LARGEST COUNTERFEIT DRUG SEIZURE EVER IN INDONESIA

UNCLAS JAKARTA 002097 SIPDIS SIPDIS FOR EAP/MTS; EB/TPP/IPE; INL/AAE; INL/C 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 SNAR ID SUBJECT: LARGEST COUNTERFEIT DRUG SEIZURE EVER IN INDONESIA REF: A. JAKARTA 00011 ¶B. JAKARTA 01813 ¶C. JAKARTA 02035 ¶1. (SBU) SUMMARY: On July 23 Government of Indonesian (GOI) law enforcement authorities conducted the largest seizure ever of counterfeit pharmaceuticals. Jakarta police raided a warehouse seizing over 16 million finished tablets of counterfeit pharmaceuticals valued between $3 and $7 million. This latest seizure took place only three days after authorities seized over one hundred and fifty 50 kg bags of drugs in a separate raid (reftel C) and less than a month after police closed down two optical disk factories suspected of illegal production on July 1 (reftel B). END SUMMARY Imported Counterfeit Medicines -------------- ¶2. (SBU) Indonesian police raided a warehouse in Jakarta serving as a distribution center for imported counterfeit medicines on July 23. Authorities seized 16 million finished tablets of counterfeit pharmaceuticals, fifty thousand capsules and almost 1000 syrup bottles. Police estimated the value of the counterfeit medicines at between $3 and $7 million. GOI officials contend this is the largest counterfeit drug seizure ever worldwide. Evidence collected from the site by investigators confirmed the counterfeit product was destined for three well-known Jakarta pharmaceutical retailers for domestic sale. Much like previous raids, the medicines were packaged with brand-name corporate markings, including Pfizer, GalxoSmithKline, Bauer and Roche. Police investigators suspect the medicines were imported from China, but results of the investigation are not definitive. The owner of the premises fled the scene and police authorities believe he has departed the country for China. U.S. Technical Assistance Draws Private Sector Support -------------- -------------- ¶3. (SBU) 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, in addition to providing training and assistance, also successfully persuaded a consortium of pharmaceutical manufacturers to fund sample testing of the seized medicines. The pharmaceutical companies have also agreed to finance construction of a storage facility for seized goods. Investigation May Extend to Importation -------------- ¶4. (SBU) This latest counterfeit drug raid follows a impressive string of successful intellectual property rights (IPR) related enforcement actions by Indonesian authorities. ICITAP advisors tell us that if test results by pharmaceutical companies show the counterfeit medicines posed significant health risks to consumers, law enforcement authorities may broaden the investigation to include the importation of the drugs into Indonesia, potentially implicating GOI Customs officials. Post continues to recommend increased support of IPR-related assistance to the 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