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Indonesia Port SecurityInternational Standards for Success

by Scott M. Bernat

Indonesia, rich in natural and man-made resources, isdependent on its port and maritime industry to advance

its economic interests and attract business development.

The safety and security of Indonesias ports and maritime

infrastructure remains paramount to achieving success as

a leader in world trade. Destination countries need to be

assured that maritime assets and associated cargo from

Indonesia have been subjected to the highest security

standards possible. Indonesia expects no less a commitmentto security from countries involved in exporting goods and

products there. The International Maritime Organization

(IMO) headquartered in London, England sets the standard

for improving and maintaining the safety and security of

international shipping and associated facilities. Worldwide

adherence to IMO standards ensures mutual safety and

security standards are met, increases confidence in

commercial trade and promotes business opportunity and

growth.

Challenges

The criminal and terrorist threat to ports and the maritimesupply chain remains a global constant and is routinely

highlighted in the media. Corruption serves to fuel the fire

and raises serious questions regarding the overall integrity

of even the best security plan. Piracy in its current form

is arguably nothing more than criminal activity, spurring

the public imagination and ultimately interfering with

the free flow and confidence of maritime trade. In many

locations throughout the world, poverty and/or greed

drives some company and facility insiders to link with

outside criminal elements to further breakdown security

efforts. Routine reports of container break-ins, as well

as the theft of whole containers, continue to highlight

the justification behind the adoption, implementation

and maintenance of internationally recognized security

standards. A cost effective security program begins with a

clear understanding of the threat faced and the application

of tailored and focused security practices and procedures.

IMO / ISPS Code

Following the 9/11 terrorist attacks in the United States,

the IMO promulgated a set of standards and procedures to

address and promote the global need for port and maritime

security. These standards, known as the International Ship

and Port Facility Security (ISPS) Code, were specifically

designed, based on existing local threat conditions andenvironment, to enhance security practices and procedures

for and between ships and port facilities involved in

international trade. These include the routine

conduct of ship and port security exercises and the

partnering of private and government entities to ensure the

sharing of threat information and security best practices.

The ISPS Code utilizes sound risk management conceptsto effectively address and mitigate potential threats to ships

and ports, thereby protecting against potential criminal and

terrorist threats. A ship or port facility adhering to the ISPS

Code highlights a commitment to security excellence and

is often awarded preferred treatment by the international

community. Preferential action includes decreased port

entry/exit delays for both ships and cargo.

ISO 28000

An integral part of maritime trade confidence is the

establishment, application and management of effective

supply chain security procedures. In 2007, the International

Organization for Standardization (ISO) published a seriesof supply chain security management standards. These

standards, known collectively as ISO 28000, establish

security best practices and procedures to protect against

potential threats to the safety and security of the supply

transportation and logistics system. Ships and port facilities

are essential components of the international supply chain

and their successful operations remain dependent on sound

supply chain practices.

Resources

Resources are available to assist countries, companies

and facilities with a vested interest and/or involved ininternational maritime trade, to develop, establish and

maintain an effective security program. These include both

private companies involved in fee-based ISPS Code

An Indonesian Navy commando guards a British Royal Navy

frigate at Tanjung Priok port in Jakarta.

www.b

elgian-navy.b

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Common practice withinIndonesian businesses is to

recruit new personnel on

the basis of a curriculumvitae (CV) provided by the

job applicants themselves.

Very seldom is any of the

information provided on the

applicants CV verified by

sources knowledgeable of

the applicant or validated by

queries to former places of

work, education institutions,

or even with local governments issuing citizen

identification cards. This practice, or lack of proper

due diligence in confirming basics of new employees

can lead to considerable business risk to employers

once contracts or permanent employment have been

extended to new job applicants. The Indonesian

business environment offers

considerable opportunities for

internal fraud due to rent seeking

behavior of government officialsand wide spread practices

of supplementing salaries by

fraudulent activities at the

expense of employers. An

interesting aspect of the

Indonesian environment that

businesses must face is the

inherent lack of transparency

regarding individual backgrounds,

and even an inability to rely upon government documents

themselves. For one, many Indonesians continue to possess

more than one national identification (ID) card. Those

ID cards may or may not contain correct information

pertaining to the holder other than possibly the photographic

image (frequently distorted due to pocket storage)

and ISO 28000 standards training, as well as governmental

organizations that provide similar services at no cost,

dependent on eligibility. The U.S. Coast Guard (USCG)

International Port Security Program focuses on worldwidemaritime trading nations and the implementation of the

ISPS Code. The USCG International Training Division

offers port safety and security training, often partnering

with the Asia Pacific Economic Cooperation (APEC)

and Organization of American States (OAS) to provide

port security subject matter and experts familiar with

the various port operating environments. The U.S. Naval

Criminal Investigative Service (NCIS), through its Security

Training, Assistance and Assessment Teams (STAAT),

also provides port and facility security training, primarily

focusing on locations and facilities frequented by and/or

contracted with the U.S. Navy.

