GOI INTEREST IN HIGH-LEVEL ANTICORRUPTION DIALOGUE

C O N F I D E N T I A L SECTION 01 OF 03 JAKARTA 001349 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: 08/12/2019 TAGS: PGOV KJUS KCOR ID SUBJECT: GOI INTEREST IN HIGH-LEVEL ANTICORRUPTION DIALOGUE REF: JAKARTA 1313 AND PREVIOUS Classified By: DCM Ted Osius, reasons 1.4(b+d). ¶1. (C) SUMMARY: Indonesian law enforcement and anticorruption agencies would welcome a high-level USG-GOI dialogue on anticorruption and related anticrimes. During INL Director David Luna's visit to Jakarta, August 10-11, the three primary corruption investigation and prosecution bodies in Indonesia expressed a desire for greater anticorruption collaboration and suggested that a bilateral dialogue between respective agencies could help promote GOI interagency collaboration. Such a dialogue could be announced at the presidential level and be modeled on or similar to high-level dialogues on anticorruption with other strategic partners such as China and Russia, which include private sector participation. END SUMMARY. SETTING THE STAGE FOR GREATER COLLABORATION ¶2. (C) Bureau of INL Director for Anticorruption and Anticrime Programs David Luna met with representatives from the Attorney General's Office (AGO),the Indonesian National Police (INP),and the Corruption Eradication Commission (KPK) on August 10-11 to discuss how the USG can best support Indonesia's anticorruption efforts. Although each of the anticorruption bodies expressed appreciation for the support the GOI has received from the U.S. on corruption eradication, each suggested that institutional rivalries and a lack of coordination have hampered comprehensive efforts to combat corruption in Indonesia. All representatives underscored that corruption impedes Indonesia's national development strategies and weakens public trust and confidence in public service delivery and the rule of law. ¶3. (C) GOI interlocutors said that, especially if it is a priority during President Obama's visit, the U.S. could play a critical role in fostering dialogue, coordination, and cooperation among the agencies. This initiative could support the Government of Indonesia's efforts to combat corruption. Although the framework for such a dialogue would need to be determined, many of the implementing elements are already in place. Through DOJ/OPDAT, the USG has a strong relationship with the AGO; the USG has supported corruption investigations by the INP through DOJ/ICITAP; MCC assistance to the KPK has made the KPK a stronger investigative organization; and the Memorandum of Understanding between the KPK and the FBI has fostered greater collaboration between those bodies. AGO'S ANTI-CORRUPTION TASK FORCE ¶4. (C) Corruption investigations at the Attorney General's Office have been hampered by lack of commitment at higher levels, AGO Anticorruption Task Force prosecutor Narendra Jatna told Luna. Although the AGO has handled a significant number of corruption cases, its ability to successfully prosecute those cases has been hindered by bureaucratic roadblocks. Before investigating a senior GOI corruption suspect, the AGO must seek permission from the President's office and other Ministries. Obtaining this permission has been procedurally difficult. Jatna said that buy-in from AGO leadership and the President's office for corruption prosecutions could smooth this bureaucratic process. KPK WELCOMES INTERNATIONAL COOPERATION ¶5. (C) Indonesia's Corruption Eradication Commission would welcome a higher level of international cooperation. Giri Suprapdiono, the Coordinator for International Cooperation, noted that one of the greatest threats to the KPK was a lack of commitment by the elements in the GOI to Indonesia's anticorruption drive, citing two draft laws in Parliament that could strip the KPK of prosecutorial powers (see reftels). He mentioned that institutional rivalries between the AGO, the Police, and the KPK prevented the anticorruption bodies from operating at optimal levels and said the U.S. could help foster collaboration between the agencies by promoting GOI interest. KPK officials appreciated the assistance that the USG has provided to date in strengthening various capacities. However, the KPK specifically requested additional assistance from INL, FBI, and other law enforcement agencies on training in asset tracing and financial forensics related to the growing sophistication of corrupt officials in hiding their assets overseas. JAKARTA 00001349 002 OF 003 INDONESIAN POLICE ¶6. (C) Hadiatmoko, the Deputy Chief of the INP's Criminal Investigative Division, agreed that a high-level dialogue could be useful. He briefed on the growing threats posed by criminal