TERRORIST FINANCE - INTERNATIONAL ISLAMIC RELIEF

S E C R E T JAKARTA 010570

SIPDIS

SIPDIS

TREASURY FOR OFAC JPHILIP

E.O. 12958: DECL: 08/25/2016
TAGS: EFIN ETTC PREL AS ID
SUBJECT: TERRORIST FINANCE - INTERNATIONAL ISLAMIC RELIEF
ORGANIZATION INDONESIA BRANCH DESIGNATION

REF: A. STATE 134119

B. JAKARTA 9261

C. STATE 105209

D. JAKARTA 8088

E. STATE 122353

F. STATE 127947

G. MANILA 3375

H. STATE 134081

Classified By: Ambassador B. Lynn Pascoe. Reason: 1.4 (b) and (d).


1. (S) Summary: Department of Foreign Affairs (Deplu) counter
terrorism finance officer Aris Munundar told us on August 23
that the Indonesian Government (GOI) would no longer stand in
the way of a U.S.-led UN 1267 designation of the
International Islamic Relief Organization (IIRO) branch in
Indonesia. Munundar claimed that China acted on its own
initiative, without consulting first with the GOI, when it
placed a hold on the UN 1267 designation of the IIRO
Indonesia branch on the grounds that the case against the
organization is too weak and does not meet the criteria for
UN 1267 designation. Although the U.S. domestic designation
of IIRO Indonesia received only scant press in Indonesia,
Munundar claimed the matter remained sensitive, especially in
light of the organization's past work with Peoples
Consultative Assembly (MPR) Chairman Hidayat Nur Wahid.
Munundar thanked us for additional background information on
IIRO Indonesia from (ref A),adding that the Indonesian
Police still hope the U.S. could provide the name of the head
of IIRO Indonesia, who has provided the organization with
funding, how much, and by what means. Police investigations
have not turned up significant findings on IIRO Indonesia to
date, but they are continuing. End Summary.


2. (S) We delivered ref A talking points and background
information on IIRO Indonesia on August 23 to Department of
Foreign Affairs (Deplu) Directorate of International Security
and Disarmament Officer Aris Munundar, stressing the
extraordinary efforts Washington agencies had made to clear
and share information. Munundar thanked us for the
background information, adding that investigators are still
hoping the U.S. could provide the name of the head of IIRO
Indonesia, who has provided the organization with funding,
how much, and by what means. We explained to Munundar that
we had no additional information to share at this time.
Munundar noted that officers from Police Detachment 88 (the
Indonesian Police's counter-terrorism unit) on August 22
informed him that they had not turned up significant findings
on IIRO Indonesia, but investigations were continuing.


3. (S) Munundar appeared surprised and pleased to hear of the
Saudi Government's claim that IIRO had closed its Indonesia
branch. He said he could not confirm the branch's closure,
but added that he would ask the police to investigate. We
highlighted recent USG efforts to accommodate the GOI
requests for additional information and a delay in our
submission of IIRO Indonesia to the UN 1267 Committee. We
stressed, though, that we now felt it was time to push
forward with the designation.


4. (S) Munundar responded that combating terrorism is one of
the GOI's highest priorities. He noted that Indonesia, as a
matter of policy, respects other countries' rights to offer
names of Indonesian individuals and organizations to the UN
1267 Committee for designation. Munundar stated that the
GOI, at this time, "will no longer stand in the way" of the
U.S. effort to add IIRO Indonesia to the UN 1267 list.

MPR Head Involved with IIRO
--------------


5. (S) Munundar admitted that the U.S. domestic designation
of IIRO had received little press or public attention in
Indonesia. Still, he said a UN designation might receive
much more attention, especially since the organization made
tsunami and earthquake assistance donations through Hidayat

SIPDIS
Nur Wahid, the chairman of the Peoples Consultative Assembly
(MPR). He suggested that publicity of IIRO Indonesia's
designation could embarrass Wahid, who is a leading member of
the Justice and Welfare Party (PKS),a conservative Islamic
political party and member of President Susilo Bambang
Yudhyono's coalition government. (Note: Wahid's Al Haramain
Islamic boarding school and its Jakarta address were
mistakenly named in a January 2004 U.S.-led UN 1267

designation of the Indonesian branch of the Saudi Al Haramain
foundation. At the time, Wahid was a prospective candidate
for president. End Note.)


6. (S) When we raised China's move to block the UN 1267
Committee designation of IIRO Indonesia, Munundar showed us a
message from Indonesia's UN Mission in New York reporting on
the matter. According to the report, China blocked the IIRO
Indonesia designation on the grounds that the statement of
case was too weak and did not meet the criteria and standards
established by the UN 1267 Committee. Munundar insisted that
the GOI had not asked China to block the designation, and
that China had done so on its own initiative. He suggested
we contact the Chinese Government to determine if it will
continue to contest the designation.


7. (S) Comment: We continue to believe that the Indonesian
Police want to pursue their investigation into the IIRO, and
encourage Washington agencies to provide as much detailed
information as possible on the groups activities in
Indonesia. It is difficult to ascertain the degree of
consultations between Indonesia and China prior to China's
decision to block the IIRO designation. However, the
involvement of Nur Wahid, a political heavyweight in
Indonesia, might explain why the GOI would react more
defensively to the IIRO designation than it has to
controversial designations of Indonesian groups and citizens
in the past.
PASCOE