Conclusion

Indonesias maritime trade and economic growth depend

heavily on its ability to secure and protect the supply

chain and associated ship and port facilities. The fast-

paced maritime commercial shipping industry, focused

on the import and export of in-demand commodities,

requires high confidence in the safety and security of its

operations. The uninterrupted ability of a ship to deliver

and a port to clear and account for discharged cargo

is critical to this success and remains reliant on the

successful implementation of ISPS Code and ISO 28000standards.

References

IMO / ISPS Code Information:

Website: http://www.imo.org

ISO 28000 Information:

Website: http://www.iso.org

USCG International Port Security Program:

The Maritime Security Help Desk

Telephone: +1-877-687-2243 option 8+1-202-372-1081

Website: http://homeport.uscg.mil

Navigate to the IPS Program Tab

Email: securityinfoexchange@uscg.mil

US Naval Criminal Investigative Service (NCIS)

Website: http://www.ncis.navy.mil

Scott M. Bernat is a civilian Special Agent of the U.S. Naval Criminal Investigative Service (NCIS), currently assigned

to the U.S. Embassy Jakarta, Indonesia Force Protection Detachment as the Resident Agent in Charge and Chief of U.S.

Military Security. During his 22 year career, he has worked as a security professional throughout Asia, Australia/Oceania,

Central America, Europe, Middle East and the United States. He is a recognized expert in Maritime and Port Security.

Precursor to Internal Fraud

By James D. Filgo

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and the name and position of issuing official. Government

citizen ID cards (referred to in Indonesian by the acronym

KTP) can be purchased for a nominal payment.

No archival information is maintained regarding suchfraudulent KTP, and as such any query to the appropriate

issuing office can at best only respond that the KTP,

although with a valid issuing office and date, is an invalid

KTP. That information is only valid when screening new

employees for warning signs and useless if searching for

employees suspected of committing internal fraud within

an employing company.

Another aspect of potential or existing employee

screening is to conduct criminal and commercial court

checks as well as cross checks against police arrest and

detention records. Such checks are worthless if the subjects

residence, correct name spelling, and date of birth are not

known. The court and police information is decentralized

in Indonesia and must be conducted in the city of residence

using the correctly spelled name and date of birth,

particularly important in a country with over 220 million

in population and an incredibly large number of duplicate

names. Therefore, as mentioned before, confirmation of

authentic KTP is absolutely necessary.

Indonesia on the fraudulent diploma mills that continue to

exist to this day. Not only can the graduation certificate

be forged or fraudulently obtained, but the actual issuing

institutions can be diploma mills or possess very poor,below minimum educational standards. So, an educational

check should be at both the individual and institutional

level for relatively unknown educational institutions.

Education is a key consideration for future trainability,

career development and overall initial evaluation of job

applicants. Indonesians very much understand this since

education provides the means to rise within a crowded

job market, even if overqualified for particular jobs by

education, and therefore may go to any means for this

particularly important competitive aspect.

Would this world not be much easier if prior

employment job references were accurate regarding

work experience and job performance? Forget it for most

job references in Indonesia. Job references tend to be

very brief with only job name (possibly final assignment

only) and either the very rare laudatory comments

or strictly confirmation of the period of employment

with the applicable firm, which I call a neutral

reference. The usual situation within Indonesia is that

Another highly desirable background aspect,

particularly for applicants for financial and accounting

positions is to determine some level of debt management

and living style. There is no Indonesian agency with a

credible database on individual existing debt, to include

even short term credit card debt. Habitual bad debtors

can move virtually at ease within Indonesia since legal

sanctions are difficult to apply within the Indonesian

court system and banks remain reluctant to share customer

information with competitors as they would have to doif sharing individuals defaulting on credit card debt. As

a result, individuals can obtain a long chain of unpaid

credit card debt, a big red flag for key individuals, which

new employers would be hard pressed to determine. The

use of bad checks, however, although less frequent in a

business society that frowns already on individual checks,

can result in placement on a central Bank of Indonesia

blacklist that can be cross-checked for individual names.

What about educational degrees stated on an applicants

CV? Well, there have been frequent cases throughout

both poor performance and misconduct are covered up by

use of neutral reference when employers are not willing

to be confrontational (Javanese hate this) by providing

a more accurate description of reasons for termination of

employment. Termination with cause can be very difficult

under current manpower regulations, so employers tend

to terminate with neutral references and salary payoffs

to avoid regulatory problems. Neutral references are

a definite warning sign. Validations can be made by

discreet queries to a subjects former peers and formerpersonnel division wherein no interviewee is required to

put comments in writing.

By highlighting some of the issues involved with pre-

employment screening, perhaps a greater awareness will

be achieved. With greater awareness, employers would

naturally conduct proper due diligence by internally

screening new job applicants prior to initiating employment

or outsource to firms capable of providing such a service.

