, Tun Sakaran Park, Crocker Range Park, Tawau Hill Park and Sipadan Island. The workshop, from March 20 to 22, involved 67 participants representing the various departments under the Ministry, Kudat, Kota Marudu and Pitas district offices, Lands and Surveys Department, Fisheries Department, Sabah Museum, Evironmental Protection Department, Forestry Department, Wildlife Department and Marine Department. Pacos Trust, Sabah Society, Malaysian Nature Society and UMS are also being represented. © Daily Express, Sabah, Malaysia.

MMEA the key to safeguarding Malaysia's maritime zone
Port Klang - The establishment of the Malaysian Maritime Enforcement Agency (MMEA) is the answer to Malaysia's need for a more effective management of the vast area under its maritime zone, MMEA Director-General Vice-Admiral Datuk Muhammad Nik said Tuesday. "As a maritime country, Malaysia needs to have a maritime zone management system that is encompassing and effective," he said at the agency's official launch by Deputy Prime Minister and Defence Minister Datuk Seri Najib Tun Razak at Northport here. He said the government's decision to form the MMEA showed its commitment in ensuring safer Malaysian waters which are famous for their international shipping route. Present were Selangor Menteri Besar Datuk Seri Dr Mohamed Khir Toyo, Defence Forces Chief Tan Sri Mohamed Anwar Mohamed Nor and delegates attending the second meeting of heads of the Coast Guard here. Muhammad said the MMEA had been operating in the Melaka Strait since three month ago and had beefed up security and reduced breach of maritime laws. "Now our fishermen are more confident to go out to sea," he said. The MMEA, which started operation on Nov 30 last year, currently has 1,200 personnel from diversified backgrounds, including from the police and customs and fisheries departments. Muhamad said the MMEA, which also acts as the Malaysian coast guard, was tasked with maintaining law and order and coordinating search and rescue operations in the Malaysian maritime zone, which covers over 600,000 sq km. Among the recent successes of the agency was a marked drop in the incidence of piracy, illegal fishing and smuggling of timber and diesel in the Melaka Strait. © 2006 BERNAMA.

Make sure tourism doesn’t kill islandby Cheryl Rita Kaur
Your report, “Tourism hurting Redang corals, “ (The Star, March 13), has highlighted the latest issues and some of the problems faced by Pulau Redang. I welcome the project of sinking 70 reef balls into the sea near the island undertaken by the Rotary Club of Kuala Terengganu and also the state government’s plan to sink 1,000 reef balls by the end of this year in the waters off the island. The fragile coral reef ecosystem is now one of the most vulnerable resources on this island. Coral reefs in Redang are of great economic, ecological and social importance to the people. However, problems such as pollution, siltation and inappropriate tourism could threaten them. Thus, these restoration actions are definitely needed to ensure the continued survival of our reefs and the associated marine life. The main environmental problems in the marine park are caused by the rapid increase in number of tourists. For example, the number of tourists had increased drastically from about 700 people in 1990 to about 91,000 in 2004. Lack of awareness among the visitors and coastal development activities have been contributing to coral degradation to some extent. Tourists pose a threat to marine ecosystems through activities such as snorkelling and diving as a result of poor buoyancy skills and snorkelling practices. Boat operators cause problems to the environment because of poor boating practices, especially during peak seasons. Chalet and hotel operators damage the marine ecosystem through the discharge of waste water into the environment. Furthermore, excessive coastal development activities can cause sedimentation problems that destroy the corals. Attention should be given to the infrastructure planning, development and management of the tourist industry to ensure the marine ecosystem and marine resources are not adversely affected in this attractive island. © Star Publications (Malaysia) Bhd.

Malaysia: no evidence of terrorism threat in Malacca Strait
Northport - Malaysia's deputy prime minister said Tuesday there is no evident threat of terrorism in the Strait of Malacca as he launched a new coast guard agency to boost security in the pirate-infested waterway. The new coast guard, the Malaysian Maritime Enforcement Agency, or MMEA, began operations in November but was officially inaugurated Tuesday by Deputy Prime Minister Najib Razak. In a speech, Najib urged international shipping insurance firm Lloyds to review its decision to put the Strait of Malacca on its list of war-risk areas. Lloyds' decision has increased insurance premiums for the estimated 50,000 vessels navigating the strait every year, carrying half the world's oil and a quarter of its sea-borne goods. The 900-kilometer (550-mile) strait, which borders Malaysia, Singapore and Indonesia, is the main sea link between East Asia and the Middle East and Europe. Najib said MMEA's creation sends a clear signal that the government is serious about guarding the crucial waterway in response to global concerns about piracy and terrorism. But so far maritime crimes in the strait have consisted of sea robbery and piracy, Najib said. "There is no evidence to suggest that the incidents are connected to global or regional terrorism," he said. "We hope that international insurance companies will reconsider their decision to classify the Strait of Malacca as a war zone," he said. "This area is thus far safe from any threats in the form of international terrorism." Washington and its allies fear militants in Southeast Asia could hijack a ship and use it as a sea-borne bomb. Najib said maritime patrols, law enforcement and security along Malaysia's 4,500-kilometer (2,800-mile) coastline would become more focused and efficient as the MMEA integrates operations previously conducted by 11 different agencies. He said piracy and sea robberies in Malaysia's part of the strait had fallen sharply, with only one reported case in June-December 2005, compared to 18 in the same period a year earlier. Overall, pirate attacks in the strait fell to 12 last year from 38 in 2004, according to the International Maritime Bureau, which monitors such incidents. Separately, MMEA director-general Vice Admiral Mohammad Nik said since November the agency has detained local and foreign boats involved in illegal fishing and in smuggling logs and diesel fuel. He did not say how many. The agency now has 1,200 personnel -- 30 percent of its targeted 4,000 -- and plans to build up its fleet to around 100 vessels, the national Bernama news agency quoted Mohammad as saying. The MMEA's launch coincided with a two-day Asian coast guard meeting that started Tuesday. © 2006 Associated Press.

