INDONESIA-2009 INTERNATIONAL NARCOTICS CONTROL STRATEGY

UNCLAS SECTION 01 OF 05 JAKARTA 000074

SENSITIVE
SIPDIS

DEPT FOR EAP, EAP/MTS, EAP/MLS, EAP/RSP, EAP/INR, S/CT, MCC
DEPARTMENT FOR INL/J. LYLE, A. BLOOMQUIST
NSC FOR D. WALTON
SINGAPORE FOR DEA

E.O. 12958: N/A
TAGS: PGOV PREL SNAR KMCA MCC ASEC ID

SUBJECT: INDONESIA-2009 INTERNATIONAL NARCOTICS CONTROL STRATEGY
REPORT (INSCR) PART 1, DRUGS AND CHEMICAL CONTROL

REF: STATE 097309


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


2. (SBU) The following is the draft text of the 2009-2010 Indonesia
International Narcotics Control Strategy Report (INSCR) Part 1,
Drugs and Chemical Control for Indonesia. Please treat as
Sensitive, but Unclassified until the report is finalized for
submission to Congress.

Begin text:
-

I. Summary
The most drastic and positive counternarcotics development for 2009
in Indonesia--the fourth largest country in population in the
world--was the new narcotics law signed by the Indonesian President
on October 12, 2009, which established the Indonesian National
Narcotics Board (BNN) as an independent law enforcement agency. The
law includes drastically expanded investigative powers for BNN,
including direct engagement with prosecutors to initiate
prosecutions, and the authority to conduct wiretapping, and ability
to reach out internationally to initiate and conduct transnational
investigations. Indonesia's new counternarcotics law also grants
BNN more authority to investigate and punish illegal trafficking of
precursor chemicals, effective January 1, 2010.

Indonesia is a producing, consuming, and transit country.
Previously, clandestine MDMA (Ecstasy) and methamphetamine
laboratories were large-scale, but in 2009, the clandestine
laboratory operations that were seized were smaller in size. In
2009, Indonesia increased seizures of smaller laboratories with
smaller outputs. This indicates manufacturing organizations are
downsizing their laboratories, most likely in response to Indonesian
law enforcement's effective seizures of large production
laboratories. This development indicates manufacturing
organizations recognize they have much more to lose if large
quantities of their products are seized at any one given location.
There are also indications that laboratories are being moved outside
large metropolitan areas to rural areas where law enforcement is not
as prevalent.

Coastlines and a lack of border and port security resources remain
an issue for counternarcotics efforts. However, BNN and the
Indonesian Navy (TNI-Navy) established a memorandum of understanding
(MOU) in November 2008 to conduct joint maritime counter-narcotics
operations. In December of 2009, BNN exercised the MOU with
TNI-Navy, Customs, Immigration, Quarantine and Fisheries by putting
26 ships under the command and control of BNN for 7 days patrolling
Indonesia's maritime borders from Aceh to Pontianak. Further joint
maritime operations are scheduled for 2010.

Methamphetamine, ketamine and Ecstasy are the main narcotics
smuggled in via waterways. Heroin, methamphetamine, ketamine and
Ecstasy are imported via airways. The majority of marijuana
trafficking is conducted by land transportation from Aceh to other
areas of Indonesia through the Sunda Straits via waterway.

Some remote seaports on the Malacca Strait are manned by a handful
of customs and BNN personnel. Inadequate health care, demand
reduction and rehabilitation programs remained an issue. The amount
of methamphetamine imported into Indonesia and the number of
methamphetamine laboratories in Indonesia indicated ready
availability of methamphetamine, which is believed to be the most
abused drug in Indonesia.

The Indonesian counter narcotics code is sufficiently inclusive to
cover arrest, prosecution and adjudication of narcotics cases.
Nevertheless, corruption in Indonesia is an on-going challenge to
the rule of law. The level of political corruption in Indonesia
seriously limits the effectiveness of narcotics law enforcement and
poses the most significant threat to the country's counter drug
strategy. Upon the commission of BNN as a law enforcement entity,
as noted above, BNN received authority to conduct narcotics-related
investigations; this will greatly increase BNN's effectiveness in
dismantling large drug trafficking organizations.


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II. Status of Country

The majority of pseudoephedrine imported into Indonesia is from
China. Large-sized clandestine laboratories seized in Indonesia are
becoming a thing of the past, and smaller-sized laboratories are
becoming prevalent in Indonesia. Laws are still lax, but beginning
in 2010, agencies will have more authority to regulate the
importation of precursor chemicals. Numerous legitimate large
international pharmaceutical and chemical corporations continue to
operate throughout Indonesia.