organizations and corruption. Hadiatmoko indicated that corruption helped facilitate a variety of criminal activities in Indonesia and was keenly interested in enhancing cooperation with the United States to combat transnational crime, terrorism, and corruption. In addition to expressing a desire for additional training and equipment, Hadiatmoko said the greatest impediment to the INP's corruption investigations was lack of resources, noting that the police have 10 percent of the resources of the KPK, despite having investigated almost 300 corruption cases last year compared to the KPK's 50. He indicated that a priority for INP was to strengthen anticorruption efforts and to develop a more specialized unit to investigate corruption. Hadiatmoko thought a dialogue between the United States and Indonesia could help promote greater interagency collaboration among the KPK, AGO and INP. Given the growing links between terrorism, crime and corruption, Hadiatmoko was also interested in the trans-Pacific law enforcement network that INL is advancing in the region to combat and dismantle illicit networks. NGO INVOLVEMENT ¶7. (C) Erry Hardjapamekas, former KPK commissioner and Chairman of the Center for the Study of Governance at Universitas Indonesia (established through the Roderick Hills Program on Governance at the Center for Strategic and International Studies),suggested that the USG and GOI consider a governmental dialogue with a parallel NGO or private sector dialogue on anticorruption at the time of President Obama's proposed trip to Indonesia. Hardjapamekas said the comprehensive partnership could help President Yudhoyono promote a stronger anticorruption effort in Indonesia, promote greater cooperation within the GOI, and strengthen NGO efforts through public-private partnerships. Hardjapamekas mentioned that the USG/Anticorruption arrangements with Russia and with China could be models for a dialogue in Indonesia. He said a possible deliverable from the presidential dialogue would be a GOI commitment to guarantee the integrity of all anticorruption bodies in Indonesia, which could foster partnerships between the KPK, AGO, and INP. DEPLU SUPPORTED IDEA ¶8. (C) Giving an overview of the current dynamics within the GOI on anticorruption, Director North and Central American Affairs at the Department of Foreign Affairs (DEPLU) Bunyan Saptomo noted that a dialogue on anticorruption could be useful to advancing our Comprehensive Partnership. Luna mentioned that the KPK, AGO, and INP had all suggested that greater involvement and cooperation at higher levels of the U.S. and Indonesian governments could help sustain and strengthen Indonesia's anticorruption efforts. Saptomo said Indonesia appreciated the already high degree of engagement between the U.S. and Indonesia and noted that our close cooperation on anticorruption and anticrime showed our mutual commitment to overcoming the growing threats posed by this transnational crime. Saptomo hoped that President Obama would engage President Yudhoyono and have anticorruption/anticrime as a key part of the overall strategic framework between the two countries. He said he looked forward to strengthening and enhancing Indonesia-U.S. law enforcement cooperation. A HIGH-LEVEL U.S.-INDONESIA DIALOGUE WOULD ADVANCE IMPORTANT NATIONAL INTERESTS ¶9. (C) President Obama,s visit presents an excellent opportunity to develop a high-level anticorruption dialogue between the two countries. Given the overwhelming response and strong message by GOI interlocutors during the visit by INL Director Luna to strengthen anticorruption cooperation with the United States, we believe that the GOI would be receptive to such a proposal. Corruption is a systemic problem throughout the government and all levels of Indonesian society. While President Yudhoyono has made anticorruption a priority in his administration, having a strategic dialogue with the United States could strengthen JAKARTA 00001349 003 OF 003 Yudhoyono's economic growth and reform efforts. A strong U.S. anticorruption partnership could provide critical links between the GOI interagency, promoting a holistic anticorruption approach. In addition to being a linchpin for democracy, the rule of law, economic development, and foreign investment, U.S. anticorruption cooperation will also help Indonesian law enforcement agencies to more effectively combat transnational crime, terrorism, and other illicit threats. ¶10. (SBU) Mission will follow-up with the GOI to explore a potential framework for the proposed dialogue. Mission will explore a parallel track for private sector input on obstacles to investment in Indonesia, of which corruption is a significant one. HUME