VZCZCXRO7809
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #2156/01 3291049
ZNR UUUUU ZZH
R 241049Z NOV 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 0793
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 WASHINGTON DC
RUEHKO/AMEMBASSY TOKYO 2762
RUEHBJ/AMEMBASSY BEIJING 5655
RUEHBY/AMEMBASSY CANBERRA 3327
RUEHUL/AMEMBASSY SEOUL 5160
RUEAIIA/CIA WASHDC

UNCLAS SECTION 01 OF 04 JAKARTA 002156 
 
MCC FOR AMBASSADOR DANILOVICH AND MORFORD 
MCC FOR MARIA LONGI 
DEPT FOR EEB A/S SULLIVAN 
DEPT FOR EAP DAS MARCIEL AND EB/IFD DAS DAVID NELSON 
DEPT FOR EAP/MTS, EEB/IFD/OIA, 
DEPT FOR INL SNYDER, CARLSON, ROESS 
USAID/ODP FOR KAREN TURNER AND PETER DELP 
USAID/ANE FOR STEPHAN SOLAT 
TREASURY FOR A/S LOWERY 
TREASURY/IA FOR RACHEL BAYLY 
DEPT PASS USTR FOR SCHWAB 
DEPT PASS USTR FOR ELENA BRYAN 
DEPT PASS USTR FOR FRAN HEUGEL 
DEPT PASS USTR FOR AUSTR BARBARA WEISEL 
OMB FOR JACQUELINE STRASSER 
DOJ FOR CRIM AAG SWARTZ 
DOJ/OPDAT FOR ALEXANDRE, BERMAN, JOHNSON 
DOJ/AFML FOR SAMUEL, 
DOJ/PUBLIC INTEGRITY FOR AINSWORTH 
 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV KJUS KCOR ID
SUBJECT: Indonesian corruption prosecutors experience first-hand how 
U.S. prosecutes corruption 
 
JAKARTA 00002156  001.2 OF 004 
 
 
¶1. (SBU) Summary: Twelve prosecutors from the Indonesian Attorney 
General's Office Anti-Corruption Task Force participated in an 
INL-funded two-week visit to the U.S. to learn how the U.S. 
investigates and prosecutes public corruption cases.  The 
delegation, led by DOJ/OPDAT Resident Legal Advisor (RLA), met with 
federal and state prosecutors, FBI agents, judges, auditors, and 
other officials involved in investigating and prosecuting public 
corruption cases in Sacramento, Washington, D.C., and New York. 
During the visit, the Task Force identified short-term goals, such 
as producing annual reports and using lower-cost surveillance 
techniques, and longer-term priorities, such as the creation of an 
AGO Inspector General's Office.  End summary. 
 
AGO Anti-Corruption Task Force makes quick start 
--------------------------------------------- --- 
 
¶2. (U) The AGO inaugurated the Anti-Corruption Task Force in June 
2008 in connection with U.S. Attorney General Mukasey's trip to 
Jakarta.  Deputy Attorney General for Special Crimes Marwan Effendy 
led a competitive and more transparent selection process for the 50 
Task Force members, assembling a task force of prosecutors from 
throughout the country.  The Task Force is divided into four units - 
finance and banking, information technology, public services, and 
procurement.  Since its inception, the Task Force has already 
initiated more than 20 cases, including the November arrest of three 
former and current Director Generals at the Ministry of Law.  The 
Task Force is leading a larger national effort to build smaller 
anti-corruption task forces in each province. 
 