In that manner, one of the key steps to reducing internal

fraud by taking preventive measures can be achieved. n

James Filgo, MA, is an American with a corporate investigation firm named Consolidated Services International, Inc.

(CSI) that provides outsource pre-employment screening, corporate due diligence and litigation support investigations.

CSI has been providing such services since 1991.

...lack of proper due diligence in confirming basics of new employees can lead to

considerable business risk to employers once contracts or permanent

employment have been extended to new job applicants.

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Protecting Intellectual Property RightsInterview with Brett McGuire, Country Manager, Rouse

Rouse is a global intellectual property (IP) consultancy

with offices in Asia, the Middle East and the United

Kingdom. Their teams of lawyers, consultants and

investigators specialize in IP, helping businesses to

develop and protect their IP. Rouse is best known for

their investigation and enforcement services and working

in countries with difficult IP rights environments. Mr.

McGuire is the Country Manager of the Indonesian arm

of Rouse. He has worked on IP rights issues in Australia

for over seven years before coming to Indonesia in 2006.

EE: What are the major risks or obstacles to protecting

intellectual property rights (IPR) in Indonesia?

BM: It is probably going to sound down-right obvious

but I think the main obstacle and the main risk is assuming

that, because IPR laws exist in Indonesia, the regulatory

environment surrounding IPR is the same here as

anywhere else. But its not. In some respects, the laws and

the principles are all the same. On the face, things look the

same but it doesnt take long, you dont have to whittle

down too far, before it becomes very, very different. Thats

probably the most significant risk. If you dont understand

those differences, then you can find yourself with no IP

protection despite all the money you have spent registering

trademarks, designs and patents.

EE: What are the most common risks faced by your

clients?

BM: The most common risk is from trademark piracy -

the use of well-known marks. Here, a trademark cannot be

enforced unless it is also registered. It means you really do

need to go through the act of registering all your trademarks

and all your rights here basically. The biggest problemwe encounter here is people knocking-off products, both

famous and ordinary brands, because they can. Often

because the owner of that brand hasnt realized they have

to do something proactively in terms of registering their

trademarks here.

EE: Once they are registered, do you find that there

are still problems with litigation or implementing

regulations?

BM: Its challenging. When I came here four years ago

it was virtually impossible to do enforcement or indeedlitigation because corruption was a bigger issue then than

it is now. You really need people who know what they

are doing. And you need to have a long-term strategy.

You cant jump in and when you encounter a problem,

expect to immediately resolve the issue and then return

to business as usual. If you are going to try to take action,

doing enforcement, etc. then you need to be looking at a

long-term strategy rather than a quick fix.

EE: Rouse has been active in Indonesia since 1997.How has protection of IPR changed over the last 13

years?

BM: It has improved significantly. Particularly in the

last two years, both the quality of the police and the

understanding of IP in the courts and by the police has

improved a lot. The IP office here, the Director-General

of IPR, has been very active in promoting IP awareness

with government agencies. Its still not perfect but it

has improved. I suppose in the last year, one of the

more significant changes is that the various ministries

and government agencies that are responsible for IP

enforcement have become self-aware. They are awareof the problems, and thats half the battle. Once you are

aware of it and you acknowledge it, then you can plan

to overcome it. So I think progress is going to get much

better very quickly in the next year to two years.

EE: Where do you think Indonesia needs to go next in

order to continue improving IPR?

BM: Indonesia needs to communicate better. I think the

biggest challenge they have, and the government realizes

this, is actually coordinating the various agencies and

ministries, etc. to be able to present a picture, a story, thatshows that progress is being made, and communicating

this to international agencies, to the U.S. Trade

Representative, to the European Commission, for example,

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to show that although they might think IPR issues arent

being addressed, there is in fact some progress. Thats a

big task and once that happens, I think then its really got

nowhere else to go but to continue improving. Its reallynow about perception and pulling the loose strings together

to get the momentum building.

EE: Has Indonesia been reaching out to international

partners to provide advice on how they continue with

improving IPR?

BM: They do. They have very strong relationships with

the Japanese government. The Japanese IP office provides

a lot of support and advice. The Australians do as well. IP

Australia provides training and swap programs. Theres a

lot of interest from other countries but those are probablythe two countries that are most active in providing direct

support.

EE: How does the environment for IPR differ between

Indonesia and Asia in general?

BM: In terms of the Asia region generally, it really isnt

that different. In my experience, similar issues come up

in each jurisdiction. Its sort of like when you look at a

music equalizer on an amp. There are the same issues

in each country, just a different mix, some factors are

stronger than the others. And that can fluctuate according

to time.

EE: Do you think the IPR issues in Indonesia have

deterred investment or, due to similarities in the region,

these issues have had little effect on determining whereto invest?

BM: Not so much lately, but previously, absolutely.