Malaysia urges insurance companies to remove Malacca Strait from security blacklist
Port Klang - Malaysia urged insurance companies to remove the Malacca Strait from a list of dangerous waterways as it launched a new coast guard to boost security in the area. "We hope that the international insurance companies will reconsider their decision to classify the Straits of Malacca as a war zone," Deputy Prime Minister Najib Razak said. "The statistics do not bear that fact. This area is safe from any global terrorism," Najib said at the launch, which came as Malaysia hosts a two-day meeting of regional heads of coast guard agencies. "All this while the only incidents are sea robbery and piracy. There is no evidence to suggest that the incidents are connected to regional or global terrorism." Najib, also defense minister, said the number of piracy cases in the vulnerable strait has dropped to one between June and December last year, compared to 18 cases in the same period in 2004. There have been no cases of piracy in the strait so far this year, he added. The Lloyd's Market Association's Joint War Committee in July last year added the strait to a list of 20 areas worldwide -- alongside Iraq, Lebanon and Nigeria -- that it deemed security threats to shipping. The classification by the LMA, a body that advises members of insurer Lloyd's of London, could result in some underwriters imposing additional premiums on ships plying the strait. The launch of the Malaysian Maritime Enforcement Agency coast guard unit at Port Klang, Malaysia's biggest port located west of the capital, was attended by coast guard agencies of 16 Asian countries, the US and Australia. Malaysia last November set up the coast guard at an initial cost of 69 mln rgt to boost security in the strait, which separates the Indonesian island of Sumatra and peninsular Malaysia. © 2006 Forex Television, Inc.

Maritime conference to discuss impact of geopolitics
The 4th Asia Maritime & Logistics Conference & Exhibition 2006, organised by the Malaysian Shipowners’ Association, will be held from September 11 to 12 at the Kuala Lumpur Convention Centre. Planned as a world-class event, the conference has lined up international personalities who are expected to lead off a discussion on the growing influence of geopolitics in re-shaping demand and supply in the marketplace. The two-day conference managed by PortsWorld will include an international maritime exhibition and will focus on key industry cross-cutting issues, including managing cross cultures in businesses. “The Asia Maritime & Logistics Conference has established itself as a major international maritime event. Previously, it had attracted participants and distinguished speakers from across the world,” said the chairman of the steering committee for the conference, Abdul Aziz Meor Ngah. © The New Straits Times Press (Malaysia) Berhad.

Maritime guardians strive to plug holes in crackdown on pirates
Kuala Lumpur - Pirates, smugglers and other criminals who infest Asia's waters are taking advantage of weaknesses in regional law enforcement and a lack of cross-border cooperation, officials said Wednesday. Maritime security chiefs from 17 countries were wrapping up a two-day meeting in Malaysia with warnings that transnational crime could escalate unless authorities trust each other, exchange intelligence and share expertise and equipment whenever possible. "We may wonder why there are still gaps in the way we cooperate with each other, but it is these gaps that are ruthlessly exploited by the criminal underworld," Au Hok-lam, Hong Kong's regional marine police commander, said in a presentation at the conference. Tackling maritime crime - which includes armed robberies, human and cargo smuggling, drug trafficking and money laundering - demands quick responses, but a telephone call or an e-mail might sometimes be the only necessary move to prevent a major breach from occurring, Au said. "We all know that professional rivalries and jealousies exist," Au said. "But criminals do not care about national and regional jurisdiction or about the limitations that are imposed upon those fighting their activities. They have no problemcooperating with each other." Examples of criminal cooperation include human smuggling, which often involves several syndicates from different countries who "move a large group of people across the world in an incredibly short period of time, despite great differences in cultures and languages," Au said. The conference in Malaysia is also being attended by representatives from Bangladesh, Brunei, Cambodia, China, India, Indonesia, Japan, Laos, Malaysia, Myanmar, Pakistan, the Philippines, Singapore, South Korea, Sri Lanka, Thailand andVietnam. Indonesia's Marine Police Director Nengah Sutisna said his country enhanced regional cooperation through coordinated patrols with Malaysia and Singapore and training exercises with Japan and Australia. However, Indonesian authorities have limited patrol ships with outdated communication and navigation equipment, and face other obstacles such as late reporting of sea crimes across its sprawling archipelago, Sutisna said. There were 79 pirate attacks in Indonesian waters last year - nearly one-third of the global tally. The figure was not inclusive of 12 attacks in the Malacca Strait, a busy shipping lane between Indonesia's Sumatra island and peninsular Malaysia. © The Jakarta Post.

