JAKARTA, INDONESIA - (August 22, 2003) Earlier today, the U.S. Trade and Development Agency (USTDA) awarded grants totaling $845,000 for two separate transportation security projects in Indonesia designed to help the country meet its transportation security objectives under the Secure Trade in the Asia-Pacific Economic Cooperation (APEC) Region, or STAR, Initiative. The U.S. Ambassador to Indonesia, The Honorable Ralph L. Boyce, signed agreements conferring the grants on behalf of USTDA.

The first USTDA grant, in the amount of $555,000, will provide technical assistance to the Port of Tanjung Priok to help develop an information technology (IT) and communications infrastructure to integrate and coordinate various government IT functions, including customs and immigration. The new infrastructure will be critical for increasing port security, facilitating trade efficiency, and reducing port transaction costs. The project will also help the port to target high-risk shipments and deter maritime piracy through electronic customs data reporting. Mr. Tjuk Sukardiman, Director General, signed the grant agreement on behalf of Indonesia's Directorate General of Sea Communication.

The second USTDA grant, totaling $290,000, will fund technical assistance to support a comprehensive security assessment at the Hang Nadim International Airport in Batam. The USTDA-funded consultant will identify the airport's security weaknesses and help to develop an overall security plan, including recommendations for personnel training, security equipment and procedures. Maintaining security at the airport will help Batam to preserve a safe environment for commercial activity, tourism, regional economic integration and foreign investment. Mr. Ismeth Abdullah, Chairman, signed the grant agreement on behalf of the Batam Industrial Development Authority.

Both the Port of Tanjung Priok and Hang Nadim International Airport projects are being developed under the framework of the STAR Initiative, which consists of a series of concrete measures to be taken in aviation and maritime transport to achieve the goals identified by the APEC leaders at their October 2002 Summit in Los Cabos, Mexico. These goals include screening people and cargo for security before transit, increasing en-route security on ships and airplanes, and enhancing security in airports and seaports, all while increasing the flow and efficiency of trade. Indonesia's location in the heart of Southeast Asia, its role as a regional transportation hub, and recent international security crises in the area have added greater importance to ensuring that the country achieves the transportation security objectives of the STAR Initiative.

The U.S. Trade and Development Agency advances economic development and U.S. commercial interests in developing and middle-income countries. The agency funds various forms of technical assistance, feasibility studies, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment. USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.

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