Intel was looking to open a chip fabrication plant and

Indonesia was very quickly dropped off the list because

of IP. Eventually they built a $2 billion fabrication plant

in Vietnam. So, yes I think so. The more serious risk now

is that Indonesia becomes an export point for counterfeit

and pirated goods rather than just a domestic market.

EE: What advice would you give companies to better

manage risks to their IPR?

BM: Be very careful. Be slow. Dont rush anything.

And get a really good understanding of the situation in

the country and how IP works before you launch with

exports, with new services or opening a presence here.

Have a good understanding of that. I suppose thats just

good business advice for anyone really. I find myselfoften saying just have an open mind. Be open to

different strategies. I sometimes hear the word kooky

- something that might seem unusual, that you wouldnt

dream of doing in your own developed jurisdiction.

Be open to those possibilities because they do often

work here. Also, I think if you are really committed,

be prepared to be a bit of a pioneer as well . There are

opportunities to drive progress and drive change here.

Thats our goal. That is one of our missions here - to

improve the general IP environment. To actually improve

the environment for the industry and for the IP sector.

We are always looking for people who are prepared topush the envelope a little bit because it works. Engage

the government, test judges a little bit, talk to the IP

office, just try things a little bit differently.

EE: What issues should AmCham tackle as an

organization that represents U.S. businesses here and

how can they best do this?

BM: I think what is very, very useful is the connection

that AmCham provides to the U.S. Trade Representative

(USTR). It really helps. I dont know if its more so here

than any other country, but the U.S. Trade Representative

has a lot of impact on people here. When the USTR says

something negative, people get really disappointed. The

reason I mention this is because I want to point out that

people take notice. The Trade Representative is always

looking for practical examples of things that can be done,

that are practical, sensible, realistic and achievable. Thereis a real opportunity for American businesses to help

develop the IP environment themselves. I think thats the

number one thing, that connection. In terms of other things

AmCham can be doing, continue to provide counseling.

What they do right now is fantastic, which is provide a

contact point, a sounding board, access to resources,

access to Rouse and other consultants, help with access to

the IP office and ministries, etc. So it works both ways.

EE: Are there any cases you can cite that exemplify the

challenges to protecting IPR in Indonesia, especially

with regards to litigation, enforcement, etc.?

BM: One is a very simple case that we just finished last

year of pushing the envelope a little bit to see if we

Be open to different strategies...be prepared to be a bit of a pioneer as well.

There are opportunities to drive progress and drive change here...We are always

looking for people who are prepared to push the envelope...

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could develop the law a little further.

Black Diamond, an Australian

company, makes buffing pads for

polishing cars. Their product wasbeing completely knocked off

here in Indonesia, right down to

the packaging with the Made in

Australia label on it. The pirate

that was making these products had

applied to register the trademark.

The trademark office ended up

rejecting the trademark application.

But this rogue then turned around

and sued the trademark office for

wrongfully rejecting his mark and

also sued the Australian company.It was nonsense really. In the end,

our client turned around and sued

him for trademark infringement.

What was unusual about this case

is that the court let our client do

so. It was the first time that the

Commercial Court has allowed a counter-claim like

this. They won the case. The cancellation of his

mark was upheld and he was ordered to pay $20,000

in damages. This doesnt sound like much but it is a

massive damages award, the second highest for an IP

case so far in Indonesia.

Although I cant mention the company, there isanother really good example to give you an idea of

how different it is. What has historically happened here

over time is the registration of descriptive trademarks.

An example of a descriptive trademark is Apples for

apples or Tea for tea. Anywhere else in the world,

you cant register these because a trademark stops

people from using that word to descr ibe their product.

Over time, the practices of the Trademark Office have

changed. They used to treat English words as having

no meaning. You didnt look at English words and go

ah, well that means whatever it means in Indonesia.

They would simply just look at it and say thats aninvented word even if it was obvious to an English

speaker that it was not. That has changed over time but

whats happened is you now have all these descriptive

marks that the Trademark Office would now reject but,

because they are there and they continue to be renewed,

they still cause a bit of a problem. We had an American

client that had a problem with one of their products.

For the sake of the story, lets just say it was chocolate

and they had called their product All American

Chocolate. A big Indonesian company had registered

and was using Chocolate. The Indonesian company

threatened them with an infringement action which is

just ridiculous. Rather than these two competitors going

head to head, the American company just decided to go

with a different name in the end.

Its a really good example of just how different it really

is and how prepared you have to be to encounter things

that are quite unusual. Trademarks last for 10 years, and

if you renew a mark, there is no examination or ability to

cancel the mark. The government is very strict rule-of-

law here. They follow rules down to the word. There is

no bending the rules. There is no ignoring cases, whichmight surprise people here. Even the Trademark Office

acknowledges they are kind of stuck. They do their best

to try to work around it, but at the end of the day, the law

is the law, and until that changes, there is nothing they

can do about it.

Pirated DVDs sold at a mall in Jakarta.