Nippon Foundation donates marine trainer ship to Malaysia, says Najib
Putrajaya - Malaysia will receive a marine patrol trainer ship as a "gift" from Nippon Foundation, Deputy Prime Minister Datuk Seri Najib Tun Razak announced Tuesday. He said the contribution was part of efforts by the foundation to assist the Malaysian government to protect the Melaka Strait from pirate attacks and robberies. The trainer ship would be handed to the Malaysian Maritime Enforcement Agency (MECC) on the third week or at the end of next month, he told reporters after opening the second Asian Coast Guards Control Agencies meeting. Najib, who is also Defence Minister, said the Nippon Foundation's contribution of the trainer vessel was also to help Malaysia develop its coast guard control at the 900km Melaka Strait. "The trainer ship is an example of assistance in the form of capacity-building to us which is not contrary to the capacity-building we want (in terms of territorial water safety and security)," he said. Najib said Malaysia welcomed the trainer ship gift as it fulfilled two main principles held by the Malaysian Government, that is, the right and responsibility to protect the Strait of Melaka must be the duty of the littoral states. "This is also what our neighbours (littoral states) Singapore and Indonesia want. The form of assistance must also be in line with the principles," he said. He said Malaysia had taken pro-active measures to ensure maritime safety and security at the Melaka Strait under the aerial monitoring of the marine patrol initiatives also participated by Indonesia and Singapore. In this context, he said, the Malaysian Maritime Enforcement Agency has been provided with two modified Beachcrafts by the Royal Malaysian Air Force to oversee the security at the Strait of Melaka. The agency is expected to receive two CN235 reconnaissance aircraft equipped with control sensors under the Ninth Malaysia Plan, he said. Earlier, in his speech, Najib said close cooperation with littoral states and other international waterway users was a necessity and not a choice. "Nonetheless, in pursuing this aspiration, we may have to endure numerous challenges ahead," he said. He said there was a big drop in piracy cases in the Strait of Melaka as a result of increased security awareness by the ship masters and enforcement measures taken by the littoral states to combat piracy. On record, he said, there was only one piracy case reported from July to December last year on the Malaysian side of the strait as compared to 18 cases in the whole area of the international waterway. Najib said there was no piracy or seaborne robbery case reported in the strait this year except one in the coast off Terengganu. Najib said he hoped the three-day meeting of the Heads of Coast Guard Agencies in Asia beginning Tuesday would aim for a continued and rigorous efforts among coast guard agencies to address the safety issues at the strait. He said it was also becoming more important for all the countries in the world to subscribe to the use of the Sea Lines of Communication (SLOC) in shielding themselves from any maritime security threat. It is especially true for littoral states of the Strait of Melaka as the strait is considered one of the longest and busiest waterways in the world, transited by over 72 per cent east-bound loaded tankers on a global basis from the Indian Ocean to the Pacific Ocean, to also subscribe to SLOC. By subscribing to SLOC, Najib said countries including in Asia and the littoral states could cooperate regionally in the area of enforcement from piracy threat. "Littoral states and other Asian countries today should act as a conduit and continue to eliminate the pressing problems of the SLOC," he added. © 2006 BERNAMA.

No reason to classify Straits of Malacca as war zone
Port Klang - The Straits of Malacca provides safe passage for ships, so there is no reason for international insurance companies to classify it as a “war zone” and increase insurance premiums, said the Deputy Prime Minister. “For the second half of last year, there was only one case of piracy reported on our side of the straits, compared with 18 cases for the corresponding period in 2004,” said Datuk Seri Najib Tun Razak. “While there have been cases of piracy in the past, the number was very small and the attacks not connected to regional or global terrorism,” he said, adding that there had been no report of piracy on the Malaysian side of the waterway this year. Najib said since the Sept 11, 2001 attacks, terrorism had continued to occupy the agenda of the security community and planners worldwide. “The subject has been debated extensively to the extent that the Straits of Malacca is said to be a potential target. I strongly disagree as there is no evidence of this,” he said. He pointed out that several new approaches had been taken to protect the straits, including co-ordinated maritime surveillance between Malaysia, Indonesia and Singapore as well as the “eye in the sky” initiative. “This waterway is plied by more than 2,500 oil tankers which is half of the world’s oil tankers, and 300 cargo vessels daily. Its importance to world trade cannot be ignored,” he said at the launch of the Malaysian Maritime Enforcement Agency at Northport here yesterday. In Putrajaya later, Najib said the Defence Ministry would use two modified CN-235 aircraft and upgrade two Beechcraft planes with sensors. The CN-235 planes would be used as maritime patrol aircraft while the two Beechcraft planes would be used to detect ships and tugboats in the night, he told reporters at the Second Meeting of Heads of Coast Guard Agencies Asia. Najib also said close cooperation between littoral states and international users in managing waterways like the Straits of Malacca was a matter of necessity, not choice. © Star Publications (Malaysia) Bhd.

