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