VZCZCXRO3785
OO RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #0017/01 0031015
ZNR UUUUU ZZH
O 031015Z JAN 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7552
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS PRIORITY
RUEHBJ/AMEMBASSY BEIJING 4620
RUEHBY/AMEMBASSY CANBERRA 1840
RUEHNE/AMEMBASSY NEW DELHI 1509
RUEHKO/AMEMBASSY TOKYO 1383
RUEHWL/AMEMBASSY WELLINGTON 2217
RUEHPT/AMCONSUL PERTH 0514
RHEHNSC/NSC WASHDC
RUEAWJB/DEPT OF JUSTICE WASHDC
RUEAIIA/CIA WASHDC
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SECTION 01 OF 02 JAKARTA 000017 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EAP, EAP/MTS, EAP/MLS, INR/EAP, INL FOR BOULDIN 
DEPT FOR EEB/IFD/OMA 
DOJ/OPDAT FOR LEHMANN/ALEXANDRE/BERMAN 
SINGAPORE FOR BAKER 
TREASURY FOR IA-BAUKOL 
DEPT PASS FEDERAL RESERVE SAN FRANCISCO FOR FINEMAN 
DEPT PASS EXIM BANK 
DEPT PASS USTR FOR DKATZ, RBAE 
NSC FOR E.PHU 
 
E.O. 12958: N/A 
TAGS: PGOV KJUS KCOR KMCA ID
SUBJECT: CORRUPTION UPDATE -- FORMER ENVOY CONVICTED OF 
GRAFT 
 
REF: A. 07 JAKARTA 3484 
     ¶B. 07 JAKARTA 3378 
     ¶C. 07 JAKARTA 3320 
     ¶D. 07 JAKARTA 3173 
     ¶E. 07 JAKARTA 2722 
     ¶F. 07 JAKARTA 2525 
 
JAKARTA 00000017  001.2 OF 002 
 
 
¶1.  (U) This message was coordinated with Consulate Medan. 
It is Sensitive but Unclassified -- Please handle accordingly. 
 
¶2.  (SBU) SUMMARY:  In the latest corruption news: the former 
Indonesian Ambassador to Malaysia was convicted and sentenced 
to prison for overcharging visa applicants; the Attorney 
General has disciplined three prosecutors who failed to win a 
conviction against an illegal logging kingpin; and, a private 
corruption watchdog criticized the GOI's use of closed door 
dispute resolution mechanisms in some cases of alleged 
corruption.  The GOI continues to investigate a potentially 
splashy case involving alleged corruption in construction at 
Indonesia's embassy in Sinagapore.  END SUMMARY. 
 
¶3.  (U) AMBASSADOR CONVICTED:  Former Indonesian Ambassador 
to Malaysia Hadi Wayarabi was convicted of corruption by the 
Anti-Corruption Court on January 2.  The Court found Wayarabi 
and another embassy official guilty of embezzling USD 1.8 
million in excess fees paid by Malaysian visa applicants. 
The men were sentenced to two and half years each of prison 
time.  Hadi could also face up to two additional years in 
prison if he fails to repay USD 175,000. 
 
¶4.  (U) PROSECUTORS DISCIPLINED:  The Attorney General's 
Office announced that three prosecutors involved in the 
recent acquittal of illegal logging kingpin Adelin Lis will 
be temporarily demoted.  Lis' controversial acquittal has 
spurred accusations of incompetence and corruption against 
police, judges and prosecutors involved in the case (ref B), 
but to date only the AGO has taken disciplinary action.  The 
sanctions are the latest in a series of moves taken by the AG 
against prosecutors who fail to perform competently (ref C). 
Observers have noted, however, that the demotions--which will 
last for one year only--are less severe than the punishment 
recommended by the AGO Directorate of Supervision back in 
December. 
 
¶5.  (U) A CONTROVERSIAL PRACTICE:  An anti-corruption 
research group has published a year-end report criticizing 
the GOI's use of what the report calls "customary resolution" 
of disputes involving corruption allegations against state 
officials.  The group defines the practice as the informal 
resolution of disputes between different government agencies 
without recourse to legal means. 
 
¶6.  (U) The report cites three examples in which the practice 
was employed during 2007:  a dispute between controversial 
former minister Yusril Mahendra and the Corruption 
Eradication Commission (ref A); allegations of ill-gotten 
gains helping to finance presidential campaigns (ref F); and, 
a dispute between the Supreme Audit Board and the Supreme 
Court over the auditing of case fees paid by plaintiffs (ref 
E).  All three matters were allegedly resolved after the 
disputants were summoned to closed-door high-level meetings 
and any legal proceedings under way at the time ceased from 
that point.  The report argues that disputes involving 
corruption allegations are best resolved through the legal 
system and that the legal process should be allowed to run 
its course. 
 
¶7.  (SBU) A SPLASHIER CASE?:  The Wayarabi decision involving 
the former envoy to Malaysia represents another success for 
the Corruption Eradication Commission--which investigated and 
 
JAKARTA 00000017  002.2 OF 002 
 
 
prosecuted the case--and the Anti-Corruption Court.  In the 
meantime, allegations of corruption have also been levied 
against other high-level Foreign Ministry 
officials--including current Indonesia Ambassador to the U.S. 
Sudjadnan Parnohadiningrat--who were involved in a 
construction project involving the Indonesian Embassy in 
Singapore (see ref d).  The government has not yet concluded 
its investigation into what could turn out to be a very 
splashy case. 
 
HUME