OPRF Submits Proposal for a 21st Century Ocean Policy for Japan
Tokyo - The Ocean Policy and Research Foundation (OPRF) recently submitted to the Japanese Government a proposal for a 21st Century Ocean Policy. The proposal indicates a significant development in Japan’s keenness to further strengthen the country’s ocean governance. The proposed policy is a comprehensive policy that aims to provide a strong legal foundation for the integrated development and management of Japan’s coastal and marine environment. The proposal was developed in response to the UN Convention on the Law of the Sea and Agenda 21, as well as Japan’s recognition of the need to address the emerging issue concerning of the marine environment. The proposal includes the following main elements:
1. On Becoming a True Oceans State: The Need for a Comprehensive Ocean Policy;
2. Ocean Policy Objectives;
3. Enacting a Basic Ocean Law;
4. Establishing an Administrative Organ; and
5. Management and International Harmonization of the Nation’s Expanded Ocean Territory:
. Building a framework for management of the EEZ and continental shelf.
. Establishment of a security policy for the oceans.
. Promotion of marine protection, conservation, and restoration.
. Promotion of ocean resources development that is respectful of ecosystems.
. Strengthening initiatives for creation of ICZM.
. Promotion of disaster prevention and reduction.
. Provision of information resources for ocean governance.
. Promotion of research, education and outreach.
The proposed policy is currently going through the passage of approval by the Cabinet and eventually the Diet (Japan’s Parliament). The Ministry of Land, Infrastructure and Transport is at the forefront of pushing for its swift approval. The development and submission of the proposal for a 21st Century Ocean Policy for Japan is an essential first step for the country’s intensified commitment towards the sustainable development of Japan’s marine environment. It is also seen as a good example to encourage other countries in the region to pursue an integrated policy for oceans governance. © PEMSEA 2005.

Perak to have a dockyard by end of next year
Ipoh - A RM50 million dockyard will be built in the state, which is tipped to become the country's main maritime zone, by the end of the year. Halim Mazmin Bhd executive chairman Tan Sri Halim Mohamad said that the dockyard, to be constructed on a 40 ha land at Sungai Dinding, Segari, would enable companies involved in the shipping industry, especially local ones to save millions of ringgit as they did not have to send their ships overseas to be repaired. HMB agreed to build the dockyard after discussions were held with Perak Menteri Besar Datuk Seri Mohd Tajol Rosli Ghazali. Halim said that Sungai Dinding, Segari in Lumut was chosen due to its strategic location near the Strait of Melaka, Port Klang and Penang Port. "Lumut is also suitable due to the deep water," he told a press conference after the launching of an entrepreneur programme at state level by the Menteri Besar on Saturday. Also present were Minister of Entrepreneur and Co-Operative Development Datuk Mohamed Khaled Nordin and his deputy Datuk Khamsiyah Yeop. Halim said that Malaysia's capability in repairing ships was limited and as such it was not surprising that many ship owners had to spend millions of ringgit to send their ships to countries like Singapore and Batam in Indonesia. "Currently, there is only one dockyard to repair ships in Malaysia, which is owned by MISC and located at Pasir Gudang, Johor but it is not able to cater to the high demand," he said. Halim also said that the company planned to turn the Sungai Dinding dockyard as a centre to build boats as to date Malaysia did not have the capability to manufacture its own boats. He said that for this purpose the company will exchange technologies with Japan and Australia. © 2006 BERNAMA.

Philippine stakeholders look into approaches to sustainable development of coasts and oceans
Pasay City - Philippine stakeholders gathered to discuss the implementation of the Sustainable Development Strategy for the Seas of East Asia (SDS-SEA) and explore best means to support its regional implementation through local initiatives. Over 80 stakeholders, representing various national government agencies, the legislature, local government units (LGUs), financial institutions, the private sector and nongovernment organizations, participated in the National Consultation Workshop on the Sustainable Development of Coasts, Islands and Oceans held from 23-24 February. The workshop provided the stakeholders the opportunity to discuss issues in marine and coastal environment, review current coastal and marine management initiatives that contribute to the implementation of the SDS-SEA, and formulate a national framework and set of recommendations in support of SDS-SEA implementation. Key recommendations that came out of the workshop included:
.the need to formulate a national policy and framework for integrated coastal management (ICM);
.target the establishment of functional ICM initiatives in 5% of the country’s coastal municipalities by 2010;
.develop a sustainable institutional mechanism for Manila Bay and for the implementation of the Operational Plan for the Manila Bay Coastal Strategy;
.implement policy and institutional reforms to encourage and enhance public and private sector investment in environmental infrastructure; and
.enhance capacity building for LGUs on ICM and environmental investments
The workshop was organized by the Department of Environment and Natural Resources, the Manila Bay Environmental Management Project and PEMSEA. The SDS-SEA was adopted in the Putrajaya Declaration during the East Asian Seas Congress in 2003. The document serves as a common platform of regional cooperation and partnership building in achieving sustainable development goals in the East Asian seas region. Through its implementation, the region also hopes to achieve the objectives and targets set in the World Summit on Sustainable Development Plan of Implementation and the Millennium Development Goals. © PEMSEA 2005

