Organizational Hubris Damages the Indonesian National

UNCLAS SECTION 01 OF 02 JAKARTA 002012 SENSITIVE SIPDIS DEPT FOR EAP, EAP/MTS, EB/TPP, EB/TPP/BTA, DRL, DRL/AWH, S/CT, INL FOR BARCLAY, DOJ FOR DAAG SWARTZ, ICITAP FOR TREVILLIAN/BARR DRL FOR JKIM FBI FOR SETUI/SSA ROTH NCTC WASHDC NSC FOR EPHU E.O. 12958: N/A TAGS: PGOV PHUM ECON ETRD SNAR KJUS KCOR ID SUBJECT: Organizational Hubris Damages the Indonesian National Police REF: (A) JAKARTA 1944; (B) JAKARTA 1965; (C) JAKARTA 1950 AND PREVIOUS ¶1. (SBU) This cable is sensitive but unclassified. Please handle accordingly. ¶2. (SBU) SUMMARY The row between Indonesian National Police (INP) and the Corruption Eradication Commission (KPK) has damaged the reputation of Police Chief Bambang Hendarso Danuri and that of the entire INP. Danuri's preference for loyalty over performance, both in his attempt to retain Chief Detective Susno Duadji and later in replacing him with someone with a questionable reputation, damages the INP as an institution. Danuri's leadership style has negatively impacted morale among INP leadership, further eroded public confidence, and, for many, called into question his ability to promote institutional reform in the INP. END SUMMARY All the President's Men ¶2. (SBU) Danuri has a reputation as a perfectionist, micro-manager, and disciplinarian who takes few risks and promotes unquestionable loyalty. All of these characteristics served him well throughout his career and made him former Police Chief Sutanto's single recommendation as his replacement to President Yudhoyono. In the aftermath of the July 17 Jakarta bombings and the KPK controversy, Damuri personally chaired marathon meetings involving most of the police force's general officers. from This has made day-to-day tasks and engagement with the INP challenging. ¶3. (SBU) Danuri previously established a reputation as a strict disciplinarian. Since his appointment in October 2008, he has disciplined or removed over 120 command officers from colonels to two-star generals. Danuri once removed an entire district police contingent for failure to satisfactorily respond to illegal logging activities in Kalimantan. Many of these infractions were minor, but senior general officers were disciplined, usually within 72 hours of the infraction. Two months ago, Danuri transferred almost 600 mid-level and senior management personnel causing organizational and operational disruption. ¶4. (SBU) Danuri's reluctance to reprimand Susno has compromised his leadership as rumors swirled around his subordinate. Even after Susno issued inconsistent statements regarding his role in the Bank Century case and became directly implicated on tape in an alleged plot to frame two KPK Commissioners, Danuri continued to defend him. Danuri stood by Susno after President SBY's Team of Eight recommendations that denounced the INP actions were made, framing his loyalty as a matter of law. ¶5. (SBU) Personal loyalty was a major factor in the initial decision to retain Susno and to later replace him. Danuri and Susno have longstanding ties to SBY, as does Susno's replacement Ito Sumardi. Susno and Sumardi are close friends and classmates, working together in Surabaya in 1999-2001. Embassy officials have learned that an important factor in Susno's resignation negotiations was the promise that Sumardi replace him. Despite other more senior and qualified generals, and undisclosed gambling and illegal logging investigations against Sumardi while in Riau, Danuri tapped him to replace Susno. ¶6. (SBU) In Embassy interactions, Sumardi comes across as a stalwart advocate of a closer relationship with the USG. He is responsive and to date has been a progressive reform-minded interlocutor. It remains to be seen how he will manage the multiple pressures of the situation he has now inherited. Susno, A Muzzled Crocodile? ¶7. (SBU) Susno, the former head of Indonesia's financial intelligence unit (PPATK),was the third most powerful man in the INP. He was the gatekeeper to all major investigations managed by JAKARTA 00002012 002 OF 002 his detectives, including the ongoing Bank Century scandal. The INP CID is not a sophisticated investigative body. General officers often personally conduct sensitive investigations and involve themselves in handling evidence and interviews that more developed law enforcement organizations would delegate to junior officers. Susno held the advantage in understanding how financial investigations are processed and in his position had the power to direct or redirect any investigation. ¶8. (SBU) Susno knows perhaps more than anyone else regarding the Bank Century investigation. The question is what exactly he knows and whether he will remain quiet. He was incensed and complained vociferously to Embassy officials when he found out his cell phone was allegedly tapped by the KPK. Susno took this personally, and he has expressed his anger to anyone who would listen. INP on the Defensive? ¶9. (SBU) What began months ago as a conflict between the KPK and the INP has pushed the INP into a defensive posture. As the investigation in to the Bank Century scandal heats up, the INP will likely find itself under increased public scrutiny. The situation may prove too difficult for Danuri to manage the possible outcome. HUME