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Managing Residential Security and Peace of Mind

By Marilyn Ardipradja

It is fair to say that most of us upon arriving in

Indonesia are suddenly faced with a domestic setting

unlike that in which we grew up. Not only do Indonesian

apartments and houses have more perimeter walls, square

footage and marble interiors than your average American

home, but the concept of having and managing house

staff is not common to the average socialization process.

The wealthy, the long-term expats and those from the

Jane Austen-era might be used to it, but for the rest of us,

it can take some adjustment. And it can be intimidating.

Whether live-in or -out, relative strangers will be sharingyour living space and have access to very private parts

of your familys life. Some families completely reject

the idea of taking staff and living in close proximity to

local neighborhoods, often citing associated hassles and

security issues. But for those who are considering living

in the community, learning exactly how housekeepers

and your neighbors fit in with your daily home life only

requires a bit of flexibility and is a great investment of

your time. While in your home country, you instinctively

take precautions to ensure the security of your home and

family; here, adding a few new steps to your regular

personal security audit can make a huge difference inwhat you make of your Indonesian experience. And

down the road, if you are lucky, you will find that your

family will have grown by a few members and these

relationships will last well beyond your stay here.

To assist with this learning curve, Colliers International

Indonesias Expatriate Services provide real-world

knowledge and practical advice when considering your

residential options and the new environment you will be a

part of.

Your HomeYour home provides a physical

barrier for your protection. Most

upper class homes in Jakarta and

those usually rented by expatriates

typically have high fences and gates

facing the street, 20-30 foot walls

around the remaining 3 sides, often

topped by broken glass, barbed wire

or spikes, and 24-hour guards or

watchmen.

High fences surrounding

your property do discourage

theft and do protect your privacy,

but keep in mind that they alsomake it difficult for neighbors to

see if someone is breaking into

your home. Many homes have

metal grilles on the windows to discourage unwanted

entrance, however a disadvantage is that they also make

exiting in the case of fire more challenging as well.

One of the most effective means of protection is to

always maintain harmonious relationships with your

domestic staff and neighbors. Make a donation for the

communitys Lebaran and Independence Day activities

as requested by your RT (neighborhood head), and when

appropriate, join in the various activities that are organized

by your local community. By becoming a member of your

community and demonstrating an open, friendly attitudeto your Indonesian neighbors, you can be assured that

your safety will become a community concern. It has

been observed that those expatriates who have had poor

relationships with their domestic staff are more likely to

become victims of theft. One of the many advantages of

developing good relationships with your neighbors is that

they are likely to alert you as to when you may be starting

to have problems with your domestic staff.

It is recommended that you take photocopies of the

identity cards (KTP) of your domestic staff and also have

photographs of them on file. Be sure to obtain the details

of their next of kin and home address. When employingstaff you should have their references verified. It is also

a good idea to visit them at their house to verify their

place of domicile. It is also crucial that you store the

KTP copies and other details in your home safe or better

yet, at the office. These measures serve to lower the

temptation for any staff facing a monetary difficulty to

steal from you.

When choosing your home in Jakarta various security

aspects should be considered. Many expatriates choose

to live in an apartment due to the extra security provided.

In our home countries we tend to

choose to live in areas where the

residents have a lifestyle similar to

our own and for this reason many

newcomers tend to select houses

in areas where other expatriates

live. Try to avoid a house sharing

a common fence with a kampung

(urban village) or a vacant lot. Make

sure that there are alternate routes

to and from the residence and look

for a house which does not draw

attention to itself or its occupants.

Left: A high wall deters intruders from

breaking into a home in Jakarta.

Opposite: A jaga watering plants outside

his employers home.

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There are things that you can do to make your present

house more secure:

The outer perimeter fencing and entry gates of yourhome must always be your first consideration. Fences

should have anti-climb features such as broken bottles/

glass, barbed wire, etc. affixed to the top and there

should be no easy points of access from adjoining

buildings into your property.

Gates should have the same or similar features to the

fencing and should be kept locked except when you or

your guests are entering or leaving.

Make sure that your ground floor windows can be

secured either by lockable shutters or internally fitted

deadlocks.

Entry doors to the house should be solid core, with

three internal hinges and viewing cylinders installed.

Have security chains installed as well.

Consider getting a dog. Apart from its value as a pet,

dogs are an excellent deterrent to would be intruders.

Consider your outdoor lighting. From a security

standpoint, spotlights fitted to the house and shining

toward the perimeter of the property are always the

best choice. Would be intruders are less likely to walkinto the light. To further enhance the effectiveness of

this style of lighting have them activated by motion

detector. This has the added benefit of making any

intruder think that he has been caught, making him

more likely to flee than continue with his plans.

For your peace of mind, have a security consultant do

a security audit on your home. They will do a thorough

audit of your premises and provide you with a written

report on the residence along with a set of security

improvement recommendations if required.