Piracy remains threat in Southeast Asia by Christopher Torchia
Singapore - Following the Sept. 11, 2001 terrorist attacks, Washington and its allies feared militants could inflict global economic devastation with a high seas assault in the Malacca Strait in Southeast Asia one of the world's busiest shipping lanes. More than four years later, analysts say tougher law enforcement in the region has helped contain the threat of piracy in the strait, which lies between Indonesia's Sumatra island and Malaysia and Singapore. Still, vulnerabilities remain. Indonesia lacks resources to patrol the coastline of Sumatra and other islands in its vast archipelago. Islamic militants are believed to have moved freely in waters north of Sulawesi island, about 1,200 miles east of the strait, en route to sanctuaries in the Philippines. On a trip to Indonesia last week, Secretary of State Condoleezza Rice said maritime security is a top priority in the region, noting that one-quarter of the world's oil and trade pass through the Malacca Strait every year. "Southeast Asia is more water than land," Rice said. "We are working with Indonesia and others to close this region's waterways to drug smugglers and human traffickers, pirates and weapons proliferators." Tougher law enforcement has helped. Attacks in the Malacca Strait fell to 12 in 2005 from 38 the previous year, according to a report by the International Maritime Bureau, a maritime watchdog. Tens of thousands of ships pass through the strait annually. Indonesia, Malaysia and Singapore have started joint air and sea patrols, while neighboring Thailand is also getting involved in the policing. Australia is advising the Philippines on maritime surveillance amid concerns that Indonesian recruits of al-Qaida's regional ally, Jemaah Islamiyah, are sneaking into terror training camps in the southern Philippines. The Abu Sayyaf, another group linked to al-Qaida, operates in the area and has been blamed for numerous kidnappings and bombings. "What was a problem of some concern has now been … brought under control," said Tim Huxley, an expert on Asia-Pacific security at the International Institute for Strategic Studies, based in London. "Some of the reportage on this issue over the years has given the impression that the strait is highly dangerous. The figures show that that's not the case." Another reason for the decline of piracy may have been the Indian Ocean tsunami in December 2004 and subsequent peace agreement between the Indonesian government and rebels in Aceh province. The disaster devastated Aceh and brought substantial foreign naval forces into the region as part of the relief effort, possibly impacting the capacity of pirates to operate, Huxley said. The peace deal reached the following year curbed the underground arms trade that supplied the rebels, which could have also deprived pirates of weapons. However, bilateral disputes and sovereignty concerns could undercut cooperation. Last year, a dispute over oil fields in Sulawesi Sea, which separates Malaysia and Indonesia, triggered a tense standoff between their navies. Territorial sensitivities about a navy chasing suspected pirates into another country's waters in so-called "hot pursuit" could also make it easy for criminals to slip away, said Christian LeMiere, Asia editor for Jane's Country Risk in London. "There are doubts about the effectiveness of these patrols," he said. He noted that pirates are elusive because they operate in small, inflatable boats, often under the cover of darkness. In some cases in Indonesia, law enforcement authorities are suspected of colluding with pirates. Some security experts have said terrorists could try to seize an oil tanker, steer it into a harbor and detonate it in a giant ball of fire. LeMiere said a more likely scenario would involve pirates seizing a tanker, blocking sea traffic and creating a huge oil slick. Last year, the Joint War Committee of the Lloyd's Market Association put the Malacca Strait on its list of war risk areas, and some shipowners paid additional premiums for passage through the waterway. But industry leaders say many reported attacks in the region occur on moored ships of small or medium size, and amount to little more than petty theft. "There is a very distorted definition of piracy as far as this region is concerned," said Daniel Tan, the Singapore-based secretary-general of the Federation of ASEAN Shipowners Associations. "A lot of these incidents are occurring within territorial waters, within port areas, on anchored ships." However, attacks in the Malacca Strait can be ruthless. Last June, pirates boarded a Thai tanker armed with guns and knives and kidnapped two crew members, including the ship's captain. They were released 10 days later after a ransom was paid. © 2006 The Associated Press; 2006 ABC News Internet Ventures.

Tough times ahead for illegal fishers: High Seas Task Force announcces global action by Achim Steiner & Carl Gustaf Lundin
World Conservation Union will help establish global database on high seas fishing vessels and promote greater transparency in high seas fisheries activities Paris, France, 3 March 2006 (IUCN) – A global database to track down illegal fishing vessels and a new set of guidelines for regional fisheries management organizations to fight illegal, unreported and unregulated (IUU) fishing and sustainably manage ocean resources are amongst the key proposals of the High Seas Task Force final report launched today. The High Seas Task Force (HSTF) comprises fisheries ministers from six nations and three conservation organizations including the World Conservation Union (IUCN). The Task Force launched a report today to catalyze global action against illegal, unreported and unregulated fishing activities (IUU fishing). „The only ones to profit from IUU fishing are the owners of the fishing fleets who remain hidden behind veils of corporate secrecy. The new Global Information System on High Seas Fishing Vessels will help identify them and reduce the severe overexploitation of fish stocks," said Achim Steiner, Director General of the World Conservation Union at the launch. IUU fishing is now a planet-wide scourge that undermines sustainable fisheries, exacerbates damage to marine habitats and species, and threatens the livelihoods of responsible fishers and communities dependent on fishing. Over half of the global fish stocks are already fully exploited, and 25 percent are overexploited, depleted or recovering from depletion. “This leaves little room for expansion and no margin for error,” said Carl Gustaf Lundin, Head of the Union’s Global Marine Programme. The worldwide catch of illegal, unreported and unregulated fishing is worth up to US$ 9.5 billion The worldwide value of IUU catches are worth up to US$ 9.5 billion, shows a High Seas Task Force study. IUU catches make up about 14 percent of the value of marine catch globally, based on figures available for 2001. Up to 30 percent of IUU fishing occurs beyond national jurisdiction, where there are fewer controls. The HSTF report reveals the ploys used by IUU fishers and loopholes in current enforcement systems that enable them to escape detection and sanction. One of these loopholes, used by roughly 15 percent of large-scale fishing fleets globally, is registering under a flag of convenience – a flag of a country that does not enforce international maritime law strictly. The HSTF report identifies nine practical initiatives to close the net on these modern-day pirates. The HSTF partners will start implementing them immediately. These initiatives address the need to improve our knowledge of IUU fishing and its impacts on target fish stocks and other marine species and habitat; they call for a comprehensive and better managed network of regional fisheries management organizations (RFMOs); and they will help national authorities and RFMOs to detect, apprehend and sanction those involved in IUU fishing. The High Sea Task Force report is ideally timed to garner broad support. It comes on the heels of a major international gathering under United Nations auspices two weeks ago that identified IUU fishing and destructive fishing practices as the two most significant and immediate threats to ocean life beyond national jurisdiction. In 75% of the high seas, deep sea fisheries are totally unregulated For the World Conservation Union, unregulated fishing is a particular concern. In 75% of the high seas, deep sea fisheries, as well as most shark and squid fisheries, are totally unregulated – no management organizations are in place to control these activities. Long-lived sharks and deep sea fishes are being caught at an unsustainable rate, and fragile corals reefs, seamounts and sponge beds are in peril from destructive fishing practices such as bottom trawling. Populations of two deep sea fish - the onion eye and the round-nose grenadier– caught in the northwest Atlantic have crashed by 93.3 percent and 99.6 percent over the past 26 years. Both now qualify for listing on the IUCN Red List of Threatened Species. So far, deep sea fisheries have proven extremely unsustainable: on average, they have peaked after five years and collapsed after 15 years. On average, deep sea fisheries collapse after 15 years Illegal long-line fishing and other types of unregulated fisheries take a severe toll on seabirds, sea turtles and other non-target species.; 300,000 sea birds are killed each year through illegal long-line fishing. The HSTF report therefore calls for a complete network of effectively operating RFMOs to tackle these problems. “The World Conservation Union cannot allow current high seas fishing to foreclose opportunities for sustainable and equitable use of ocean resources. Closing the net on IUU fishing is essential, and the Union will spotlight irresponsible operators so that they abandon their illicit activities,” said Achim Steiner. ”Until RFMOs have met high standards of performance, the Union will continue to call for interim measures to protect vulnerable ecosystems and biodiversity.”

