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Viewing cable 06JAKARTA3892, EAST JAVA POLICE CONFERENCE ON IPR LAWS

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Reference ID Created Released Classification Origin
06JAKARTA3892 2006-03-24 08:30 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Jakarta
VZCZCXRO0233
RR RUEHCHI RUEHDT RUEHHM
DE RUEHJA #3892/01 0830830
ZNR UUUUU ZZH
R 240830Z MAR 06
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 1728
RUEATRS/DEPT OF TREASURY WASHINGTON DC
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHKO/AMEMBASSY TOKYO 9712
RUEHBJ/AMEMBASSY BEIJING 3345
RUEHBY/AMEMBASSY CANBERRA 9259
RUEHUL/AMEMBASSY SEOUL 3633
RUEAIIA/CIA WASHDC
ZEN/AMCONSUL SURABAYA
UNCLAS SECTION 01 OF 02 JAKARTA 003892 
 
SIPDIS 
 
FROM AMCONSUL SURABAYA 0735 
 
DEPT FOR EAP/MTS AND EB/IFD/OMA 
TREASURY FOR IA-JEWELL 
COMMERCE FOR 4430-GOLIKE 
DEPARTMENT PASS FEDERAL RESERVE SAN FRANCISCO 
DEPT PASS USTR FOR WEISEL, KATZ, VESPINEL AND JGROVES 
DEPT FOR MILLENIUM CHALLENGE CORP 
SENSITIVE 
SIPDIS 
 
E.O. 12958:  N/A 
TAGS: KIPR EFIN EINV ECON PGOV ID
SUBJECT: EAST JAVA POLICE CONFERENCE ON IPR LAWS 
 
1. (SBU) Summary:  Several branches of the GOI and East 
Java government cosponsored an IPR seminar on March 4 to 
educate East Java area police chiefs on the importance of 
IPR to Indonesia and its economy.  Senior GOI and 
provincial officials used persuasive arguments and data to 
try and motivate 50 to 60 local police chiefs to more 
rigorously enforce existing Indonesian IPR laws.  After the 
seminar, East Java Police Chief Herman Sumawiredja met 
privately with the local police heads and urged them to 
step up their IPR enforcement, noting that IPR actions and 
arrests were easy and would count towards promotions.  He 
added that Indonesia National Police Chief Sutanto had 
personally called him to complain about the East Java 
police's poor performance on IPR enforcement.  According to 
Sumarwiredja, Sutanto said that Vice President Kalla is 
adamant police enforce IPR laws more rigorously and the VP 
is embarrassed by Indonesia's continued status on the U.S. 
Special 301 Watch List. End Summary. 
 
Surabaya IPR Seminar 
-------------------- 
 
2. (U) ConGen Surabaya attended a March 4 seminar on "Law 
Enforcement Socialization of Intellectual Property Rights". 
The Ministry of Law and Human Rights, the East Java Police, 
Vice Presidential Secretariat, Indonesia Music License 
Association (KCI), and the Indonesian Video Recording 
Association (ASIREVI) jointly sponsored the program.  The 
main presenters were Prof. Abdul Bari Azed, Director 
General of Intellectual Property Rights for the Ministry of 
Law and Human Rights, Hersadwi, Head of Economic Crimes 
Unit of the East Java Police, Henry Sulistiyo Budi from the 
Vice Presidential Secretariat.  A subsequent panel involved 
Ansori Sinungan, Wihadi Wiyanto, secretary general of 
ASIREVI and Munif Bahasuan, acting chairman of KCI.  The 
event drew fifty to sixty East Java local police department 
heads, and a dozen officials from local government law and 
human rights' offices. 
 
3. (U) The opening speakers focused on educating the 
audience on IPR by defining IPR, activities categorized as 
violating IPR, and other general information about IPR. 
According to Hersadwi, East Java Police seized 600,000 
pirated VCDs and arrested 361 suspects for IPR crimes 
during 2005.  He admitted these were small numbers compared 
to the total number of illegal VCDs in East Java, estimated 
at over 20 million.  However, police, with help, will 
continue their war on pirated products, he affirmed. 
 
