VZCZCXRO3083
OO RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #1408/01 2040826
ZNR UUUUU ZZH
O 220826Z JUL 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9607
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS PRIORITY
RUEHBY/AMEMBASSY CANBERRA 2808
RUEHKA/AMEMBASSY DHAKA 1110
RUEHNE/AMEMBASSY NEW DELHI 2034
RUEHPB/AMEMBASSY PORT MORESBY 3884
RUEHKO/AMEMBASSY TOKYO 2263
RUEHWL/AMEMBASSY WELLINGTON 2869
RUEHHK/AMCONSUL HONG KONG 2825
RUEHPT/AMCONSUL PERTH 0976
RUEAIIA/CIA WASHDC
RUEAWJB/DEPT OF JUSTICE WASHDC
RHMCSUU/FBI WASHINGTON DC
RHEHNSC/NSC WASHDC
RHHJJPI/USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 03 JAKARTA 001408 
 
SIPDIS 
 
CANBERRA: PLEASE PASS TO FBI DIRECTOR MUELLER 
STATE FOR EAP, EAP/MTS, EEB/IFD/OIA, INL BARCLAY 
FBI FOR DIRECTOR ROBERT S MUELLER 
DOJ FOR CRIM AAG SWARTZ 
DOJ/OIA FOR WARNER/ROBINSON 
DOJ/OPDAT FOR ALEXANDRE/LEHMANN/JOHNSON 
USAID FOR ANE/AA WARD 
 
E.O. 12958: N/A 
TAGS: PREL KJUS KCOR PTER ID
SUBJECT: SCENESETTER FOR FBI DIRECTOR MUELLER 
 
JAKARTA 00001408  001.2 OF 003 
 
 
¶1.  (U)  This message is Sensitive but Unclassified. 
 
¶2.  (SBU) SUMMARY:  FBI assistance programs are critical for 
Indonesia's democratic development.  Over the past ten years 
of its democratic transition, Indonesia has worked to 
establish the laws, institutions, and procedures for 
sustained governance reform and improving rule of law.  It 
has made strides in these areas thanks, in part, to USG 
assistance, but much needs to be done. 
 
¶3.  (SBU) SUMMARY (Con'd):  To assist the overall effort, the 
FBI and the Department of Justice are partnering with 
Indonesia on many fronts:  counterterrorism; anti-corruption; 
criminal procedure reform; anti-money laundering; asset 
forfeiture; trafficking in persons; environment protection; 
and, in the building of overall investigative and 
prosecutorial capacity.  This partnership has yielded 
concrete results, including the arrest and conviction of 
terrorists, effective corruption prosecutions, seizures of 
illegal drugs and the overall advancement of U.S. strategic 
interests.  The FBI Director's visit to Indonesia underscores 
the importance of the growing bilateral partnership in the 
areas of law enforcement and the rule of law.  END SUMMARY. 
 
DEMOCRACY IN ACTION 
 
¶4.  (SBU) Many observers believe Indonesia to be the most 
democratic country in Southeast Asia.  President Yudhoyono 
has moved to enact a reform agenda during his tenure.  The 
legislature--while still experiencing growing pains--has 
increasingly asserted itself in domestic affairs and foreign 
policy.  Indonesia has held over 350 local elections--without 
major incident--in the past five years, many in former 
conflict areas such as Ambon, Central Sulawesi, and Aceh. 
Key provinces in Java are holding or have held elections 
involving well over a 100 million people this year. 
 
¶5.  (U) In the spring of 2009, Indonesia will conduct its 
second direct Presidential election.  The 2004 Indonesian 
presidential election went smoothly.  The 2009 contest is 
expected to be a close battle between Yudhoyono and former 
president Megawati Sukarnoputri (daughter of the country's 
first president, Sukarno).  The economy is Yudhoyono's 
Achilles heel, and as Indonesia gears up for these 
presidential and legislative elections, domestic issues will 
increasingly dominate the political scene.  Despite economic 
uncertainty, the prospects for a peaceful and transparent 
election remain high. 
 
¶6.  (U) That said, rising prices of both food and fuel, both 
of which are subsidized by the Indonesian government, have 
created challenges for the Yudhoyono administration.  In May, 
the government mandated a nearly 30-percent increase in fuel 
prices which sparked some public protests and a decline in 
the popularity of President Yudhoyono.  Rapidly rising prices 
for basic commodities are chewing up the disposable income of 
the poor--precisely the people Yudhoyono pledged to help in 
his last presidential campaign.  Nearly half of the 
approximately 240 million Indonesians live on $2 a day or 
less.  Increasing subsidies to keep fuel prices in check are 
forcing the government to divert money from health, education 
and infrastructure--basic drivers of long-term prosperity. 
 
