VZCZCXRO6904
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #2969/01 2961210
ZNR UUUUU ZZH
R 231210Z OCT 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 6771
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 1001
RUEHBJ/AMEMBASSY BEIJING 4420
RUEHBY/AMEMBASSY CANBERRA 1419
RUEHUL/AMEMBASSY SEOUL 4255
RUEAIIA/CIA WASHDC

UNCLAS SECTION 01 OF 02 JAKARTA 002969 
 
SIPDIS 
 
STATE FOR EAP/MTS, EEB/IFD/OIA, INL BOULDIN 
L/LEI FOR BUCHHOLZ 
DOJ FOR CRIM AAG SWARTZ 
DOJ/OIA FOR WARNER/ROBINSON 
DOJ/OPDAT FOR ALEXANDRE/LEHMANN/JOHNSON 
DOJ/AFMLS FOR SAMUEL 
MCC FOR AMBASSADOR DANILOVICH AND MORFORD 
DEPT PASS USTR FOR AMBASSADOR SCHWAB 
TREASURY FOR IA - BAUKOL 
USAID FOR ANE/AA WARD 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV KCOR ECON KJUS ID
SUBJECT: TIME MAGAZINE FIGHTING TO OVERTURN DEFAMATION RULING IN 
INDONESIA 
 
REF: Jakarta 2525 
 
JAKARTA 00002969  001.2 OF 002 
 
 
¶1. (SBU) SUMMARY: TIME magazine will soon file for judicial review - 
its last available legal option - in the Suharto defamation case. 
The Supreme Court ruled on August 30 that TIME must pay $111 million 
to former President Suharto due to defamation of character caused by 
a May 1999 TIME cover story (see reftel).  The Supreme Court has 
overturned similar cases through judicial review in the past, 
although the process could take years. Beyond press freedom, the 
TIME case is an investment climate issue, raising serious doubts 
about rule of law in Indonesia.  End Summary. 
 
Working within the Indonesian Legal System 
------------------------------------------ 
 
¶2. (SBU) TIME Indonesia's correspondent Jason Tedjasukmana told us 
that TIME's legal team will file for Supreme Court judicial review 
by the end of the month.  Judicial review is the last available 
legal option to appeal the case.  TIME wants to file the review 
quickly to maintain the case's public profile.  Prominent lawyer and 
Transparency International Indonesia chairman Todung Mulya Lubis is 
leading the TIME defense team. 
 
¶3. (SBU) The judicial review process could last months, if not 
years, according to Tedjasukmana.  Through its judicial review 
function, the Supreme Court has overturned previous decisions, but 
it is not common.  TIME plans to seek review on the basis of 
"manifest error," arguing error was made in the previous court 
judgment. The Supreme Court also reviews cases if new evidence is 
presented, but Tedjasukmana said they have no new evidence to 
present. 
 
¶4. (SBU) The defense team may also argue that the Supreme Court 
based its original decision on civil code whereas the Indonesian 
press law should have been applied, according to Tedjasukmana.  In 
2006, the Supreme Court overturned a district court decision against 
leading Indonesian weekly Tempo when Indonesian businessman Tommy 
Winata filed defamation charges.  The Supreme Court applied the 
press law, overturning the district court's use of criminal law. 
 
The Man Behind the Man 
---------------------- 
 
¶5. (SBU) Tedjasukmana suggested that one factor that would help 
TIME's strategy to overturn the ruling is the retirement of the 
Supreme Court judge who made the original decision.  Supreme Court 
judges are unlikely to rule against one of their own, he said.  If 
the original case's lead judge retires, he does not lose face if 
judicial review overturns his original decision.  As the judicial 
review will likely take months if not years, this strategy is a 
viable option. 
 
¶6. (SBU) German Hoediarto (Vice Chair of the Supreme Court's 
military unit), M. Taufik, and Bahaudin Qaudry made the August 30 
Supreme Court ruling against TIME.  Close to retirement, Hoediarto 
is a strong nationalist with former military connections to Suharto. 
 Hoediarto allegedly owes his two military stars to Suharto, 
according to our contacts.  Although many in the public suspect 
corruption, nobody has provided evidence that corruption influenced 
the Supreme Court's decision. 
 
Background: Preparing for the Final Round? 
------------------------------------------ 
 
¶7. (U) The August 30 Supreme Court decision is the third chapter in 
this long legal drama between TIME and Suharto. District and 
appellate courts originally ruled in favor of TIME since Suharto 
filed a lawsuit after the May 24, 1999 TIME "Suharto, Inc." article. 
 This Supreme Court decision overturned these lower court decisions, 
finding defamation under civil code (see reftel). 
 
JAKARTA 00002969  002.2 OF 002 
 
 
 
¶8. (U) The local media has been united in strongly criticizing the 
ruling as a blow to press freedom.  The wider public opinion is more 
mixed: some expressing nationalist reactions to protect Suharto, 
others claiming corruption was involved in the decision-making 
process.  TIME vowed to contest the judgment, saying, "TIME will use 
every avenue available to fight for the defense of press freedoms. 
We will challenge this judgment by filing with the [Supreme] Court a 
petition for [judicial] review," according to an October 10 press 
release. 
 
 
Investors See Lack of Legal Certainty 
------------------------------------- 
 
¶8. (SBU) Beyond press freedom implications, this case calls into 
question again the integrity of the Indonesian judicial system for 
foreign investors.  The decision highlights the sometimes capricious 
application of laws in Indonesia.  Business leaders have said that 
the TIME case contributes to negative perceptions of the investment 
climate in Indonesia.  We will raise the TIME case with Indonesian 
officials to convey how this decision negatively affects the 
investment climate, as well as Indonesia's international image. 
 
HUME