The scale of amphetamine type stimulant (ATS) manufacturing in
Indonesia Q`fXE:phetamine.

Chinese and Taiwanese importing, distributing and manufacturing
organizations remain the most significant drug trafficking threat in
Indonesia.

Iranian drug trafficking organizations (DTOs) that smuggle large
amounts of methamphetamine into Indonesia via Iranian couriers are
an emerging threat. During October 19-20, 2009 alone, Indonesian
customs seized approximately 50 kilograms of3C{_i_~QQ a
warrant. Corrupt investigators are suspected of initiating
investigations to elicit bribes from suspects. Corrupt prosecutors
in narcotics cases reportedly request bribes for a reduction in
charges with defense attorneys serving as facilitators.

Unauthorized wire taps conducted by the Indonesian National Police
against the Anti-Corruption Commission came to light in mid-2009,
inflaming the public's perception of the police and judicial system
as corrupt.

Agreements and Treaties. Indonesia is a party to the 1988 UN Drug
Convention, the 1971 UN Convention on Psychotropic Substances and
the 1961 UN Single Convention as amended by its 1972 Protocol.
Indonesia is a party to the UN Convention against Corruption and has
signed but not yet ratified the UN Convention against Transnational
Organized Crime.

Cultivation/Production. The production of MDMA, methamphetamines,
and other synthetic drugs is one of the most significant drug
threats in Indonesia. Indonesian and Chinese trafficking syndicates
exploit Indonesia's lax precursor chemical controls, weak law
enforcement, and political corruption to establish MDMA and
methamphetamine laboratories capable of producing multi-hundred
kilogram quantities.

These syndicates secure precursor chemicals from China. Previously,
production syndicates relied upon chemists trained in the
Netherlands for the production of MDMA (Ecstasy),as well as
chemists from Taiwan and Hong Kong for the production of crystal
methamphetamine. However, recent laboratory seizures by Indonesian
law enforcement showed that Indonesians and Chinese-Indonesians are
capably taking the role of chemists.

A MDMA and methamphetamine laboratory seizure took place in Depok,
West Java on May 4, 2009. This two-month-long investigation was
initiated by the Metro Jaya Police Department. As a result of this
investigation, 4 tons of various chemicals, 30 kilograms of
methamphetamine, 128 kilograms of ephedrine and 1700 Ecstasy pills
were seized, and 15 people were arrested. Police officials
estimated that if all the raw materials in the laboratory were used,
11.5 million Ecstasy pills could have been produced.

Marijuana is cultivated throughout Indonesia; the equatorial climate
of Sumatra allows for year-round growing and cultivation of
marijuana. Large-scale (greater than 20 hectares) marijuana
cultivation occurs in the remote and sparsely populated regions of
the province, often in mountainous areas. Regional marijuana
cultivation syndicates are believed to be exploiting police

JAKARTA 00000074 003 OF 005


use for the well-to-do in Indonesian society and is readily
available at high-end clubs in Jakarta. Officials suspect cocaine
is being transshipped through Indonesia via commercial air carrier
en route to Australia and Japan, with small user amounts remaining
in Indonesia for use by Western tourists.

III. Country Actions Against Drugs In 2009

Policy Initiatives. Indonesia completed an extensive overhaul of its
national narcotics legislation on 12 October 2009, giving BNN
national policy making and enforcement authorities in the areas of
prevention, rehabilitation, law enforcement, legal affairs and
cooperation with prosecutors, and community empowerment and
outreach. BNN will direct its law enforcement efforts against
larger national and international drug syndicates while the national
police will continue to handle local and street level drug crimes.

BNN is currently expanding offices to all 32 provinces, and 482
cities and municipalities. In addition, BNN is expanding its staff
and law enforcement agents for current strength of approximately 500
to 5000 in the next 3 to 5 years. BNN currently funds and runs a
drug rehabilitation center for approximately 200 patients and is in
the process of building a national narcotics training academy funded
by the U.S.

According to BNN, the GOI has established policies and strategies in
a "goal-oriented rolling Plan of Action", consisting of three-year
stages. These stages will continue until Indonesia reaches a
drug-free condition, hopefully by 2015. The primary policy goals of
Indonesia's National Drug Plan, as defined by the Government of
Indonesia, are: 1) To minimize the level of illness, disease, injury
and premature death associated with the use of illicit drugs; 2) To
minimize the level and impact of drug-related crime and violence
within the community; and 3) To minimize the loss of productivity
and other economic costs associated with illicit drug use.

