VZCZCXRO7009
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #0377 0570651
ZNR UUUUU ZZH
R 260651Z FEB 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 8102
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 1563
RUEHBJ/AMEMBASSY BEIJING 4747
RUEHBY/AMEMBASSY CANBERRA 2051
RUEHUL/AMEMBASSY SEOUL 4422
RUEAIIA/CIA WASHDC

UNCLAS JAKARTA 000377 
 
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 ENTERS FINAL STAGE OF INDONESIAN LEGAL 
BATTLE 
 
REF: A) 07 Jakarta 2525 (TIME Supreme Court decision); 
     B) 07 Jakarta 2969 (TIME judicial review details) 
 
¶1. (SBU) SUMMARY: TIME magazine formally appealed on February 21 the 
$111 million Supreme Court decision in the Suharto defamation case. 
This appeal challenges the August 2007 Supreme Court decision on 
procedural grounds, particularly the Supreme Court's use of civil 
law instead of press law.  With Suharto's death, the civil case 
continues.  Odds of a Supreme Court appeal in favor of TIME remain 
strong, possibly increased due to public antipathy for the Suharto 
family.  End summary. 
 
TIME formally appeals to Supreme Court 
-------------------------------------- 
 
¶2. (SBU) On February 21, TIME magazine filed for Supreme Court 
judicial review - its final legal option - in the Suharto defamation 
case (see reftels).  A senior panel of Supreme Court judges will now 
review this appeal, as opposed to the more junior panel that made 
the August 2007 decision.  TIME submitted a 103 page memorandum to 
the Supreme Court that documented its grounds for appeal.  The 
review centers on demonstrating procedural "manifest error" in the 
original August 2007 Supreme Court decision.  TIME contends that the 
civil law protects journalists writing stories deemed to be in the 
public interest.  However, TIME also argues that civil law was 
applied when press law was more appropriate.  TIME has presented new 
evidence as well to the Supreme Court to support its original 
reporting on Suharto's ill-gotten gains, according to our sources. 
This case could continue to drag on for months, if not years, as 
there is no requirement for the Supreme Court to review the case 
within a designated timeframe. 
 
¶3. (SBU) TIME magazine is waging a public relations campaign that 
frames this case as an assault on press freedom and democratic 
institutions in Indonesia.  Todung Mulya Lubis, head of the TIME 
defense team and a prominent legal reform advocate, described the 
TIME-Suharto case as a test case for the overall reform movement in 
Indonesia.  Beyond press freedom, the TIME case is an investment 
climate issue, raising serious doubts about rule of law in 
Indonesia.  Business leaders have said that the TIME case 
contributes to perceptions of legal uncertainty for foreign 
investors in Indonesia. 
 
Ruling in Favor of TIME Remains Strong 
-------------------------------------- 
 
¶4. (SBU) Suharto's death slightly increases the likelihood of a 
favorable decision for TIME, according to our sources.  In this 
civil case, the plaintiff's responsibilities are procedurally 
transferred from Suharto to his heirs.  However, Suharto's death 
does affect the political and public debates surrounding the case. 
There is considerably less public support for the Suharto family 
compared to Suharto himself.  Due to the high-level nature of the 
case and TIME's public relations strategy, "the court of public 
opinion" and pressure from senior Indonesian political figures could 
shape the outcome. 
 
HUME