4. (U) Prof. Bari explained that the number of IPR crimes 
remain high in Indonesia, especially from corporate 
properties, such as brand name consumer products and 
optical media products (VCDs, DVDs, CDs, CDROMs).  The 
number of pirated optical media products available in 
Indonesia has increased sharply since 2003, he noted.  In 
2005, there were an estimated 331 million pirated optical 
media products sold and only 39.7 million legal optical 
media products sold in Indonesia.  Bari explained that as a 
member of the WTO/TRIPS Agreement, Indonesia has committed 
to fight against IPR piracy.  Effectively enforced IPR laws 
will lead to economic development, will attract investment, 
and will encourage producers, music composers, and 
businesses to produce new ideas and jobs.  Reducing IPR 
piracy will also keep Indonesia from suffering economic and 
trade penalties levied by other countries, he explained. 
However, Bari acknowledged that IPR enforcement in 
Indonesia represents an implicit economic dilemma: 
Indonesians have limited purchasing power to buy legal, 
more expensive products.  Bari also detailed the lengthy, 
complex, and expensive process for companies to acquire IPR 
protection in Indonesia. 
 
5. (U) Ansori Sinungan admitted to his audience that the 
fight against IPR piracy in Indonesia faces many obstacles, 
such as the East Java office of Law and Human Rights' small 
 
JAKARTA 00003892  002 OF 002 
 
 
discretionary budget of USD 100 to combat IPR piracy. 
Budget constraints led his office to partner with police 
offices to provide support for IPR law enforcement.  Other 
obstacles to effective IPR law enforcement, according to 
Sinungan, are limited understanding of IPR and relevant 
laws by police, lack of consumer awareness of IPR laws, and 
limited enthusiasm among police to enforce the laws.  Like 
Bari, Sinungan underscored the high costs of poor IPR 
enforcement in Indonesia: his office has fielded many 
complaints from producers and investors about IPR, and some 
said they would not continue to invest in East Java.  He 
encouraged attending police officers to lead the fight 
against IPR piracy to support economic development in 
Indonesia.  He also detailed Indonesian IPR Law UU 29/2004, 
which complies with international standards. 
 
The Meeting After the Meeting 
----------------------------- 
 
6. (SBU) On March 8 EconOff Williams met with Ansori 
Sinungan to further discuss IPR issues.  According to 
Sinungan, directly after the March 4 seminar, local police 
officials were called in to a private meeting with East 
Java Police Chief Sumawiredja.  Sumawiredja reportedly gave 
them an "inspirational" speech regarding IPR enforcement 
expectations in East Java.  Sumawiredja apparently noted 
that he had been contacted directly by the Indonesian Chief 
of Police Sutanto regarding the East Java police's poor IPR 
enforcement record.  According to Sumawiredja, Sutanto said 
that Vice President Yusuf Kalla is adamant that IPR laws be 
enforced rigorously, and noted that Indonesia's placement 
on the IPR priority watch list is an embarrassment and 
hurts investment.  Sumawiredja reportedly said that IPR 
arrests should be easy and officers conducting arrests 
would receive extra "points" towards promotion.  He also 
threatened that a "lack of progress" on IPR enforcement 
would reflect negatively towards promotion. 
 
Comment 
------- 
 
7. (SBU) Sumawiredja prodding his subordinates to take 
action on IPR violators in East Java using promotions as 
the stick is a new management strategy.  The effort by 
Sumawiredja illustrates the concern of senior GOI officials 
with IPR piracy and movement of their directives to local 
levels.  There was a noticeable reduction in the 
availability pirated optical media products in three of the 
four primary retail markets for pirated optical media 
products recently surveyed by EconOff Williams.  The most 
dramatic reduction was at Tunjungan Center.  Previously, 
there were 80 to 100 small shops selling pirated optical 
materials.  Now many of those shops are closed with only a 
handful still openly selling pirated products.  According 
to shop owners, the police came through one to two months 
ago and confiscated their pirated inventory and warned not 
to continue or face arrest.  However, there have been no 
recent media reports of large seizures of pirated optical 
media or consumer products or IPR related arrests by East 
Java police and ConGen Surabaya business contacts still 
complain bitterly about the availability of cheap Chinese 
knockoff products available locally.  It is still too early 
to tell if the relatively new police chief is committed 
enough to IPR enforcement to maintain the positive momentum 
in Surabaya and to motivate East Java local police 
officials to take positive action on IPR piracy in their 
districts. 
 
PASCOE