ANTI-CORRUPTION UPDATE -- KEY INDEPENDENT

C O N F I D E N T I A L SECTION 01 OF 02 JAKARTA 001281 SIPDIS DEPT FOR EAP, EAP/MTS, EAP/MLS, EAP/RSP, E, INL DOJ FOR CRIM AAG SWARTZ, DOJ/OPDAT FOR BERMAN NSC FOR J.BADER; MCC FOR ISMAIL E.O. 12958: DECL: 07/31/2019 TAGS: PGOV KJUS KCOR ID SUBJECT: ANTI-CORRUPTION UPDATE -- KEY INDEPENDENT COMMISSION REMAINS IN THE SPOTLIGHT REF: JAKARTA 1203 AND PREVIOUS JAKARTA 00001281 001.2 OF 002 Classified By: Pol/C Joseph L. Novak, reasons 1.4(b+d). ¶1. (C) SUMMARY: In the latest anti-corruption news, Indonesia's independent Corruption Eradication Commission (KPK) is facing various inquiries. KPK-police tensions have escalated with both sides threatening to bring corruption charges against the other. President Yudhoyono's intervention in the squabble temporarily eased tensions, but the police and other authorities have declared their intent to continue investigating the high-profile KPK. In the meantime, Parliament is reviewing draft legislation focused on the KPK and its powers. Given all the flak, the KPK is feeling a bit squeezed in fulfilling its anti-corruption mandate. END SUMMARY. KEY INDEPENDENT COMMISSION IN THE NEWS ¶2. (SBU) Indonesia's independent anti-corruption commission remains in the spotlight. After investigating and prosecuting officials in the Attorney General's Office, Parliament, and other government institutions, the KPK seems to have few remaining friends in Indonesia's law enforcement community (see reftels) and the tensions have spun a web of intrigue. ¶3. (SBU) According to the drib-and-drab of leaked reports, for example, the KPK caught Indonesian police investigation head Susno (one name only) allegedly asking for a bribe. Apparently as retribution, the police began investigating KPK commissioner Chandra Hamzah for unlawfully approving a wiretap connected to the Antasari Azhar case and for his alleged involvement in an extortion case. The recent suspension of Antasari Azhar--a major player in the KPK--and the rumors of investigations into the remaining KPK commissioners have been blows to the KPK's clean image. ¶4. (C) President Yudhoyono has asked the bodies to work out their differences outside of the public eye and that intervention seems to have worked for the moment. Commissioner Hamzah told poloff recently that the police were no longer investigating his activities, although he did not think that the rivalry was over. He remarked that police efforts seemed to be directed toward investigating the July 17 bombings in Jakarta at this point. TROUBLE ON A NEW FRONT ¶5. (SBU) The KPK is facing trouble on another front. On July 24, Attorney General Hendarman Supandji announced that the AGO had sufficient evidence to begin a formal corruption investigation into the KPK. Although he would not release details, the media reported that the investigation was related to allegations that several KPK officials had accepted bribes. According to the reports, the KPK was investigating a private company for bribing lawmakers and some of its officials purportedly took bribes. BILLS STILL PENDING IN PARLIAMENT ¶6. (SBU) Parliament is also in on the act. It is discussing two key anti-corruption bills. The first is a bill that would establish a permanent Anti-Corruption Court (ACC). Established in 2002, the ACC's mandate was to handle cases involving high-level government officials, significant losses to the state, or strong public interest. The ACC only hears cases brought by the KPK. In 2006, the Constitutional Court declared that the ACC was unconstitutional and gave Parliament until December 2009 to pass a revised law on the body. Although many anti-corruption activists worry that the ACC bill, in its current form, would hinder Indonesia's anti-corruption drive (see reftel B),the second bill, which would amend the 2001 Law on Corruption, could deliver a more serious blow to the KPK. ¶7. (SBU) The proposed amendment to the 2001 Law on Corruption could constrain the powers of the KPK. The KPK is currently able to conduct its own investigations, prosecutions, wiretaps and supervise corruption cases handled by the AGO. If the KPK believes the police and AGO have mishandled an investigation, the KPK can take over the case. Although the commission would still have investigative powers, the proposed amendment would lessen the independence JAKARTA 00001281 002.2 OF 002 of the KPK. TRYING TO FULFILL A MANDATE ¶8. (C) Whether the KPK deserves all the scrutiny being heaped on it is a question many Indonesians are asking. Anti-corruption civil society groups have been divided in their response to the flak the KPK is taking. Several anti-corruption watchdogs have denounced the investigation of the KPK by the police and AGO, stating that the investigation is part of a systematic effort to weaken the high-profile KPK. Other anti-corruption activists, who were long disappointed with the KPK due to the various allegations made against it, have applauded efforts to hold the anti-corruption institution accountable. Both sides acknowledge, however, that if additional KPK commissioners are declared suspects by the police, the KPK--which is already feeling squeezed--would be hard pressed to fulfill its mandate. HUME