¶3. (U) As part of a $750,000 INL-supported assistance project to 
support the new task force, the RLA and Econoff brought 12 members 
of the Task Force to the U.S.  This trip was a golden opportunity 
for the Indonesian prosecutors, half of whom had never been outside 
Indonesia, let alone had a chance to see how other countries 
investigate and prosecute corruption cases.  The group met with 
federal prosecutors from the Eastern District of California and the 
Southern and Eastern Districts of New York, DOJ prosecutors from the 
Public Integrity, Money Laundering, Foreign Corrupt Practices Act, 
Office of International Affairs, and Office of Inspector General in 
Washington, as well as state prosecutors in California.  The trip 
focused on presenting corruption case studies and use of evidence, 
including listening to taped phone conversations used in a recent 
corruption case in California.  The delegation also met with judges 
and other court personnel and observed live courtroom proceedings, 
including trial, arraignment, guilty plea, and sentencing 
proceedings.  As Indonesian prosecutors are also responsible for 
investigation, the group met with FBI corruption investigators in 
Sacramento and New York, as well as California investigators, 
auditors, and election oversight officials.  Overall, the group had 
more than thirty meetings, including one with over 50 people at the 
U.S.-Indonesia Society (USINDO) in Washington, which generated a 
Voice of America feature on the work of the AGO's Task Force. 
 
Prosecutors identify lessons from trip for their mission 
--------------------------------------------- ---------- 
 
¶4. (SBU) The delegation learned more about different options for 
using recorded conversations as evidence in corruption cases.  While 
wire-tapping equipment to intercept phone calls between two 
unsuspecting targets would be helpful, the U.S. prosecutors showed 
 
JAKARTA 00002156  002.2 OF 004 
 
 
the Indonesian prosecutors that simply recording phone calls made by 
cooperating witnesses to targets, as well as using body wires on 
informants or undercover law enforcement officials, are lower-cost 
options that can still generate powerfully incriminating recorded 
evidence.  Following the visit, the delegation expressed interest in 
USG assistance in this area.  The KPK has received wiretapping 
equipment through the MCC Threshold Program, but its prohibitive 
cost means that it is currently not an option for the AGO Task 
Force.  Marwan Effendy, Deputy Attorney for Special Crimes and head 
of the Task Force, confirmed this surveillance equipment request 
during a meeting with RLA on November 17. 
 
¶5. (U) The delegation also had an opportunity to discuss various 
procedural options, such as plea bargaining, that are not currently 
available in Indonesia.  This exposure is relevant to the members of 
the Task Force as Indonesia's new draft Criminal Procedure Code, 
which is awaiting legislative approval, includes plea bargaining and 
various adversarial procedures. 
 
¶6. (U) Wealth reports of elected and senior government officials are 
becoming a more widespread requirement in Indonesia, but not a 
common tool for corruption cases yet.  The Senator Stevens 
corruption case, which was unfolding while the prosecutors were in 
the U.S., provided a real example of the ability to use wealth 
reporting requirements to combat corruption.  Rather than contest 
whether or not the benefit an official received was formally a 
bribe, charges based on wealth reporting assess whether or not 
someone accurately filled out their financial disclosure statement. 
 
¶7. (U) The delegation identified other longer-term lessons during 
the visit.  For example, the delegation found the internal oversight 
conducted by the DOJ's Inspector General to be an effective 
institution for curbing internal problems, including internal 
corruption.  Internal codes of ethics can help protect prosecutors 
from political influence and other corrupting influences.  Following 
a meeting with the DOJ's Public Integrity Section, the head of the 
delegation said that he would recommend that the Task Force produce 
an annual report for Parliament and the public that documents the 
year's performance in a transparent manner.  Overall, the delegation 
witnessed the far more decentralized prosecution service system 
based on U.S. Attorney's Offices, compared to the Jakarta-centric 
approach in Indonesia. 
 
