INDONESIA: 2009 COUNTRY REPORTS ON

UNCLAS SECTION 01 OF 03 JAKARTA 000048

SENSITIVE
SIPDIS

DEPT FOR EAP, EAP/MTS, EAP/MLS, EAP/RSP, EAP/INR, S/CT, INR
S/CT FOR RHONDA SHORE
NCTC
NSC FOR D.WALTON
KUALA LUMPUR FOR G.CHAPMAN

E.O. 12958: N/A
TAGS: PTER PREL PINS ASEC ID
SUBJECT: INDONESIA: 2009 COUNTRY REPORTS ON
COUNTERTERRORISM

REF: STATE 109980


1. (SBU) This message is Sensitive but Unclassified --
Please handle accordingly.


2. (SBU) The following is the draft text of the 2009 Country
Report on Terrorism for Indonesia. Please treat as Sensitive
until the report is finalized for submission to Congress.

Begin text:
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GENERAL ASSESSMENT
The Government of Indonesia reacted strongly and decisively
to the July 17, 2009 bombings of the Jakarta Ritz Carlton and
J.W. Marriott hotels, which killed nine people (including the
two bombers) and injured over 50 people in the first attacks
in Indonesia in almost four years.

The Indonesian government's successful counterterrorism
efforts leading up to and stemming from the bombings led to
the arrests of 14 operatives and the deaths of nine,
including Noordin Muhammad Top, the Malaysian leader of a
splinter Jemaah Islamiyah (JI) group based in Indonesia. Top
was believed to have overseen the 2003 Jakarta J. W. Marriott
bombing, the 2004 bombing of the Australian Embassy, and the
2005 Bali bombings and was number one on Indonesia,s most
wanted list for several years.

As in the previous bombings, Westerners were targeted. The
Marriott suicide bomber entered a private dining room where a
regular breakfast meeting of prominent business community
representatives, primarily expatriates, was held. The bomber
set off an improvised explosive device (IED) that killed six
people, including the 18 year-old bomber. Approximately five
minutes later, a second bomber set off an IED in the Ritz
Carlton restaurant, killing himself and two others. An
undetonated bomb was later discovered in a J.W. Marriott
guest room where one of the bombers stayed during the two
days before the attacks.

The level of planning for the attacks, including the planting
of a JI operative in the hotels, floral shops for at least
two years prior to the bombings, indicated Top,s network's
capabilities had grown in sophistication. As the
investigation developed, it became apparent the network was
larger in numbers and geographical reach than previously
thought. The ages of the Marriott bomber and other
operatives indicate Top and his associates successfully
recruited youths with no previous criminal records. Family
links between operatives, including by marriage, were evident
throughout the network.

PASSAGE OR IMPLEMENTATION OF LEGISLATION PERTAINING TO
TERRORISM OR TERRORIST FINANCING
Regarding terrorism legislation, the Parliamentary Commission
on Security and Defense proposed revisions to the 2003
Terrorism Law. As of the end of 2009, Parliament had not yet
begun to review the revisions. It was not clear when they
would begin to do so.

One proposed revision to the law would allow a suspect to be
detained for two years without trial should his/her
activities be deemed an endangerment to Indonesia's security.
Under the current law, the Indonesian police must formally
name a subject as a terrorism defendant within seven days
after the arrest and can then be detained for up to four
months without charges. The suspect must be released after
the four month period expires if no hard evidence links him
to terrorism.

Another proposed revision to the law would allow the police
to crack down on individuals and groups that glorify
terrorism and openly preach hatred against those of a
different faith. This particular law would target radical
clerics who support radical jihad, or war, in their religious
lectures.

Another proposed revision to the law includes the

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establishment of a Counterterrorism Coordination Agency
composed of governmental and social components, including
representatives of most of the GOI Ministries, the Attorney
General's Office, the National Police (INP),the State
Intelligence Agency (BIN),and the Armed Forces (TNI).

The Coordinating Minister for Political, Legal, and Social
Affairs would head the body and answer directly to the
president. The agency would coordinate GOI CT policy and
activities, and serve as a central crisis center in the event
of a terrorist attack. It has not yet been determined
whether the agency would have operational capacities.
Elements of the agency would also coordinate with the
Religious, Education, and Information Affairs Ministries to
implement counter- and de-radicalization programs.

