Indonesia Port Security

International Standards for Success

by Scott M. Bernat

dependent 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 commitment to 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 condence in commercial trade and promotes business opportunity and growth. Challenges The criminal and terrorist threat to ports and the maritime supply chain remains a global constant and is routinely highlighted in the media. Corruption serves to fuel the re 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 ow and condence 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 justication 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 specically designed, based on existing local threat conditions and environment, to enhance security practices and procedures for and between ships and port facilities involved in international trade. These include the routine

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www.belgian-navy.be

Indonesia, rich in natural and man-made resources, is

An Indonesian Navy commando guards a British Royal Navy frigate at Tanjung Priok port in Jakarta.

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 concepts to 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 condence is the establishment, application and management of effective supply chain security procedures. In 2007, the International Organization for Standardization (ISO) published a series of 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 in international maritime trade, to develop, establish and maintain an effective security program. These include both private companies involved in fee-based ISPS Code

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 worldwide maritime 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 Pacic 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 fastpaced maritime commercial shipping industry, focused on the import and export of in-demand commodities, requires high condence 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 28000 standards.

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 ommon practice within Indonesian businesses is to recruit new personnel on the basis of a curriculum vitae (CV) provided by the job applicants themselves. Very seldom is any of the information provided on the applicants CV veried by sources knowledgeable of the applicant or validated by queries to former places of work, education institutions, or even with local governments issuing citizen identication cards. This practice, or lack of proper due diligence in conrming 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 ofcials and 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 identication (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)

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and the name and position of issuing ofcial. 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 such fraudulent KTP, and as such any query to the appropriate issuing ofce can at best only respond that the KTP, although with a valid issuing ofce 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, conrmation of authentic KTP is absolutely necessary.

Indonesia on the fraudulent diploma mills that continue to exist to this day. Not only can the graduation certicate 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 overqualied 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 nal assignment only) and either the very rare laudatory comments or strictly conrmation of the period of employment with the applicable rm, which I call a neutral reference. The usual situation within Indonesia is that

...lack of proper due diligence in conrming basics of new employees can lead to considerable business risk to employers once contracts or permanent employment have been extended to new job applicants.
Another highly desirable background aspect, particularly for applicants for nancial 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 difcult to apply within the Indonesian court system and banks remain reluctant to share customer information with competitors as they would have to do if sharing individuals defaulting on credit card debt. As a result, individuals can obtain a long chain of unpaid credit card debt, a big red ag 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 difcult under current manpower regulations, so employers tend to terminate with neutral references and salary payoffs to avoid regulatory problems. Neutral references are a denite warning sign. Validations can be made by discreet queries to a subjects former peers and former personnel division wherein no interviewee is required to put comments in writing. By highlighting some of the issues involved with preemployment 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 rms 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 rm 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.

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Protecting Intellectual Property Rights

Interview with Brett McGuire, Country Manager, Rouse
Rouse is a global intellectual property (IP) consultancy with ofces 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 difcult 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 signicant risk. If you dont understand those differences, then you can nd 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 problem we 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 nd 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 indeed litigation 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 x. EE: Rouse has been active in Indonesia since 1997. How has protection of IPR changed over the last 13 years? BM: It has improved signicantly. 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 ofce 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 signicant changes is that the various ministries and government agencies that are responsible for IP enforcement have become self-aware. They are aware of 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, that shows 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 really now 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 ofce 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 probably the two countries that are most active in providing direct support.

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 myself often 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 to push 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.

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...
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 uctuate 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 where to 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 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. There is 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 ofce 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 nished last year of pushing the envelope a little bit to see if we

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could develop the law a little further. Black Diamond, an Australian company, makes buffing pads for polishing cars. Their product was being 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 Pirated DVDs sold at a mall in Jakarta. so. It was the first time that the Its a really good example of just how different it really Commercial Court has allowed a counter-claim like is and how prepared you have to be to encounter things this. They won the case. The cancellation of his that are quite unusual. Trademarks last for 10 years, and mark was upheld and he was ordered to pay $20,000 if you renew a mark, there is no examination or ability to in damages. This doesnt sound like much but it is a cancel the mark. The government is very strict rule-ofmassive damages award, the second highest for an IP law here. They follow rules down to the word. There is case so far in Indonesia. no bending the rules. There is no ignoring cases, which Although I cant mention the company, there is might surprise people here. Even the Trademark Ofce another really good example to give you an idea of acknowledges they are kind of stuck. They do their best how different it is. What has historically happened here to try to work around it, but at the end of the day, the law over time is the registration of descriptive trademarks. is the law, and until that changes, there is nothing they An example of a descriptive trademark is Apples for can do about it. apples or Tea for tea. Anywhere else in the world, you cant register these because a trademark stops people from using that word to describe 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 an invented 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.