Law Enforcement Efforts. Both the Indonesian National Narcotics
Board (BNN) and the Indonesian National Police (INP) Narcotics and
Organized Crime Directorate continued to improve their ability to
investigate and dismantle national and international drug
trafficking syndicates. BNN and the Narcotics Directorate have
become increasingly active in regional targeting conferences
designed to coordinate efforts against transnational drug
organizations.

BNN and the Indonesian National Police, Narcotics and Organized
Crime Directorate, have a good working relationship with European
(French, Belgium, Netherlands) and regional (Thailand, Malaysia,
Singapore, Philippines, Australian, Japan, Korea) counterparts and
participate in joint programs and investigations with the Department
of Justice Drug Enforcement Agency (DEA) and International Criminal
Investigative Training Assistance Program (ICITAP),JIATF West, and
other U.S. agencies.

Per BNN statistics for the period of January through June 2009,
there were a total of 17,910 drug-related arrests. Indonesia seized
the following amounts during the time period: 4,545 kilograms of
marijuana, 2 kilograms of cocaine, 817 kilograms of Ecstasy, and
3,724 kilograms of methamphetamine.

The Indonesian Narcotics Control Board (BNN) continues to strive to
improve interagency cooperation in drug enforcement, interdiction,
and precursor control. In 2005, under the auspices of BNN, the
U.S.-sponsored Interagency Counter Drug Operations Center (JIACDOC)
was opened in Jakarta. JIACDOC is an Indonesian intelligence and
operations center focused on counternarcotics and transnational
crime intelligence collection and interdiction. It is jointly
staffed by the Indonesian National Police, Indonesian Customs,
Indonesian Immigration and other Indonesian government
organizations.

Currently, JIACDOC is manned by approximately 60 personnel. Under
the new legislation, JIACDOC will expand to become the Indonesian
National Narcotics Board Intelligence center with a staff of
approximately 300 personnel in the next 3-5 years. In addition, six
JIACDOC outstations were established at key airports and seaports
this year to provide BNN and its interagency partners with a

JAKARTA 00000074 004 OF 005


criminal information management network to consolidate information
collection, investigations, and enforcement operations from the
national to local level.

The INP Narcotics and Organized Crime Directorate continues to
improve its ability to investigate and dismantle international drug
trafficking syndicates, as well as cooperate with other
international law enforcement agencies. The Narcotics Directorate
has become increasingly active in regional targeting conferences
designed to coordinate efforts against transnational drug and crime
organizations. Members of the Directorate, BNN and Indonesian
Customs will attend the 2010 International Drug Enforcement
Conference scheduled to take place in Rio De Janeiro, Brazil.

Corruption. Indonesia has laws against official corruption and a
somewhat-effective anti-corruption commission. Despite these laws,
corruption in Indonesia is endemic. As a matter of government
policy and practice, the GOI does not encourage or facilitate the
illicit production or distribution of drugs or the laundering of
proceeds from illegal transactions.

Corruption of Indonesia's judiciary is pervasive and poses a
significant threat to the country's counter drug strategy.
Indonesian prosecutors' low wages encourage official corruption and
explain a low level of motivation. The average salary of an
Indonesian prosecutor with 15 years of seniority is approximately
$400 a month. Furthermore, corrupt police and investigators
reportedly abuse their authority by conducting illegal searches, as
Indonesian courts do not exclude evidence obtained without a
warrant. Corrupt investigators are suspected of initiating
investigations to elicit bribes from suspects. Corrupt prosecutors
in narcotics cases reportedly request bribes for a reduction in
charges with defense attorneys serving as facilitators.

Unauthorized wire taps conducted by the Indonesian National Police
against the Anti-Corruption Commission came to light in mid-2009,
inflaming the public's perception of the police and judicial system
as corrupt.

Agreements and Treaties. Indonesia is a party to the 1988 UN Drug
Convention, the 1971 UN Convention on Psychotropic Substances and
the 1961 UN Single Convention as amended by its 1972 Protocol.
Indonesia is a party to the UN Convention against Corruption and has
signed but not yet ratified the UN Convention against Transnational
Organized Crime.