US presses RI on security initiative by Mark J Valencia
Kaneohe, Hawaii - The United States is pressing Indonesia to publicly declare its participation in the Proliferation Security Initiative (PSI). In formal terms the PSI is a multilateral activity to prevent weapons of mass destruction (WMD), their delivery systems, and related materials from reaching or leaving arbitrarily declared sub-state or state "actors of proliferation concern" -- like North Korea and Iran. But in reality it is a U.S.-initiated and driven, non-UN effort focused on interdictions and seizures. The United States wants Indonesia (and Malaysia) to join so that it can focus interdiction efforts in the Malacca Strait -- a natural choke point for maritime traffic between East and West Asia. The PSI is purported to have made considerable progress since its initiation by U.S. President George W. Bush in May 2003. Countries publicly adhering to PSI principles have grown from an initial core of 11 to about 35. But its aggressive promotion and implementation have also created considerable controversy. It has been criticized for lacking sufficient public accountability, stretching, if not breaking, the fundaments and limits of existing international law, undermining the UN system, negatively impacting legal trade, having limited effectiveness, and being politically divisive. The secretiveness surrounding PSI interdictions and the methods employed make difficult the evaluation of its success and its legitimacy, and thus the garnering of support from countries suspicious of U.S. -- driven endeavors. Some fear that the United States would like to change existing international law to allow PSI interdictions on or over the high seas. Others do not agree with the potential U.S. argument that such interdictions are warranted by a right to pre-emptive or preventive self- defense. Indeed, they do not want to see the PSI lead to a weakening of the international prohibition against the unilateral use of force. Perhaps the greatest obstacle to PSI effectiveness is the fact that most of the ingredients for WMD are dual-use in nature, having both civilian and WMD applications. Few, if any, countries export "turn-key" WMD. The harsh reality is that countries and non-state actors can build their own WMD from dual-use components, using dual-use technologies and machines. But a proliferation of interdictions of dual use materials may hamper legitimate commerce and thus engender opposition even from PSI participants. Moreover it is very difficult to make decisions regarding "good cause" for interdiction and such decisions will inevitable be politically influenced and based on who is sending or receiving the shipment. For example, although India, Pakistan and Israel are nuclear states and not parties to the Nuclear Non-Proliferation Treaty the United States does not consider them "states of proliferation concern." Thus they are apparently exempt from PSI interdictions. In not joining PSI, Indonesia has been in good company -- for good reasons. Countries that are critical to a successful PSI -- like China, India, Malaysia and South Korea have not publicly joined the activity despite U.S. pressure to do so, and Japan and Russia seem to be rather reluctant participants. Participation in the PSI presents a particular dilemma for Indonesia which has archipelagic waters, territorial seas and an EEZ in the busy and strategic Malacca Strait. If it becomes an active participant it could appear to both foreign and domestic audiences to be in military collusion with the United States against third countries. This could make the government the target of actions by foreign and domestic extremist groups and undermine it in its ideological battle with Islamic fundamentalists and radical nationalists. It also would place obligations on Indonesia to act at the request of another PSI member. Indonesia has good relations with Iran and has long had diplomatic relations with North Korea. If the United States and other PSI members declare such nations to be of proliferation concern and present "good cause" to suspect certain vessels or aircraft are transporting WMD, Indonesia may have to act against those vessels or aircraft even if they are flying the flag of a nation friendly to Indonesia. And Indonesia could become party to an undermining or reinterpretation of international law, sovereignty and sovereign equality that could one day be used against it. On the other hand, if Indonesia does not join the PSI, it risks possible negative implications for newly regained assistance to its military from the United States. It may also risk unilateral actions by the United States and other PSI members such as Singapore in the Strait, in its EEZ, and possibly even its territorial waters. Indonesia could choose a middle ground in which it supports the PSI in principle and facilitates its implementation, but does not become a full-fledged member. In other words, it could address the issues on a case by case basis and reserve for itself the decision on interdictions either by itself or by others based on an evaluation of the intelligence and "other considerations". If chosen, such a policy should be maintained despite the pressure of self-interested parties. © The Jakarta Post.