A final proposed revision to the law would allow the
Indonesian military (TNI) and the State Intelligence Agency
(BIN) to work more closely with the police, directed by the
Counterterrorism Coordination Agency, to counter terrorist
acts, including piracy, air hijacking and hostage-taking.

Regarding developments in terrorist financing legislation,
the Indonesian government made substantial efforts to draft
effective terrorism financing legislation that meets FATF
standards and creates an effective mechanism to freeze
terrorist assets pursuant to UNSCRs 1267 and 1373.

An Indonesian interagency team headed by PPATK, the
Indonesian Financial Intelligence Unit, worked to draft new
terrorism financing legislation. This draft law addresses
criticisms raised in the Asia Pacific Group on Money
Laundering (APG) 2008 evaluation of Indonesia, which noted
significant deficiencies in Indonesia,s statutory and
regulatory framework to combat money laundering and terrorism
financing.

The draft legislation is a significant improvement over
previous terrorist financing legislation as it creates a
mechanism to trace, freeze, seize and confiscate terrorist
assets pursuant to UNSCRs 1267 and 1373, and clarified and
broadened the definition of support to a terrorist
organization. The draft legislation does not specifically
address the use of non-profit organizations (NPOs) and
non-governmental organizations (NGOs) to finance terrorism, a
sensitive topic. Although PPATK interlocutors assert the
draft legislation will apply to non-profits, it is unclear
whether there would be political will to apply the
legislation to non-profits. The GOI initiated a review of
its domestic NPO sector in July 2009, as requested by the
APG. The review, expected to be completed in July 2010, is a
key part of the government's effort to improve regulation and
oversight of the NPO sector. To date, there has been only
one successful terrorism financing prosecution in Indonesia,
a function of poorly drafted legislation, and a lack of
training for police and prosecutors.

The number of Suspicious Transaction Reports received
averaged over 1,960 per month in 2009, through November
(compared to over 900 per month in 2008). Through November
2009, there have been 26 money laundering convictions, 6 of
which occurred in 2009.

The Victim and Witness Protection Agency LPSK is in the
process of developing procedures to assist victims of crime,
including terrorist activities, and to shelter witnesses from
criminals including terrorist organizations.

INITIATIVES AND PROGRAMS PERTAINING TO DERADICALISM AND
COUNTERING VIOLENT EXTREMISM
The Government of Indonesia continued counter violent
extremism (CVE) programs, but concrete, systemic information
as to the effectiveness of the programs is not available to
date. The National Police and the Ministry for Political,
Legal, and Security Affairs offered counter-violence programs
to youth across the country, including sports events,
television programs, and traditional puppet shows (a strong
cultural forum in Indonesia).

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REHABILITATION AND REINTEGRATION OF TERRORISTS INTO
MAINSTREAM SOCIETY
The Indonesian National Police continued its prisoner
assistance program to de-radicalize convicted terrorists,
primarily with the assistance of two former terrorists, Ali
Imron and Nasir Abas who were convicted for their
participation in the 2002 Bali bombings and subsequently
agreed to assist police with deradicalization efforts. The
program identified individuals who might be open to more
moderate teachings and focused on providing spiritual support
to the men and modest financial support to their families.

BORDER SECURITY
A Presidential Regulation was issued in 2009 calling for a
new national identification card system. Every Indonesian
citizen and legally resident foreigner aged 17 years old or
above (or is married if below age 17) will be required to
apply for the card. Each card/citizen will be assigned an
identification number. The card will contain bio data,
including fingerprints and a photo. The Indonesian
government expects to implement this program in 2011.

BILATERAL COOPERATION
The United States and Indonesia continued to enjoy excellent
cooperation on issues related to international terrorism.
The Indonesian government has worked closely with the United
States on terrorism cases and indicated its interest in
ongoing assistance and cooperation. Although there is no
mutual legal assistance treaty in place, there is
considerable sharing of information between Indonesia and the
United States, and mechanisms exist for the formal transfer
of evidence.

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End text.


3. (U) Mission point of contact for this report is Poloff
Brigid Weiller: weillerbr@state.gov.

HUME