Obstacles facing corruption prosecutions by the AGO 
--------------------------------------------- ----- 
 
¶8. (U) Losses to the state is the central issue for Indonesian 
prosecutors to determine whether or not to investigate a corruption 
case.  The delegation said that if an AGO investigation finds losses 
to the state in a possible corruption case, the case must be 
prosecuted.  In the U.S., state losses is one factor, but does not 
automatically launch a corruption case.  U.S. investigators and 
prosecutors - at both the federal and state levels - emphasized that 
misspent government funds, resulting in a loss to the state, was not 
necessarily corruption, but possibly negligence.  In California, a 
negligence finding could result in fines or other punishment, but 
was differentiated from corruption.  The California Controller's 
Office stressed the line between administrative error and criminal 
intent.  For the Task Force's procurement sub-unit, this 
negligence-corruption distinction is critical.  U.S. prosecutors 
 
JAKARTA 00002156  003.2 OF 004 
 
 
also noted that the Task Force could look beyond losses to the state 
and develop broader criteria for investigating corruption cases. 
For example, conflict of interest is one type of corruption that 
could not cause any losses to the state, but nevertheless may still 
reflect corruption. 
 
¶9. (SBU) The Task Force noted political pressure within its 
decision-making structures from senior government officials and 
political parties.  To pursue a high-level corruption case, the AGO 
must receive Presidential approval to investigate and arrest a 
suspect.  For example, Task Force members noted the case of a 
Sumatra governor who they have investigated for bribery and 
misappropriation of funds.  The investigation is stalled due to a 
lack of permission from more senior leaders, most likely the 
Attorney General and the Office of the President.  During the visit, 
the group learned that at the DOJ, corruption investigations can 
begin without high-level approvals, and therefore when charging 
decisions need senior approval, meritorious cases are harder to 
derail because the evidence has already been gathered and the case 
has its own momentum.  At a subsequent meeting in Jakarta, Deputy 
Attorney General Effendy informed the RLA that he is working to 
remove these obstacles. 
 
¶10. (SBU) Good cooperation is critical for successful cases, yet 
Indonesian prosecutors are often hampered by lack of cooperation 
with other government agencies.  For example, in the area of money 
laundering, the Financial Intelligence Unit (PPATK) is well 
regarded, yet the process is lengthy as information flows from PPATK 
to the police and finally to the AGO prosecutors.  Similarly, in 
order to obtain bank records, the AGO must request the approval of 
the central bank governor, in contrast to U.S. prosecutors where no 
such approval is needed. 
 
Healthy competition with Corruption Eradication Commission 
--------------------------------------------- ---------- 
 
¶11. (SBU) Task Force members repeatedly expressed frustration - and 
resentment - towards the Corruption Eradication Commission (KPK), 
the highly-regarded independent Indonesian government body founded 
in 2004 to investigate and prosecute high-profile corruption cases. 
The KPK has expanded authorities (e.g., wiretapping), higher 
salaries, more sympathetic ad hoc corruption judges, advanced 
surveillance equipment, and a smaller case load than the AGO's 
Anti-Corruption Task Force.  The AGO and police typically 
investigate and prosecute 95% of all corruption cases whereas the 
KPK has only 5% of the overall case load and more discretion in 
terms which cases to pursue.  Whereas the KPK focuses on cases over 
Rp 1 billion ($100,000), the AGO must investigate all losses to the 
state.  The KPK's different procedural rules and less political 
interference provide it a greater freedom to pursue corruption 
cases.  Despite the tensions, however, Task Force members described 
the competition as largely positive and noted that the AGO and KPK 
closely coordinate on specific cases.  Although there are some 
differences in their mandates, the KPK and AGO divide cases more on 
a "first come, first served" basis. 
 
Task Force chief continuing to move forward 
------------------------------------------- 
 
¶12. (SBU) Anti-Corruption Task Force head Marwan Effendy said that 
 
JAKARTA 00002156  004.2 OF 004 
 
 
the Task Force will now establish small task forces in all thirty-ne 
High Prosecution Offices, during a November 17 meeting with the RLA. 
 Creating these parallel local task forces involving a total of 
1,000 prosecutors Effendy is looking to institutionalize the Task 
Force's approach to combat corruption.  Effendy thanked the RLA for 
leading the 12-prosecutor U.S. visit and suggested that Attorney 
General Supandji should visit the U.S. in February. 
 
HUME