Guards

Most expatriates have a watchman orjaga to guard their

home. They are often referred to as day jaga or night

jaga, each working a 12-hour shift. Some people choose

to have only a night watchman, while others may choose

to have a jaga during the day as well. Thejagas duty is to

ensure the safety of the house, the residents and household

contents. He also opens the gate for your car when you

leave and arrive home, and deals with people coming to

your gate. Various people may come to your gate, trying

to sell you something or requesting a donation, legitimate

or otherwise. Your jaga should screen these people

and, in accordance with your policy, either turn them

away or inform you of their

presence. Your jaga should

never allow anyone to enter

your gate without your specificpermission. It is much easier to

turn an undesirable person away

if they have not yet entered

your yard. The day jaga often

doubles as a gardener and does

routine pool maintenance. The

nightjaga does not necessarily

stay awake all night to watch

over the house, but is expected

to wake up in case of trouble.

He should at least be sleeping

in a strategic position on the front patio or in the garage.

In order to help thejaga stay awake, its a good idea to put

a small television set or a radio in the garage or other ap-

propriate location.

The monthly fee that you pay to your RT (neighborhood

head) for garbage collection and security covers the sala-

ries of your local hansip. This term comes frompertahanan

sipil, which means civilian security. The men who make

up the hansip team have very minimal training and their

primary function is to patrol the neighborhood regularly to

check for problems. If a burglary or serious incident should

occur, the hansip can contact the police for you.

If you are having a large party and anticipate some traf-fic congestion due to your guests cars, you should report

to your RT and he will arrange for some hansip to assist in

traffic control as well as to watch your guests cars during

the evening. You will need to pay a fee for their services

and it is customary to provide them with coffee and some

snacks.

Some homes are guarded day and night by teams of

satpam who are trained in guard duties and are distinguish-

able by the fact that they wear official looking uniforms.

The term satpam is an abbreviation of SatuanPetugas

Keamanan, which means Security Officers Unit. Satpam

are considered to be more professional thanjaga and han-sip as they have participated in a training program and are

licensed by the local government. The duty of asatpam is

to ensure the safety of your family especially in any dan-

gerous situation and to open the gate and screen visitors to

your home. They are not expected to assist with domestic

duties or pool work. Satpam are hired through an agency

or security consultant company. If you have a satpam

there is no need for you to employ ajaga.

Instructions to staff

It is important that your household staff understand your

policies regarding security therefore you need to give

them very clear instructions. Tell yourjaga orsatpam and

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household staff that under no circumstances is anyone to

be let into the house or even the yard without your presence

and permission, even if they are expatriates. Well-intended

staff will sometimes allow strangers into homes for the fearof causing insult. There are many documented cases where

foreigners have stolen goods from houses in recent years. If

you have not given instructions for specific individuals to

be allowed into your home during your absence, then they

are not to be admitted. Your staff should be made aware

that they are responsible for the house and its contents in

your absence and should be wary of strangers and exercise

caution and common sense in all situations. Give strict

instructions to your household staff that they should never,

ever give anything that belongs to you to someone without

your specific prior instructions. If they are unsure, advise

them to call you on your hand phone.

Some basic instructions for your staff should include

keeping the gate locked at all times, never leaving the house

unoccupied, monitoring workmen in the house, turning

on outside lights at dusk. Specific instructions need to be

given regarding how to deal with strangers coming to the

gate, and how to answer phone calls. Stress to your staff

that they should never give out any personal information

about yourself or your family.

Staff should also be instructed how to deal with

emergencies such as fire, floods, electrical blackouts,

plumbing problems, or roof leaks as well as medical

emergencies involving any member of the family(including pets).

A pembantu washing dishes.

Marilyn Ardipradja is an Orientation Consultant with Colliers International Indonesia, Expatriate Services.

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21Jul-Dec

Managing Environment, Health and Safety Risks

in the Chemical IndustryCase Study: Responsible Care & PT. Nippon Shokubai Indonesia

Courtesy of PT. Nippon Shokubai Indonesia

On December 3, 1984, over 500,000 people wereexposed to a poisonous cloud of methyl isocyanate (MIC)

gas released during an explosion at Union Carbides pes-

ticide plant in Bhopal, India. Approximately 8,000 died

in that first week, with thousands more dying in the en-

suing months and hundreds of thousands suffering from

severe, chronic health complications as a result of inhal-ing the fatal gas.

In response to the tragic Bhopal chemical accident

and to address concerns over the safety of chemical

production, distribution and use, the chemical industry

convened in 1985 and conceived the Responsible Care

(RC) initiative. The program is a global voluntary ini-

tiative monitored and guided by the International Coun-

cil of Chemical Associations (ICCA) that strives to im-

prove Environment, Health and Safety (EHS) standards

in the chemical industry. Responsible Care encourages

transparency in its operations and communication with

stakeholders. Implemented in 53 countries, the programis adapted by each national association to accommodate

different cultural, economic and regulatory environments.