Cultivation/Production. The production of MDMA, methamphetamines,
and other synthetic drugs is one of the most significant drug
threats in Indonesia. Indonesian and Chinese trafficking syndicates
exploit Indonesia's lax precursor chemical controls, weak law
enforcement, and political corruption to establish MDMA and
methamphetamine laboratories capable of producing multi-hundred
kilogram quantities.

These syndicates secure precursor chemicals from China. Previously,
production syndicates relied upon chemists trained in the
Netherlands for the production of MDMA (Ecstasy),as well as
chemists from Taiwan and Hong Kong for the production of crystal
methamphetamine. However, recent laboratory seizures by Indonesian
law enforcement showed that Indonesians and Chinese-Indonesians are
capably taking the role of chemists.

A MDMA and methamphetamine laboratory seizure took place in Depok,
West Java on May 4, 2009. This two-month-long investigation was
initiated by the Metro Jaya Police Department. As a result of this
investigation, 4 tons of various chemicals, 30 kilograms of
methamphetamine, 128 kilograms of ephedrine and 1700 Ecstasy pills
were seized, and 15 people were arrested. Police officials
estimated that if all the raw materials in the laboratory were used,
11.5 million Ecstasy pills could have been produced.

Marijuana is cultivated throughout Indonesia; the equatorial climate
of Sumatra allows for year-round growing and cultivation of
marijuana. Large-scale (greater than 20 hectares) marijuana
cultivation occurs in the remote and sparsely populated regions of
the province, often in mountainous areas. Regional marijuana
cultivation syndicates are believed to be exploiting police

JAKARTA 00000074 005 OF 005


limitations by locating cultivation sites in remote and high
elevation areas where there is little law enforcement presence.

The Indonesian National Police report that marijuana trafficking in
Indonesia is controlled by Indonesian syndicates based out of
Jakarta. The majority of marijuana cultivated in Indonesia is
consumed domestically and typically is not trafficked to the
international market. Although cocaine seizures continue to occur
in major Indonesian airports, the market for cocaine in Indonesia is
believed to be very small.

Historically, MDMA has been smuggled into Indonesia from sources in
the Netherlands or produced in China and smuggled to Indonesia by
Chinese organized crime syndicates based in Hong Kong. However, in
recent years, importation has been unnecessary as there has been
large-scale MDMA and methamphetamine production in Indonesia. MDMA
and methamphetamine produced in Indonesia is trafficked both
domestically and internationally.

Demand Reduction. The GOI views drug abuse and narcotics trafficking
as a major long-term threat to social and political stability. They
are also viewed as anti-Islamic activities. Government agencies
continue to promote counternarcotics abuse and HIV/AIDS awareness
campaigns through various media outlets. BNN is responsible for the
development of Indonesia's demand reduction programs and continued a
nation-wide anti-narcotics campaign.

IV. U.S. Policy Initiatives and Programs

Bilateral Cooperation. Indonesia and the U.S. maintain excellent law
enforcement cooperation in narcotics cases.
In 2009, DEA, in cooperation with the International Law Enforcement
Academy, provided a narcotics commander's course and training in
clandestine laboratories, chemical control, and basic intelligence.
DEA also provided training in airport interdiction and practical
applications.

USPACOM JIATF West funded and supervised the construction of a
200-person classroom for Indonesia's national counter narcotics
academy for 2009, and will continue to support additional academy
facilities in 2010.

JIATF West personnel trained BNN, customs, immigration and marine
police officers in basic computer and server administrator training,
basic law enforcement intelligence training, and basic analyst's
notebook training.

The Road Ahead. The U.S. continues to work with the INP and BNN to
standardize and computerize reporting methods related to narcotics
investigations and seizures, develop a drug intelligence database,
and build an information network designed to connect to the major
provinces of Indonesia. This will permit all Indonesian law
enforcement agencies to contribute to and access the database for
investigations. Also, the U.S. will work with the INP and BNN to
further expand the scope and impact of narcotics investigations
targeting the large-scale production of methamphetamine and MDMA in
Indonesia.

With the assistance of DEA, JIATF West is funding and helping plan
the construction of the new national counter narcotics academy. The
academy is expected to open in August of 2010 (construction began in
November 2009). It is expected that the academy will evolve into a
regional counterdrug center that will benefit Indonesian interagency
and regional partners.

In 2010, DEA is scheduled to officially open up a DEA office in
Jakarta to include one Country Attache, one Special Agent and one
Administrative Assistant.
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End text.


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

HUME