¶7.  (SBU) Despite the deep-rooted moderation of Indonesia's 
pluralistic society and constitutionally guaranteed religious 
freedom, Islamic hard-liners remain a problem.  The 
governmental advisory body, the Indonesian Ulema Council 
(MUI), has issued conservative fatwas against pluralism, 
liberalism, and secularism.  Most recently, the MUI issued a 
fatwa against Muslim sect, Ahmadiyah, declaring it heretical, 
 
JAKARTA 00001408  002.2 OF 003 
 
 
which resulted in a series of attacks against members of the 
sect.  The Government of Indonesia subsequently banned 
Ahmadiyah from proselytizing, creating further confusion as 
to the sect's status.  Because the Islamic vote is critical 
in the upcoming presidential and legislative elections, 
Indonesian political leaders are reluctant to challenge the 
hard-liners. 
 
OVERVIEW OF LAW ENFORCEMENT ASSISTANCE 
 
¶8.  (SBU) Functions exercised by the Department of Justice in 
the U.S. are divided among several institutions in Indonesia. 
 Since its separation from the military in 1999, the 
Indonesian National Police are responsible for internal 
security.  The Indonesian National Police (INP) are primarily 
responsible for criminal investigations.  The Attorney 
General's Office (AGO) handles prosecutions in ordinary cases 
in the general courts and is authorized to investigate 
corruption cases.  The Corruption Eradication Commission 
(KPK) leads high-level corruption investigations and 
prosecutions, and presents its cases in a specialized 
Anti-Corruption Court.  The Ministry of Law and Human Rights 
is responsible for developing justice sector legislation, 
administration of the prisons, and serves as Indonesia's 
central authority for mutual legal assistance requests. 
 
¶9.  (SBU) Reform of law enforcement institutions and their 
procedures are a cornerstone of Mission efforts to support 
rule of law in Indonesia.  In addition to operational duties, 
FBI/Legat is a critical component in the Mission's efforts to 
advance rule of law.  FBI/Legat Jakarta provides operational 
and investigative support to the police in the areas of 
counterterrorism, corruption, and transnational crime. 
 
¶10.  (SBU) In these efforts, FBI/Legat works closely with 
DOJ/ICITAP to develop the operational and organizational 
capacity of the police through technical assistance and 
training in evidence handling;  investigating cyber crime; 
disarming and preventing the proliferation of weapons of mass 
destruction; post-blast handling; and report writing. 
FBI/Legat is working with DOJ/OPDAT to reform the criminal 
procedure code; foster better cooperation between police and 
prosecutors; and provide training to the KPK on undercover 
operations and case management. 
 
SUCCESS IN COUNTER-TERRORISM PARTNERSHIP 
 
¶11.  (SBU)  In May 2008, the Department of State lifted the 
travel warning for Indonesia, reflecting the improved 
security situation since the spate of terrorist attacks from 
2002-2005.  Indonesian National Police Chief General Sutanto 
is a reformer who is dedicated to establishing a professional 
police force that manages internal security and serves the 
people.  Over the last six years, Indonesian Police have 
arrested and prosecuted hundreds of terrorists, including the 
three Bali bombers who currently await execution.  The recent 
and highly publicized arrests of operatives of Jemaah 
Islamiyah, a regional terrorist organization, and the seizure 
of approximately 20 Improvised Explosive Devices in Palembang 
is the latest in a series of successes and reflects on the 
increased capacity of the Indonesian National Police. 
 
¶12.  (SBU) The FBI works closely with Indonesian National 
Police, along with other U.S. partners and the Australian 
Federal Police, in quietly providing operational support on 
CT and transnational crime.  The U.S.-supported Attorney 
General's Terrorism and Transnational Crime Task Force has 
been responsible for the successful prosecution of 
approximately 43 terrorist suspects, including 26 JI members. 
 
 
JAKARTA 00001408  003.2 OF 003 
 
 
 
ANTI-CORRUPTION REFORM 
 
¶13.  (SBU) When President Yudhoyono was elected in 2004, he 
made combating corruption his top priority.  As a result, the 
Corruption Eradication Commission was founded in 2004, as an 
independent governmental body.  The KPK has prosecuted 
numerous high profile cases and has coordinated 
government-wide prevention strategies.  The FBI and other 
Mission entities have provided a wide range of operational 
and technical support for the KPK.  For example, ICITAP, 
using funding from U.S. Millennium Challenge Corporation 
Threshold Program (MCC), is purchasing millions of dollars in 
electronic surveillance equipment to assist the KPK in 
gathering electronic evidence which will more effectively 
assist in prosecutions.  The FBI has worked with OPDAT to 
provide corruption investigative training and money 
laundering training.  With support from the USG, the AGO 
recently created an elite Anti-Corruption Task Force modeled 
after the highly successful Terrorism and Transnational Crime 
Task Force. 
 
A KEY VISIT 
 
¶14.  (SBU) With the continuing assistance of the FBI and 
other USG entities, Indonesia is still developing its 
governance architecture and the results are only now slowly 
starting to materialize.  A sustained U.S.-Indonesian 
partnership to promote regional stability and rule of law is 
essential to Indonesia continuing its democratic development. 
 The FBI is a critical element in continuing and enhancing 
rule of law in Indonesia.  This visit to Indonesia provides 
an important opportunity to express appreciation and support 
for the efforts of the Indonesian government and to encourage 
greater cooperation. 
 
HUME