Grant Aid to Indonesia for the Project for Construction of Patrol Vessels for the Prevention of Piracy, Maritime Terrorism and Proliferation of Weapons

June 16, 2006

1. The Government of Japan has decided to extend to the Government of the Republic of Indonesia a grant aid up to a total of 1,921 million yen for the project for Construction of Vessels for the Prevention of Piracy, Maritime Terrorism and Proliferation of Weapons. Notes to this effect were exchanged on June 15 (Thu) between Mr. Shin Ebihara, Japanese Ambassador to Indonesia, and Mr. Primo Alui Joellanto, Director General for Asia Pacific and Africa Affairs, Department of Foreign Affairs.
2. The Strait of Malacca is an international maritime artery, with more than 200 vessels per day and about 14,000 vessels per year which are all related to Japan navigating through it. More than 10% of all the world's piracy happens in the Strait, and there is an urgent need to strengthen the maritime security of littoral states. The attack on a Japanese vessel in March last year occurred in this very area. It is therefore in Japan's interest to ensure the security of the Strait of Malacca.

   The Government of Indonesia has not been able to exercise sufficient control as it lacks the high-speed boats necessary for pursuing pirate ships, and it has to cover vast sea areas. The Government of Indonesia therefore needs to establish a maritime security system by building adequate patrol vessels.

   Against such a background, the then President Megawati Sukarnoputri and Foreign Minister Noer Hassan Wirajuda requested Japan respectively in June 2003 and February 2004 to extend grant assistance for improving vessels to strengthen its capacity in maritime security.

   Outline of the Project

   (1) Purpose of Vessels

   The project will provide Indonesia with three vessels to be deployed by the Marine Police of the Provinces of Riau and North Sumatra, and also by the Directorate Marine Police of the Indonesian National Police in Jakarta. These vessels will be used to prevent piracy, maritime terrorism and proliferation of weapons in the Strait of Malacca.

   (2) Implementing Organization

   The Directorate Marine Police of the Indonesia National Police

   (3) Specifications

   major dimension: maximum length: about 27 meters
   speed: about 30 knots (maximum/full load)
   accommodation: 10 crew members plus 2 (prisoners)

3. The project is expected to bring about the following effects:
   1. (1) The patrol vessels provided under this project, combined with those already in use, will enable 24-hour patrols in a piracy-prone zone.
   2. (2) The patrol area from each base will be extended to a 250-mile radius from the present 170-miles, thereby enabling the authority to patrol almost all parts of the piracy-prone zone.
   3. (3) The project will contribute to strengthening the maritime security system in Indonesian costal areas especially in the Strait of Malacca
   4. (4) The project will stabilize shipping (including vessels of Japanese registry) in the Strait of Malacca
   5. (5) This assistance will promote friendly bilateral relations between Japan and the Republic of Indonesia.
4. Relationship between ODA and Three Principles on Arms Exports

   The world is facing an increasing number of acts of terrorism, piracy and other types of illegal activity.

   Responses to such acts that directly influence Japan's economic activities and the security of its citizens are becoming all the more important to the peace and development of the international community. The international community should make concerted efforts to address these challenges. Japan intends to strongly support the governments of developing countries and other organizations in controlling and preventing terrorism and acts of piracy.

   As the patrol vessels to be exported under this project have been bullet-proofed to protect their crew members, they fall under the category of "military vessels" stipulated by the Export Control Trade Ordinance and are defined as "arms" in the Three Principles regarding Arms Exports. When a cabinet meeting decided on the conclusion of an agreement with the Government of the Republic of Indonesia concerning this project, the Chief Cabinet Secretary issued a statement announcing that Japan would regard this provision of these vessels as an exception to the Three Principles. In this statement, it is explained that the exception to these Principles is made through an international agreement, which will be signed between the two governments on this project, the prohibition of the use for purposes other than those stated in the agreement and the restriction of transfer to a third party will be ensured.

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