WEEK 5: (26 - 31 March 2006)

APMM assures security in Melaka Strait: Najib
Port Klang - Security in Malaysian waters, especially along the Strait of Melaka, would be assured through the Malaysian Maritime Enforcement Agency (APMM), which was set up in response to concerns by the international community towards terrorist threats. Deputy Prime Minister Datuk Seri Najib Tun Razak said Malaysia should provide clear signals to the international community that the country was serious in matters concerning security of its waters. He said Malaysia as a trading nation and with large stretch of waters, would give priority to security in its territory. "Since Sept 11, terrorism has certainly become an issue of concern among the international community. Based on this development, Malaysia's response was to set up a specialised maritime agency that is APMM," he said when he officially launched the APPM at the North Port here Tuesday. APMM was established to enforce laws and maintain peace in the Malaysian maritime zone, as well as conducting search and rescue operations, preventing pollution and fighting piracy. Najib said based on the latest data, the Malaysian waters especially the Melaka Strait was a safe waterway, with only one case of piracy reported from June to December last year compared to 18 cases in the same period of 2004.Todate, no case of robbery at sea was reported and there was no proof of a robbery incident in the Malaysian waters which was linked to international terrorism, he said. Najib said half of the world's crude oil vessels and more than 300 cargo ships passed through the Melaka Strait daily. Given that the security conditions were better in the Melaka Strait, Najib said insurance companies which had labelled the waterway as a "war zone" should review their premiums imposed earlier. "If there are insurance companies (who view Melaka Strait) as a "war zone" to raise premiums, then this data showed otherwise. "We hope they should re-think their assessment," he said. Najib said the international community must take into account the improved situation in the Melaka Strait as evident from the data and statistics on security along the more than 900km waterway. "I hope these data can convince the international community that this area is safe for their use. There should be no reluctance whatsoever to ply the strait," he said. With the APMM's operations, he said, the maritime community plying the country's waters should have no worry as the APMM personnel would always be on the ground. Previously, enforcement of the federal laws at Malaysia's maritime zones was enforced on sectoral basis by 11 enforcement agencies with a manpower of nearly 4,500 people. Realising that the situation could lead to ineffective enforcement, he said the government decided to set up a specific maritime agency to ensure a more orderly and efficient enforcement. As a new agency, Najib said the APMM had a good opportunity to mould a new culture among the personnel like having high integrity, commitment and achievement. © 2006 BERNAMA.

Call for multi-dimensional approach to combat piracy in Strait
Kuala Lumpur - A research fellow at the Maritime Institute of Malaysia (Mima) has called for a comprehensive and multi-dimensional approach to combat terrorism and piracy in the Strait of Melaka. Nazery Khalid said that their root causes, mostly originating on land, must be identified and addressed and that the transnational, fluid nature of terrorism and piracy demanded comprehensive and sustained multi-national efforts in countering their threats. Speaking on security of passenger cruise vessels in the world's longest strait at a conference in Hong Kong, he said the comprehensive and multi-dimensional approach was necessary because strategically-sensitive waterways like the Strait of Melaka could be easily tainted by bad PR and distorted perception. The text of his speech was made available, here Monday. Nazery said passenger cruise vessels, by nature of their operations, features and load, could be inviting to pirates and terrorists. However, he added, a few isolated attacks on passenger vessels elsewhere should not taint the perception of the strait's unblemished safety record for cruise ships. On the perceived security threat of passenger cruise vessels in the Strait of Melaka, he advocated assessing the risk based on solid intelligence and realities rather than mere opinions. "It is crucial to separate piracy from terrorism. Pirates commit their deed for monetary and commercial reasons while terrorists are just out to score political points and make ideological statements," he said. He said that statistically, it must be conceded that the possibility of a pirate attack on a cruise ship, or any type of ship for that matter, in the Strait of Melaka was remote. "The International Maritime Bureau reported only 12 piracy incidents in the strait in 2005 compared with 38 in 2004. Given that over 63,000 ships traverse the straits annually, the incidents represent a minuscule percentage of the traffic volume," he said. © BERNAMA.

Malacca collision spill 'minimal'
Malaysia marine authorities are taking steps to prevent an oil spill following the collision of two ships in the Strait of Malacca early on Friday morning. 'There has only been minimal oil spill,' Malacca state marine officer Lim Fung Vui told Fairplay today. “We are taking the necessary preventive steps.” The Greek-operated, Panama-flagged 75,700-dwt bulk carrier California sank 10.5n-miles southwest of the island of Undan off the west coast state of Malacca after colliding with the South Korean-flagged and operated container ship Sinokor Seoul at 0130 on 24 March. All the California’s 24 crew members, including its captain, a Ukrainian national, were rescued by the crew of the Sinokor Seoul. Lim told Fairplay the Korean ship suffered slight damage on the bow and is now at an anchorage off Malacca pending investigations. Baharin Abdul Hamid, peninsular Malaysia’s marine director of navigation safety, issued a statement immediately after the incident saying that marine department had taken immediate steps to ensure safety of navigation, including sending repeated navigational warnings by telex every four hours. A vessel was sent to the scene to monitor and control pollution and another to mark out the area where the ship sank. About 50,000 ships a year pass through the busy 800-km strait, bounded by Indonesia's Sumatra island and peninsular Malaysia. © Lloyd's Register - Fairplay Ltd 2006.

