VZCZCXRO4220
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #3134/01 3170205
ZNR UUUUU ZZH
R 130205Z NOV 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 7009
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 1092
RUEHBJ/AMEMBASSY BEIJING 4466
RUEHBY/AMEMBASSY CANBERRA 1530
RUEHUL/AMEMBASSY SEOUL 4282
RUEAIIA/CIA WASHDC

UNCLAS SECTION 01 OF 02 JAKARTA 003134 
 
SIPDIS 
 
DEPT FOR U/S JEFFERY, EEB A/S SULLIVAN, DEPT FOR EAP DAS MARCIEL,EEB 
DAS DIBBLE 
DEPT 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 - A/S LOWERY 
USAID FOR ANE/AA WARD 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV KMCA KCOR ECON KJUS ID
SUBJECT: ANTI-CORRUPTION COMMISSION LEADING INDONESIAN REFORM 
MOVEMENT 
 
REF: A) JAKARTA 2753 - Judicial Comm Irawady case; B) JAKARTA 2610 - 
 
U/S Jeffery Meeting with KPK; C) JAKARTA 2864 - Audit Board update; 
D) JAKARTA 2464 - Anti-Corruption Court Update 
 
JAKARTA 00003134  001.2 OF 002 
 
 
¶1. (SBU) Summary: The Corruption Eradication Commission (KPK) leads 
the anti-corruption movement in Indonesia through its high-level 
investigations, vigorous prosecutions, and highly respected 
reform-minded leadership. Our legal, law enforcement, and NGO 
contacts broadly agree that the KPK's leadership is cause for 
optimism within the anti-corruption and broader governance reform 
agendas in Indonesia.  The KPK continues to demonstrate its success 
by prosecuting six "big fish" in 2007.  The KPK is further 
institutionalizing its role in anti-corruption reform by increasing 
case loads through expanded personnel levels.  The KPK is 
implementing a long-term strategy that balances prevention and 
prosecution.  While institutional and bureaucratic forces challenge 
its expanded profile, the KPK continues to achieve results, charting 
a strategic direction for anti-corruption reform in Indonesia.  End 
Summary. 
 
High-Profile Cases Highlight KPK Success 
---------------------------------------- 
 
¶2. (U) The KPK is an independent government institution with a 
well-deserved reputation for effectiveness.  As of October 2007, the 
KPK successfully executed 21 cases.  Six cases in 2007 involved "big 
fish," or high-level government officials, according to Acting KPK 
Secretary General Syamsa Ardisasmita.  The KPK prosecuted the 
 
SIPDIS 
Governor of South Kalimantan, two mayors (Kendal, Kutai 
Kartanegara), the former Minister of Oceans and Fisheries, a former 
Secretary General in the Law and Human Rights Ministry, and a 
 
SIPDIS 
Ministry of Foreign Affairs official.  The KPK also won cases 
involving bribery scandals at the Supreme Court.  The KPK is 
currently prosecuting a senior Judicial Commission official (ref A). 
 These "big fish" cases are symbolically and substantively important 
and spotlight Indonesia's robust anti-corruption efforts. 
 
¶3. (SBU) KPK officials noted that these successful prosecutions have 
returned Rp 50 billion ($5.6 million; Rp 9,000/USD) to the 
government.  The estimated potential return including pending cases 
totals Rp 98 billion ($10.9 million).  These numbers are small 
compared to the Rp 36 trillion ($4 billion) the GOI loses annually 
due to public procurement corruption, according to KPK chairman 
Taufiequrachman Ruki. 
 
KPK Capacity Continuing to Increase 
----------------------------------- 
 
¶4. (U) The KPK has fully carried out 39 cases since its founding in 
¶2004.  It has steadily increased its case loads from no cases in 
2004 to four cases in 2005, 14 in 2006, and 21 in 2007 (through 
August).  The KPK has similarly increased its investigations. 
Through August 2007, the KPK has increased initial preliminary 
investigations to 59, compared to 36 in 2006.  Regarding full 
investigations, the KPK has conducted 25 through August 2007, 
compared to 28 in all of 2007. 
 
¶5. (U) Increased personnel explain the rising tempo of operations. 
The KPK has more than quadrupled the number of investigative 
personnel and doubled the number of prosecutors since 2004.  The KPK 
now has 85 investigators and 20 prosecutors.  KPK leadership tell us 
they will prioritize further personnel increases in their budget to 
continue to increase their overall capacity.  The KPK has also moved 
into its permanent headquarters, increasing its physical capacity 
and symbolic prominence with its location on Jakarta's main 
thoroughfare. 
 
Corruption Prevention as the Long-Term Solution 
 
JAKARTA 00003134  002.2 OF 002 
 
 
--------------------------------------------- -- 
 
¶6. (SBU) The KPK will focus 40% of its resources on prevention and 
60% on prosecution, according to Ardisasmita.  KPK Commissioner 
Amien Sunaryadi has also told us that the KPK seeks to improve its 
programming for prevention: he views prevention as the longer-term 
solution for anti-corruption reform.  To increase prevention 
efforts, the KPK is leading broader civil service, procurement, and 
judicial reform initiatives.  Supreme Court reform is also a high 
priority, according to KPK Deputy for Prevention Waluyo.  The KPK is 
partnering with other reformers, such as Finance Minister Sri 
Mulyani, to address broader judicial and civil service reform.  Sri 
Mulyani has made great progress with Finance Ministry reform, 
removing notoriously corrupt Directors General of Tax and Customs. 
 
 
¶7. (SBU) Two core KPK functions are supervision and coordination of 
anti-corruption cases (ref B).  The KPK is responsible for 
supervising and coordinating anti-corruption cases with relevant 
government entities.  The KPK noted 22 cases for which it has played 
a supervisory role and 66 cases as coordinator.  KPK contacts tell 
us they seek closer, more efficient cooperation with the Attorney 
General's Office and Police, two key anti-corruption reform actors. 
The independent standing and clean reputation of the KPK allow it to 
be a strong leader of the Indonesian anti-corruption reform 
movement, according to a majority of our contacts. 
 
The Long, Slow Road to Revolutionary Reform 
------------------------------------------- 
 
¶8. (SBU) Challenges remain for the KPK.  The courts have reduced 
KPK-recommended penalties in some high-profile cases.  The KPK 
sought a seven-year sentence for East Kalimantan Governor Suwarna, 
but the Anti-Corruption Court (ACC) only levied 18 months.  Legal 
contacts tell us that KPK successes must also be placed in 
perspective.  It has a 100% conviction record, but has only brought 
39 cases to trial.  The KPK hs recovered $5.6 million in losses to 
the state, a frac o*  f the  millons of dollars of ill-gotten gains 
reported by th BPK (Ref C).  The uncertain future of the ACC 
jeopardizes the KPK's future, too. (Ref D). 
 
Comment: KPK Institutionalizing Its Leadership 
--------------------------------------------- - 
 
¶9. (SBU) The KPK is institutionalizing its role in anti-corruption 
reform through its increased personnel, larger case load, and strong 
mandate.  The KPK's successful prosecution of six "big fish" in 2007 
is symbolic of its continued progress.  Our legal, law enforcement, 
and NGO contacts broadly agree that the KPK's leadership is cause 
for optimism within the anti-corruption and broader governance 
reform agendas in Indonesia.  End Comment 
 
HUME