Responsible Care has eight fundamental features that are

adopted by all associations. According to their website,

these features are:

1. A formal commitment by each company to a set

of guiding principles - signed, in most cases, by

the Chief Executive Officer;

2. A series of codes, guidance notes and checklists to

help companies fulfill their commitment;

3. The development of indicators against which im-

provements in performance can be measured;4. Open communication on health, safety and envi-

ronmental matters with interested parties, both in-

side and outside the industry;

5. Opportunities for companies to share views and

exchange experiences on implementing Respon-

sible Care;

6. Consideration of how best to encourage all mem-

ber companies to commit themselves to, and par-

ticipate in, Responsible Care;

7. A title and logo which clearly identify national

programs as being consistent with, and part of, the

Responsible Care concept;8. Procedures for verifying that member companies

have implemented the measurable or practical ele-

ments of Responsible Care.

Chaired by Urai Rogers, President Direc-

tor of PT. Dow Chemical Indonesia and AmCham

1st Vice-President, the Indonesian arm of Respon-

sible Care has been active since 1997 and today has

over 80 members. Known as Komite Nasional Re-

sponsible Care Indonesia, its membership also in-

cludes AmCham members PT. Monagro Kimia, PT.Air Products Indonesia and PT. DuPont Indonesia.

In 2009, PT. Nippon Shokubai Indonesia (NSI) won

the RC Platinum Award for best performance in reach-

ing and maintaining RC EHS indicators. Opening its

first plant in Indonesia in 1998, NSI produces acrylic

acid, ethyl acrylate, n-butyl acrylate, and 2-ethylhexyl

acrylate. NSI has voluntarily implemented the princi-

ples of Responsible Care to manage a variety of risks

inherent in the production and distribution of chemical

substances. NSI, which has won accolades for their

progress in implementing these principles, is an excellent

example of how Responsible Care can be used to manage

a variety of industry risks.During product development, NSI considers how to

align its products over the entire life cycle of the product

with Responsible Cares elevated EHS standards. Their

priorities for implementing EHS principles are:

Consider the environmental impact and work on

environmental protection over the entire life cycle

of a product from development to waste.

Assure the safety of employees and local communities

by pursuing accident- and disaster-free operations.

Consider the health of exposed persons such as

employees, distributors, and consumers, by ensuring

the safety of chemical products throughout all

NSI plant in Indonesia

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22 Jul-Dec

phases - raw materials, intermediates, and final prod-

ucts.

Responsible Care (RC) Activities

NSI has implemented Responsible Care through the fol-

lowing activities:

1. Community Awareness & Emergency Response

NSI has implemented the community awareness com-

ponent of RC by promoting an open dialogue with

stakeholders and adequately disclosing information.

The company holds an annual community open day for

students and community members where personnel ex-

plain NSIs production processes, impacts, and disaster

or accident prevention, including emergency response.

Other activities include presenting an EHS exhibition,

communicating and working closely with the Indone-sian government to improve EHS standards, and active-

ly participating in RC Indonesia activities.

Practicing emergency preparedness and response is

critical to ensuring personnel respond appropriately in

an emergency. NSI has developed and practices disaster

prevention schemes to ensure that emergency response

teams are ready at all times. This includes scenarios

RC Community Open Day for students

Emergency Response Team conducting a fire drill at NSI plant

site

where accidents occur on holidays or at night when

there are fewer personnel available to respond. The

company also periodically practices drills for emergen-

cy scenarios that include plant accidents, earthquakesand tsunamis, fire, riots, and transportation accidents.

Personnel are trained to extinguish fires and handle

chemical spills.

All emergency drills are reviewed by evaluators during

the exercise to identify weaknesses, suggest improve-

ments and highlight strong points. Teams openly dis-

cuss the drills upon completion.

2. Process Safety

To ensure that production processes can run smoothly

and safely, NSI applies Process Safety Management

with the following key elements: Process Knowledge

t& Documentation; Process Hazard Analysis; Manage-

ment of Change (change of technology, change of fa-

cility, organizational changes that may impact process

safety);Process and Equipment Integrity; Incident In-

vestigation; Training & Performance; andPredictive &

Preventive Maintenance. These elements are currently

being implemented to prevent explosions, fire hazards,

and chemical exposure to the environment in the event

of an accident.

3. Employee Health Safety

A commitment from top management and employee

awareness and morale are key points in implementing

NSIs Employee Health Safety code. To achieve the

companys target of zero industrial injuries and zero

lost work days, NSI continually works to reduce risk in

the workplace by conducting:

Hazard Identification, Risk Assessment and Risk

Control (HIRARC)

KikenYochi (Hazard Prediction Training) & Sokuji

Kiken Yochi (On-the-Spot or Real Time Danger Pre-diction Training)

Hiyari Hatto (Prevision of Danger or Near Miss)

Safety Patrol

EHS Committee (Led by the Plant Manager)

EHS Internal & External Audit

5S (Seiri, Seiton, Seiso, Seiketsu, Shitsuke or in Eng-

lish, Tidiness, Orderliness, Cleanliness, Standardiza-

tion, Discipline)

Kaizen (Continuous Improvement)

HO-REN-SO (Communication Management in Com-

pany)

Cleaning Day (Led by President Director)

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24 Jul-Dec

Implementation of OHSAS 18001:2007 is also important

in identifying hazards, assessing risk and reducing

hazard levels in all working activities until they reach

appropriate safety standards. Additionally, a healthy workenvironment is maintained by periodically measuring

industrial hygiene - noise, vibration, heat stress,

illumination, chemical exposure, and ergonomic design

- and encouraging annual medical check-ups to ensure all

employees can work comfortably and in good health.

