VZCZCXRO9821
RR RUEHCHI RUEHDT RUEHHM
DE RUEHJA #2610/01 2610005
ZNR UUUUU ZZH
R 180005Z SEP 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 6305
INFO RUEAWJB/DEPT OF JUSTICE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHKO/AMEMBASSY TOKYO 0809
RUEHBJ/AMEMBASSY BEIJING 4318
RUEHBY/AMEMBASSY CANBERRA 1188
RUEHUL/AMEMBASSY SEOUL 4198
RUEAIIA/CIA WASHDC

UNCLAS SECTION 01 OF 02 JAKARTA 002610 
 
SIPDIS 
 
STATE FOR U/S JEFFERY 
STATE FOR A/S HILL, EAP/MTS, EB/IFD, INL/C, INL BOULDIN 
DOJ FOR AAG BRUCE SWARTZ, OPDAT FOR LEHMANN/ALEXANDRE 
MCC FOR AMBASSADOR DANILOVICH AND MORFORD 
DEPT PASS USTR 
TREASURY FOR IA - BAUKOL 
USAID FOR ANE/AA WARD 
 
SENSITIVE 
SIPDIS 
 
AIDAC 
 
E.O. 12958: N/A 
TAGS: PGOV KMCA KCOR ECON KJUS ID
SUBJECT: U/S JEFFERY BRIEFED ON ANTI-CORRUPTION REFORM SUCCESSES, 
WAY FORWARD 
 
REF A) JAKARTA 13603 (CC decision); B) JAKARTA 1391 (Indonesia 
debates reform of ACC) 
 
JAKARTA 00002610  001.2 OF 002 
 
 
¶1.  (SBU) SUMMARY: Indonesia's Corruption Eradication Commission 
(KPK) leaders told visiting Under Secretary for Economic, Energy, 
and Agricultural Affairs Reuben Jeffery III September 10 that they 
have "caught some big fish" (e.g. former governors), but 
anti-corruption reform will take decades.  They also stressed that 
institutional reform throughout the judicial sector is a top 
priority.  U/S Jeffery expressed strong support for the KPK and 
anti-corruption reform in Indonesia, noting the significant progress 
the KPK has made in its four-year tenure.  With MCC Threshold 
support, the KPK is developing its institutional foundation and 
setting a strategic direction for anti-corruption reform in 
Indonesia.  End Summary. 
 
KPK Making Progress and "Catching Big Fish" 
------------------------------------------- 
 
¶2. (U) KPK Commissioners Erry Riyana and Amien Sunaryadi briefed U/S 
Jeffery on the KPK's tasks, authorities, organizational structure, 
challenges, needs, and strategic plan.  The KPK, an independent 
institution, leads anti-corruption reform in Indonesia.  Riyana said 
that the KPK selects cases to prosecute based on three criteria: 
cases involving law enforcement and state officials; cases 
generating significant public concern; and cases with losses to the 
state over 1 billion Rupiah ($106,000).  Addressing critics' 
accusation of the KPK being selective in its investigations, Riyana 
said that the KPK does not have that "luxury," although he did note 
that some cases take longer to investigate based on the complexity 
of the case and the ease of obtaining evidence.  Riyana stated that 
the KPK has "caught some big fish," including two former governors, 
a minister, and Supreme Court officials. 
 
Mandate - Resource Gap Still Wide, but Decreasing 
--------------------------------------------- ---- 
 
¶3. (SBU) U/S Jeffery noted the disparity between the KPK's broad 
mandate (coordinate, supervise, investigate, prosecute, prevent, and 
monitor) and its limited resources and staff.  The KPK currently has 
400 staff with plans to augment that number to 600 by 2008.  The KPK 
has 91 pre-investigators, 58 investigators, and 20 prosecutors. 
Erry Riyana and Syamsa Ardisasmita (KPK Secretary General) have 
previously told us that the KPK will prioritize personnel additions 
in these three areas where capacity is currently limited.  Through 
June 2007, the KPK is pre-investigating 54 cases, investigating 21, 
and prosecuting 16, recovering an estimated 50 billion Rupiah ($5.75 
million). 
 
¶4. (U) Commissioner Riyana praised cooperation between the KPK and 
its anti-corruption partners in the Attorney General's Office (AGO) 
and Indonesian National Police (INP).  Riyana stated that the KPK, 
AGO, and INP coordinate case loads, implicitly acknowledging the 
limited capacity within the KPK.  The KPK is designated to 
investigate and prosecute higher profile cases whereas the AGO 
handles lower profile cases and those cases outside of Jakarta.  The 
KPK's mandate permits it to investigate and prosecute cases from 
1999 onwards, whereas the AGO has no restrictions based on the time 
period of the case.  At present, the KPK prosecutes its cases in the 
Anti-Corruption Court and the AGO tries its cases in the district 
courts.  However, a December 2006 Constitutional Court decision 
mandates changes to this arrangement in order to provide more legal 
certainty to those being prosecuted (see reftels). 
 
 
Judicial Reform as a Top KPK Priority 
------------------------------------- 
 
¶5. (U) Commissioner Riyana highlighted judicial reform as a top 
priority in the broader anti-corruption reform agenda, starting with 
the Supreme Court.  Commissioner Sunaryadi highlighted the KPK's 
 
JAKARTA 00002610  002.2 OF 002 
 
 
focus on corruption prevention, stating that prevention is the key 
to ending cycles of corruption.  Riyana focused on institutions and 
processes, noting human resource, financial, information technology, 
and asset management systems as the keys to reducing corruption in 
the judicial sector.  Beyond raising salaries, Riyana highlighted 
institutional reforms regarding recruitment, physical 
infrastructure, and benefits. 
 
KPK Identifying Needs and Seeking Solutions 
------------------------------------------- 
 
¶6. (U) Riyana noted the KPK's three strategic priorities: improving 
legal certainty, improving the investment climate, and increasing 
state income.  Riyana also highlighted the current "needs" of the 
KPK, including: developing investigation methods, developing human 
resources systems, sharing information for investigations, and 
educating the public on anti-corruption reform.  Regarding 
impediments to prosecuting anti-corruption cases, witness protection 
is guaranteed under Indonesian law.  However, there is no provision 
for plea bargains. 
 
¶7. (U) Within the $55 Million MCC Threshold Program for Indonesia, 
$35 million is designated for anti-corruption. Approximately $11 
million of this funding is in support of the KPK's efforts to 
enhance its capability to investigate and prosecute corrupt 
high-level government officials.  As a broader comment on donor 
assistance, Riyana argued that there is too much focus on case 
management and training assistance.  He believes that donor 
assistance should target management systems, which will establish a 
stronger institutional framework for key judicial actors.  Although 
the pace of reform is at times slow, the Commissioners believe that 
President Yudhoyono is "more than 100 percent" committed to 
anti-corruption reform. 
 
¶8. (U) U/S Jeffery cleared on this cable. 
 
HUME