VZCZCXRO2118
OO RUEHDT RUEHPB
DE RUEHJA #1910/01 3230211
ZNR UUUUU ZZH
O 190211Z NOV 09 ZDK
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3869
INFO RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE PRIORITY
RUEAWJB/DEPT OF JUSTICE WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHMCSUU/FBI WASHINGTON DC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEHLMC/MILLENNIUM CHALLENGE CORP PRIORITY 0156

UNCLAS SECTION 01 OF 02 JAKARTA 001910 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EAP, EAP/MTS, EAP/MLS, EAP/RSP, E, EEB, INL 
DOJ FOR CRIM AAG SWARTZ, DOJ/OPDAT FOR BERMAN 
NSC FOR D.WALTON; MCC FOR ISMAIL 
 
E.O. 12958: N/A 
TAGS: PGOV ECON KJUS KCOR ID
SUBJECT: FACT FINDING TEAM PRESENTS REPORT, PRESIDENT 
PONDERS NEXT MOVE 
 
REF: JAKARTA 1845 
 
JAKARTA 00001910  001.2 OF 002 
 
 
 ¶1. (SBU) SUMMARY:  A presidentially-appointed fact finding 
team called for total reform of Indonesia,s law enforcement 
institutions it its final report released on November 17. 
The ball is now in President Yudhoyono,s court.  The 
fact-finding team, commissioned to investigate allegations of 
a conspiracy to implicate Corruption Eradication Commission 
(KPK) leaders in criminal misconduct (see reftel), found that 
the evidence against the KPK leaders is weak and recommends 
halting the legal process against them.  It also recommends 
sanctioning the responsible officials and reforming the 
police and prosecutor,s office. President Yudhoyono is 
expected to publicly respond to the report on November 23 
after also reviewing rebuttals from the police and 
prosecutor,s office.  END SUMMARY 
 
RECOMMENDATIONS 
 
¶2. (U) In its November 17 report, the presidential fact 
finding team, known as the Team of 8, recommended dropping 
the case against against KPK commissioners Chandra Hamzah and 
Bibit Samad Riyanto.  The report asserted that evidence 
against the two commissioners was not strong enough to 
continue a legal case against them.  The report also stated 
that the law enforcement agencies involved were 
unprofessional, as evidently middlemen who sought personal 
gain had manipulated the evidence.  The report stated that 
institutional reform which honored the independence of the 
KPK was essential.  It also advised the President to 
establish a state commission to devise a comprehensive 
program for national legal reform which would coordinate with 
all legal institutions to uphold the rule of law, due 
process, justice, and human rights. 
 
THE FOLLOW THROUGH 
 
¶3. (U) After receiving the report, the team held a press 
conference with Coordinating Minister for Political, Legal 
and Security Affairs Djoko Suyanto to discuss further action. 
 Suyanto announced that President Yudhoyono instructed the 
team to publicly disseminate the report.  He also said 
Yudhoyono would give the police and prosecutors 2 to 3 days 
to respond to the report.  After receiving the report, SBY 
will meet with cabinet officials to discuss further action 
and announce his response on November 23. 
 
WHAT NEXT? 
 
¶4. (U) In surprise moves also on November 17, the AGO 
announced that prosecutors were ready to file charges against 
Chandra Hamzah in court and the INP reinstated Susno Duadji 
to his position as chief of the INP,s Criminal Investigation 
Division.  Attorney General Hendarman Supandji stated that he 
was still considering whether or not his office would file 
the charges with the court to begin the trial process for 
Bibit and Chandra.  INP Chief Bambang Hendarso Danuri had 
stated previously that Duadji,s was only suspended so that 
his authority would not interfere in the Team of 8,s 
investigation. (so why was this a surprise then? Were there 
noises about reinstating him before?) 
 
¶5. (SBU) All eyes are now on SBY to see what action he will 
take.  So far, he has predicated his action on a reluctance 
to interfere in any legal process against the commissioners. 
Chief editor of leading news magazine Tempo, Bambang 
Harymurti, warned that allowing charges against Chandra and 
Bibit to proceed to trial would extend public distrust of 
Indonesian legal institutions to the courts.  He said if the 
case proceeds to trial, the public will have access to the 
weak, circumstantial evidence against the KPK commissioners 
and this will further discredit the Indonesian legal system. 
This would distract the new administration,s attention from 
many other pressing issues with obvious negative 
consequences. 
 
¶6.  (U) Eric Sugandi, a local economist with Standard Charter 
Bank, suggested that a lack of follow through by the SBY 
administration could shake Indonesia,s economy.  He 
suggested that ignoring the Team of 8,s recommendations 
could have a negative impact on the rupiah and investment 
 
JAKARTA 00001910  002.2 OF 002 
 
 
climate.  On the contrary, if the KPK saga results in the 
institutional reform which the team,s report suggests, it 
could bring more foreign direct investment by promoting 
stability and transparency. 
HUME