VZCZCXRO2262
PP RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHJA #0692 1070742
ZNR UUUUU ZZH
P 170742Z APR 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 2145
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS COLL PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEAWJB/DEPT OF JUSTICE WASHDC PRIORITY

UNCLAS JAKARTA 000692 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EAP, EAP/MTS 
NSC FOR E.PHU 
 
E.O. 12958: N/A 
TAGS: ECON ID KJUS PGOV
SUBJECT: INDONESIAN SUPREME COURT RULES DECISIVELY IN FAVOR 
OF TIME MAGAZINE 
 
REF: A. A) 08 JAKARTA 377 - TIME FILES JUDICIAL REVIEW 
     ¶B. B) 07 JAKARTA 2969 - TIME JUDICIAL REVIEW UPDATE 
     ¶C. C) 07 JAKARTA 2525 - SC DECISION AGAINST TIME 
 
¶1. (SBU) Summary: The Indonesian Supreme Court ruled in favor 
of TIME magazine in the $110 million TIME-Suharto libel case 
on April 16.  The Supreme Court said there was no violation 
of the press code of ethics, applying press law as opposed to 
its August 2007 civil law decision.  This Supreme Court 
decision is the final step in a nearly ten-year legal battle. 
 The Court's decision is a positive marker for press freedom, 
an improvement in the credibility of the judicial system, and 
a qualified positive sign for the investment climate.  End 
Summary. 
 
TEN-YEAR BATTLE ENDS IN TIME'S FAVOR 
------------------------------------ 
 
¶2. (SBU) Former President Suharto filed a lawsuit against 
TIME after a May 1999 TIME front-page story claimed that the 
Suharto family amassed billions of dollars through corrupt 
activities.  District and appellate courts ruled in TIME's 
favor in 2000 and 2001, but the Supreme Court ruled in 
Suharto's favor in August 2007 (reftels).  The Court applied 
civil law and awarded Suharto $110 million on libel charges. 
The April 16 decision overturned the previous Supreme Court 
decision on procedural grounds, basing its final decision on 
press law. 
 
POSITIVE STEP FOR PRESS FREEDOM 
------------------------------- 
 
¶3. (SBU) The Supreme Court's decision strengthens press 
freedom in Indonesia, according to media and civil society 
contacts.  The Supreme Court found no violation of the press 
code of ethics, according to one of the three Supreme Court 
Justices who decided the judicial review.  The Supreme 
Court's position on press freedom is improving, according  to 
Indonesian weekly TEMPO senior editor Bambang Harimurti. 
Supreme Court representatives met with Indonesian Press 
Council leadership two days ago and in December 2008 to 
discuss press freedom, including the TIME case.  The Supreme 
Court issued an instruction in December 2008 to all courts 
that Indonesian Press Council members should be expert 
witnesses in all press-related cases.  The December 2008 
instruction and April 16 decision bolster the Court's 
protection of press freedom. 
 
CREDIBILITY OF THE COURTS RISING 
-------------------------------- 
 
¶4. (SBU) The Supreme Court decision is a positive step in 
improving the credibility of Indonesian courts, according to 
business and legal contacts.  The November 2008 retirement of 
German Hoediarto - the lead justice in the panel that ruled 
against Time in August 2007 - may have paved the way for the 
Supreme Court's final decision.  Overall, the Court's 
credibility is also improving due to institutional reforms 
(e.g., code of conduct, transparency decree), the retirements 
of other notorious judges, and the Court's fears of 
Corruption Eradication Commission investigations. 
 
INVESTMENT CLIMATE: THORN REMOVED, BUT STILL SCARRED 
--------------------------------------------- ------- 
 
¶5. (SBU) This decision is a qualified success in improving 
foreign investors' perceptions of the Indonesian investment 
climate.  Top Indonesian business contacts warned that the 
decision does not signify a fundamental change as business 
and political elites still can influence judicial decisions. 
TIME's prolonged legal battles damaged investors' confidence 
in the Indonesian judicial system, according to these 
business contacts.  And this final verdict is a welcomed, but 
much delayed success. 
HUME