VZCZCXRO5963
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHJA #0216/01 0400529
ZNR UUUUU ZZH
R 090529Z FEB 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 1419
INFO RUEATRS/DEPT OF TREASURY WASHDC
RUEAWJA/DEPT OF JUSTICE WASHINGTON DC
RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHKO/AMEMBASSY TOKYO 3006
RUEHBJ/AMEMBASSY BEIJING 5891
RUEHBY/AMEMBASSY CANBERRA 3580
RUEHUL/AMEMBASSY SEOUL 5366
RUEHGP/AMEMBASSY SINGAPORE 6442
RHEHNSC/NSC WASHDC
RUEAIIA/CIA WASHDC

UNCLAS SECTION 01 OF 02 JAKARTA 000216 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR EAP/MTS, EAP/RSP, EEB/ESC/TFS, INL, S/CT, F (FOR 
JAMES MARTIN) 
TREASURY FOR M.NUGENT, T.RAND AND COLLEEN STACK 
USAID/ASIA/AA FOR MARGOT ELLIS 
USAID/EGAT/AA FOR MARK SILVERMAN 
DOJ/AFMLS FOR L. SAMUEL 
SINGAPORE FOR S. BAKER 
TOKYO FOR R. KAPROTH 
 
E.O. 12958: N/A 
TAGS: EAID EFIN KCRM KTFN ID
 
SUBJECT:  ANTI-MONEY LAUNDERING/COMBATTING TERRORIST FINANCING 
TRAINING PAYS OFF 
 
¶1. (U) Summary: Mission support to the GOI's Financial Intelligence 
Unit (FIU) continues to show positive results. More remains to be 
done, but PPATK's effectiveness and credibility have improved, as 
reflected in recent data on the filing of suspicious transaction 
reports (STRs) and cash transaction reports (CTRs). (See paragraph 
5). End summary. 
 
Background on PPATK (Indonesia Financial Transaction 
Report and Analysis Center) 
- - - - - - - - - - - - - - 
 
¶2. (U) PPATK, Indonesia's FIU, was established in April 2002, became 
operational in October 2003 and continues to make progress in 
developing its human and institutional capacity.  The PPATK is an 
independent agency that reports directly to the President.  The core 
FIU functions outlined in Article 26 of Indonesia's Anti-Money 
Laundering law states that PPATK shall receive, analyze, evaluate 
and disseminate currency and suspicious financial transaction 
reports to law enforcement agencies, provide advice and assistance 
to relevant authorities, and issue publications.  In addition, PPATK 
prepares and offers recommendations to provide direction for 
national policy in the area of prevention and eradication of money 
laundering and other serious crimes. 
 
USG Support for AML/CTF 
- - - - - - - - - - - - 
 
¶3. (U) Through USAID's Financial Crimes Prevention Project, which 
ended in June 2008, and MCC's Control of Corruption Project, 
technical assistance and training is provided to PPATK, among other 
GOI institutions, to enhance its capacity to detect and prevent 
financial crimes and the financing of terrorism.  USAID assistance 
included drafting and supporting a national anti-money laundering 
strategy, including anti-money laundering statutes and implementing 
regulations; working with the USDOJ on developing an asset 
forfeiture law and the implementation of regulations on the mutual 
legal assistance law.  Under the USAID-implemented MCC Threshold 
Program, efforts are focused upon improving PPATK's "Know Your 
Customer" education and public awareness campaign and increasing 
PPATK's capacity to receive and analyze online financial reports. 
 
Recent Training 
- - - - - - - - 
 
¶4. (U) Twenty-two Government of Indonesia (GOI) officials were 
trained in Washington, DC January 5-16, 2009 on Anti-Money 
Laundering/Combating of Terrorist Financing (AML/CTF).  The purpose 
of the training was to improve the capacity of the GOI participants 
in enforcing AML controls, as well as the prevention and eradication 
of financial crimes.  The 22 officials came from the Indonesia 
Financial Transaction Report and Analysis Center-PPATK (15 persons), 
the Supreme Audit Board (1), the Ministry of Finance Inspectorate 
General's Office (5) and the Ministry of Law and Human Rights (1). 
The training deepened the necessary investigative analysis skills to 
combat money laundering, terrorism financing and documenting such 
results.  The participants reviewed the American AML/CTF process and 
Indonesia's AML/CTF process.  They discussed the 2008 PPATK STR 
report to identify concerns and issues related to AML/CTF in 
Indonesia.  While the training provider, SightSpan, Inc., was 
impressed by the level of knowledge of AML/CTF issues, they noted 
that there is still a relative lack of skills and knowledge specific 
to individual job requirements. 
Some Enforcement Successes 
- - - - - - - - - - - - - - 
¶5. (U) As of December 31, 2008, the PPATK had received a total of 
23,056 suspicious transaction reports (STRs) from banks and non-bank 
financial institutions.  Approximately 10,400 of these STRs were 
received during 2008.  The agency also reported that it had received 
over 6.3 million cash transaction reports (CTRs) from banks, 
moneychangers, rural banks, insurance companies and securities 
companies.  PPATK has submitted a total of 612 cases to various law 
 
JAKARTA 00000216  002 OF 002 
 
 
enforcement agencies based on their analysis of 1,215 STRs. 
¶6. (SBU) Since its removal from the Financial Action Task Force's 
(FATF) Non-Cooperative Countries and Territories (NCCT) list in 
2006, Indonesia has made real progress in improving its AML regime. 
CFT implementation remains a work in progress.  Indonesia underwent 
the Asia Pacific Group (APG) on AML's second mutual evaluation in 
2007 and had the APG final report endorsed by all members in its 
Annual Meeting hosted and co-chaired by Indonesia in Bali in July 
¶2008.  With a finding of 15 non-compliant ratings, however, 
Indonesia still has considerable work ahead in order to establish a 
fully effective AML/CFT regime. 
 
HUME