INDONESIANS MAKE GAINS AGAINST COUNTERFEIT DRUGS

UNCLAS JAKARTA 002035 SIPDIS SIPDIS FOR EAP/MTS; EB/TPP/IPE COMMERCE FOR 4430/ BERLINGUETTE COMMERCE PASS USPTO JNESS DEPT PASS USTR FOR WEISEL, DKATZ, RBAE, E.O. 12958: N/A TAGS: KIPR ETRD KCOR ECON ID SUBJECT: INDONESIANS MAKE GAINS AGAINST COUNTERFEIT DRUGS REF: A. JAKARTA 00011 ¶B. JAKARTA 01813 ¶1. (SBU) SUMMARY: On July 20 Indonesian authorities carried out the largest and most successful operation to date against distributors of counterfeit pharmaceuticals. Jakarta Police raided a small retail pharmacy followed by an associated warehouse serving as a distribution center for imported counterfeit medicines. Police seized over one hundred and fifty 50 kg bags filled with counterfeit product. This latest seizure took place less than a month after Indonesian Police closed down two optical disk factories suspected of illegal production on July 1 (reftel B). END SUMMARY Drugstore Cowboys -------------- ¶2. (SBU) Indonesian police raided a small pharmacy in Jakarta on July 20 and seized six large 50kg bags filled with counterfeit medicines. Evidence collected from the site confirmed the location of a nearby warehouse suspected of importing and distributing illegal and counterfeit pharmaceutical products. Indonesian authorities raided the second location seizing 150 additional 50kg bags containing counterfeit prescription medications. The medicines were packaged with brand-name corporate markings, such as Pfizer, Galxo Smith Kline, Bauer and Roche among others. Further investigation by Police investigators revealed the medicines were imported directly from India and intended for retail distribution in Jakarta. Several individuals were detained for questioning; however the owner of the premises evaded police and is still at large. Technical Assistance Continues to Pay Off -------------- ¶3. (SBU) GOI law enforcement authorities benefited from intelligence and technical assistance provided through the State Department/INL-funded, Department of Justice International Criminal Investigative Training Assistance Program (ICITAP). ICITAP advisors provided surveillance and operational planning training as well as specific intelligence on the targeted locations. USG-funded ICITAP consultants familiar with the operation commented that links between counterfeit pharmaceutical distribution and organized crime remain unclear. GOI on a Roll -------------- ¶4. (SBU) These counterfeit drug raids come on the heels of Indonesia's crack down on violations of optical disk laws. GOI is clearly benefiting from USG engagement on IPR issues, and Indonesian law enforcement continues to make effective use of USG-funded technical assistance. The seizures should also assuage the concerns of pharmaceutical companies who feel neglected as compared to the attention given to optical disk piracy. Cumulative results from recent IPR-related raids and seizures further strengthens Post's recommendation for increased support of IPR-related assistance to GOI, including extension of the ICITAP program for another year and development of DOJ/OPDAT assistance to the Attorney General's Office to ensure successful prosecutions. HUME