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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 sharing your 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 t in with your daily home life only requires a bit of exibility 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 in what you make of your Indonesian experience. And down the road, if you are lucky, you will nd 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 Home Your 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 also make it difcult 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 re 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 attitude to 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 le. Be sure to obtain the details of their next of kin and home address. When employing staff you should have their references veried. 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 ofce. These measures serve to lower the temptation for any staff facing a monetary difculty 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 your home must always be your rst consideration. Fences should have anti-climb features such as broken bottles/ glass, barbed wire, etc. afxed 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 oor windows can be secured either by lockable shutters or internally tted 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 tted to the house and shining toward the perimeter of the property are always the best choice. Would be intruders are less likely to walk into the light. To further enhance the effectiveness of this style of lighting have them activated by motion detector. This has the added benet of making any intruder think that he has been caught, making him more likely to ee 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.

away or inform you of their presence. Your jaga should never allow anyone to enter your gate without your specic permission. 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 night jaga 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 the jaga stay awake, its a good idea to put a small television set or a radio in the garage or other appropriate location. The monthly fee that you pay to your RT (neighborhood head) for garbage collection and security covers the salaries of your local hansip. This term comes from pertahanan 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 trafc congestion due to your guests cars, you should report to your RT and he will arrange for some hansip to assist in trafc 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 distinguishable by the fact that they wear ofcial looking uniforms. The term satpam is an abbreviation of Satuan Petugas Keamanan, which means Security Ofcers Unit. Satpam are considered to be more professional than jaga and hansip as they have participated in a training program and are licensed by the local government. The duty of a satpam is to ensure the safety of your family especially in any dangerous 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 a jaga.

Guards Most expatriates have a watchman or jaga 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. The jagas 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

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 your jaga or satpam 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 fear of causing insult. There are many documented cases where foreigners have stolen goods from houses in recent years. If you have not given instructions for specic 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 specic 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. Specic 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 re, oods, 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.

Managing Environment, Health and Safety Risks in the Chemical Industry

Case Study: Responsible Care & PT. Nippon Shokubai Indonesia
Courtesy of PT. Nippon Shokubai Indonesia

n December 3, 1984, over 500,000 people were exposed to a poisonous cloud of methyl isocyanate (MIC) gas released during an explosion at Union Carbides pesticide plant in Bhopal, India. Approximately 8,000 died in that rst week, with thousands more dying in the ensuing months and hundreds of thousands suffering from severe, chronic health complications as a result of inhaling 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 initiative monitored and guided by the International Council of Chemical Associations (ICCA) that strives to improve 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 program is 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 Ofcer; 2. A series of codes, guidance notes and checklists to help companies fulll their commitment; 3. The development of indicators against which improvements in performance can be measured; 4. Open communication on health, safety and environmental matters with interested parties, both inside and outside the industry; 5. Opportunities for companies to share views and exchange experiences on implementing Responsible Care; 6. Consideration of how best to encourage all member companies to commit themselves to, and participate 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 elements of Responsible Care.

Chaired by Urai Rogers, President Director of PT. Dow Chemical Indonesia and AmCham 1st Vice-President, the Indonesian arm of Responsible Care has been active since 1997 and today has over 80 members. Known as Komite Nasional Responsible Care Indonesia, its membership also includes 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 reaching 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 principles 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

NSI plant in Indonesia

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

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phases - raw materials, intermediates, and nal products. Responsible Care (RC) Activities NSI has implemented Responsible Care through the following activities:

where accidents occur on holidays or at night when there are fewer personnel available to respond. The company also periodically practices drills for emergency scenarios that include plant accidents, earthquakes and 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 improvements and highlight strong points. Teams openly discuss 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; Management of Change (change of technology, change of facility, organizational changes that may impact process safety); Process and Equipment Integrity; Incident Investigation; Training & Performance; and Predictive & 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 Identication, Risk Assessment and Risk Control (HIRARC) KikenYochi (Hazard Prediction Training) & Sokuji Kiken Yochi (On-the-Spot or Real Time Danger Prediction 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 English, Tidiness, Orderliness, Cleanliness, Standardization, Discipline) Kaizen (Continuous Improvement) HO-REN-SO (Communication Management in Company) Cleaning Day (Led by President Director)

RC Community Open Day for students

1. Community Awareness & Emergency Response NSI has implemented the community awareness component 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 explain 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 Indonesian government to improve EHS standards, and actively 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

Emergency Response Team conducting a re drill at NSI plant site

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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 work environment 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 both wastes, NSI has installed two high efciency 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 All solid waste NSI generates is organized by 3-R (Reduce, Reuse and Recycle) principles. NSI is trying to optimize its hazardous waste reuse in order to NSI Employee packaging fertilizer at an NSI eliminate landll fertilizer plant. use for these 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.

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) and prioritizing 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, all important 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 previously mentioned, the company also received RCs sole Platinum Award, its highest, in 2009 for outstanding implementation of the RC codes.

Mr. Y. Hirano, CEO & President of NSI, receiving the RC Platinum Award from Vice Minister of Industry Mr. Alex SW Retraubun.

PT. Nippon Shokubai Indonesia (NSI) is a foreign investment which has been certified 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.