Malaysia says Australia, UK, New Zealand may play role in Malacca Strait security
Kuala Lumpur - Australia, Britain and New Zealand may play a role in securing the Malacca Strait but the sovereignty of bordering states will be safeguarded, Malaysia's defence minister said. 'They are interested in the situation in the Straits of Malacca,' Najib Razak said after talks with the armed forces chiefs of Australia, Britain, New Zealand, and Singapore, who form the Five Power Defence Arrangement (FPDA). 'They are studying how the FPDA can help ensure security in the Straits of Malacca, in terms of capacity-building to help Malaysia and the other littoral states,' Najib told a news conference. Asked if the FPDA member countries will join Malaysia's 'Eyes in the Sky' aerial patrol initiative, he said 'They can join the Eyes in the Sky program as long as it doesn't infringe on the sovereignty of the littoral states.' 'If they offer their own aircraft, it must be operated by Malaysian armed forces personnel.' 'For example if they offer a maritime aircraft, the consoles of that aircraft must be operated together with Malaysian personnel. This is one of the pre-conditions under the Eyes in the Sky program,' he said. Under the FPDA, which was signed in 1971, the five nations will consult each other in the event of external aggression or threat of attack against either Southeast Asian country. Najib said the FPDA has been expanded beyond traditional territorial threats to deal with non-conventional security threats such as terrorism, and conducts regular security exercises focusing on acts of terror. The Eyes in the Sky project involving Indonesia, Malaysia, Singapore and Thailand was launched last September, with each of the countries taking turns conducting aerial patrols of the strait. The Malacca Strait is one of the world's most important waterways, with 50,000 ships carrying about one-third of the globe's trade passing through it each year. © 2006 Forbes.com Inc.™

Malaysia to help patrol Malacca Strait
Port Klang - Malaysia formally launched its coast guard on Tuesday with a review of ships and troops by Defense Minister Najib Razak, who said the force symbolized the country's determination to protect its waters. The biggest maritime threat to the Southeast Asian nation is piracy on its side of the Malacca Strait, which links Asia with the Middle East and Europe and carries some 40 percent of the world's trade, including 80 percent of the energy supplies of Japan and China. But Najib said piracy attacks in the strait had been falling, and none had been reported in Malaysian waters so far this year. "Our statistics indicate that the number of incidents on our side of the strait have dropped very dramatically," he said, noting that only one case had been reported in the second half of 2005, against 18 cases in the same 2004 period. In all, there were 12 attacks in the 805-km- (500-mile-) long strait last year, compared to 38 in 2004. The Malaysian coast guard, which began operations last November, will have a strength of 4,500, drawn from the navy, police, customs and other agencies, and a fleet of 72 vessels, mainly fast patrol boats, Najib told a gathering of coast guard officials from Australia, the United States and 16 Asian nations. "The formation of the Malaysian Maritime Enforcement Agency demonstrates our seriousness to address the maritime security issues," he said. He also said the steady fall in piracy attacks indicated that a re-assessment of the Malacca Strait's insurance classification was required. "We hope the international insurers (Lloyd's) will reconsider the decision to classify the Strait as a war zone," Najib said. "Statistics don't bear out this fact." The London insurance market last year classed the Malacca Strait a "war risk" zone -- adding the sea lane to a list of 21 areas such as Iraq and Colombo that it deemed high risk and vulnerable to war, strikes and terrorism. But Indonesian waters pose the world's great piracy risk, accounting for almost 30 percent of reported attacks in 2005, says the International Maritime Bureau, an ocean crime watchdog. Global piracy fell in 2005, from 329 attacks in 2004 to 276 last year, with Indonesian attacks down from 94 to 79. © 2005 The China Post.

Najib: drop war-risk tag on straits
Port Klang - International insurance agencies should reconsider their policy of charging higher premiums on ships plying the Straits of Malacca on the basis of the waterway’s classification as a "war-risk zone". Deputy Prime Minister Datuk Seri Najib Razak said incidences of piracy in the straits had declined dramatically since 2004, and there was no evidence that these attacks had any link to global terrorism. Launching the Malaysian Maritime Enforcement Agency (MMEA) at Northport yesterday, Najib said there had only been one pirate attack in Malaysian waters in the straits between June and December last year, contrasting with the 18 cases reported in the corresponding period in 2004. "We are proud to say that so far this year, there have been no cases of pirate attacks in the Straits of Malacca. "Half the world’s oil tankers sail through the straits. Malaysia recognises that it has a responsibility to ensure the safety of these ships," he said. "One of the efforts we have taken is to set up the MMEA as a more concerted and integrated means to patrol our waterways. "If before we had 11 different agencies involved in maritime security and tasks, now we have one agency with the authority and power to do so. "The Government is confident that the MMEA will be able to increase the security of Malaysian waterways." Last y