Indonesia's archipelagic character means that its seas are a strategic resource of immense importance. The seas function as a means to unite the nation, as a means of transportation, as a means of defence and security, and as a means of diplomacy. They are also a source of important natural resources that help to sustain the nation's economic well-being. Guarding the seas is therefore an important part of guarding Indonesia's state sovereignty. Indonesia has the sovereign right to regulate, control, protect and manage its sea territory in order to safeguard its national interest. But it cannot do this unless it has in place a comprehensive and integrated maritime security system. This is the setting in which Indonesia established, and then injected new life into, the Maritime Security Coordinating Board.

BACKGROUND

Indonesia is situated at a strategic crossroads (see Map 1.1 on page 2 and Map 2.1 on page 29). About 40 per cent of the world's sea trade is carried on its sea lanes. Of particular importance is the high volume of shipments of crude oil transported through Indonesian seas. The total value of trade passing through Indonesian archipelagic sea lanes amounts to US$300 trillion annually in the Malacca Strait, US$40 trillion annually in the Lombok Strait and US$5 trillion annually in the Sunda Strait. Indonesia's archipelago is also of great importance to the world's climate. Streams from the Pacific and Indian Ocean meet in the archipelago, where they not only create a rich natural ecosystem but also, because of the mixing and circulation of waters, have an important though still unquantified effect on global climate change.

Responsibility for maritime affairs is currently spread across a number of government institutions: Customs is under the authority of the Directorate General of Customs and Excise in the Ministry of Finance; immigration is the domain of the Directorate General of Immigration in the Ministry of Justice and Human Rights; fisheries are the under the authority of the Ministry of Marine Affairs and Fisheries; mangrove forests are the responsibility of the Ministry of Forestry; and so on.