4. Polution Prevention

Technology for Environmental Protection

The production of acrylic acid and ester generates

wastewater and waste oil as a by-product. To treat bothwastes, NSI has installed two high efficiency wastewater

treatment systems: 1) Liquid Catalytic (LC) Oxidation

System and 2) Waste Liquid Incinerator System (WLIS).

They both work through an incineration and oxidation

reaction, perfectly burning 100% of the waste oil and

reducing chemical oxygen demand (COD) levels in

wastewater to below 100 ppm. NSI also uses exhaust

gas treatment through a Waste Gas Catalytic Incineration

System (WGCIS). In the WGCIS, all waste gas from

production processes is oxidized by a catalyst.

Reusing of Wastes

chemicals. One-hundred percent of NSIs hazardous

waste is used by the cement industry as alternative

fuel and raw materials, while non-hazardous waste

such as scrap metal, waste paper and used packaging

is sent to collectors for reuse after self-treatment. NSI

has constructed a fertilizer unit to utilize general waste

such as food leftovers and grass cuttings to produce

fertilizer. This fertilizer is used for the companys

greening activities and is distributed to the surrounding

community.

NSI Employee packaging fertilizer at an NSIfertilizer plant.

All solid waste

NSI generates is

organized by 3-R

(Reduce, Reuse

and Recycle)

p r i n c i p l e s .

NSI is trying

to optimize its

hazardous waste

reuse in order to

eliminate landfill

use for these

Decreasing CO2

NSI has undertaken

several steps to

decrease CO2

in plant process

activities. From

2005 to 2009,

CO2 levels have

been successfully

reduced by 44%. This has been accomplished by

changing fuel from oil to natural gas, investing in

electric power cogeneration (used as a substitution for

the current supply, which is produced by the government

from coal), process catalyst exchange (for optimizing

product results and minimizing byproducts) andprioritizing the goal of reducing CO2 levels each year

in accordance with ISO 14001:2004.

5. Distribution

In order to eliminate chemical safety problems during

distribution from plant site to consumer, NSI uses Safety

Data Sheets prepared in accordance with the Globally

Harmonized System to provide appropriate information

to the user regarding risk and toxicity. All drivers and

co -drivers from transporters receive training on how to

use Safety Data Sheets (SDS), safely handle chemicals

and fight fires. NSI has also established a Distribution

Management System for transportation which includes

the following:

Prepare and carry a Transportation Emergency

Card and emergency response tools

Conduct Safety Training for Transporters and

issue a Transporter Card Pass Permit

Audit Transporters

Establish a Transporter Safety Patrol

Conduct Transporter Risk Assessment Analysis

Comply with Regulations (International, National

and Company)

Present an annual Best Transporter Award

NSI also has a Product Transportation Emergency Team

equipped with the appropriate tools for responding to a

product transportation accident.

6. Product Stewardship and Security

NSI has addressed this code by implementing the

aforementioned activities. These address protecting

people, property, products, information and processes,

including security against potential terrorist attacks.

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Consumer visits, surveys and supplier audits provide

the company with information on customer satisfaction

with quality, delivery and information on the safe

handling of products. To address cyber security, allimportant data is sent to and stored in a server secured

in a fire and waterproof steel box.

Awards

In recognition of its efforts to improve ESH, the

Ministry of Environment has presented NSI with the

PROPER Award for companies at the green level for

four consecutive years since 2005. Since 2002, NSI

continues to receive the Zero Accident Award from the

Department of Man Power. Responsible Care Indonesia

gave NSI their biannual award in 2007. As previouslymentioned, the company also received RCs sole

Platinum Award, its highest, in 2009 for outstanding

implementation of the RC codes.

PT. Nippon Shokubai Indonesia (NSI) is a foreign investment which has been certi fied ISO 9001; ISO 14001; OHSAS

18001 and Responsible Care with the Nippon Shokubai Co., Ltd., and Toyota Tsusho Corporation. The company is

headquartered in Japan. NSI is the first foreign petrochemical company in South East Asia to produce Acrylic Acid

& Acrylic Esters and has been operating in Indonesia since 1998.

Mr. Y. Hirano, CEO & President of NSI, receiving the RC

Platinum Award from Vice Minister of Industry Mr. Alex SWRetraubun.