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Viewing cable 07JAKARTA2715, INDONESIA PREPARES TO HOST UN CORRUPTION CONFERENCE - ASSET

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Reference ID Created Released Classification Origin
07JAKARTA2715 2007-09-26 06:30 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Jakarta
VZCZCXRO7830
RR RUEHCHI RUEHDT RUEHHM
DE RUEHJA #2715/01 2690630
ZNR UUUUU ZZH
R 260630Z SEP 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 6443
INFO RUEAWJB/DEPT OF JUSTICE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHKO/AMEMBASSY TOKYO 0856
RUEHBJ/AMEMBASSY BEIJING 4341
RUEHBY/AMEMBASSY CANBERRA 1252
RUEHUL/AMEMBASSY SEOUL 4220
RUEAIIA/CIA WASHDC
UNCLAS SECTION 01 OF 02 JAKARTA 002715 
 
SIPDIS 
 
STATE FOR U/S JEFFERY 
STATE FOR EAP/MTS, EEB/IFD/OIA, INL BOULDIN 
L/LEI FOR BUCHHOLZ 
DOJ FOR CRIM AAG SWARTZ 
DOJ/OIA FOR WARNER/ROBINSON 
DOJ/OPDAT FOR ALEXANDRE/LEHMANN/JOHNSON 
DOJ/AFMLS FOR SAMUEL 
MCC FOR AMBASSADOR DANILOVICH AND MORFORD 
DEPT PASS USTR FOR AMBASSADOR SCHWAB 
TREASURY FOR IA - BAUKOL 
USAID FOR ANE/AA WARD 
 
 
SENSITIVE 
SIPDIS 
 
AIDAC 
 
E.O. 12958: N/A 
TAGS: PGOV KMCA KCOR ECON KJUS ID
SUBJECT: INDONESIA PREPARES TO HOST UN CORRUPTION CONFERENCE - ASSET 
RECOVERY TOP PRIORITY 
 
JAKARTA 00002715  001.2 OF 002 
 
 
 
1. (SBU) SUMMARY: Asset recovery will be the GOI's top priority as 
host of the second Conference of State Parties (COSP) for the UN 
Convention Against Corruption (UNCAC), to be held in Bali on January 
28-February 1 2008.  A ministerial-level inter-agency national team 
led by the Ministry of Foreign Affairs is coordinating efforts for 
the UNCAC conference. The UN-World Stolen Asset Recovery (StAR) 
initiative was well received in Indonesia, although implementation 
questions remain. USG and the GOI are addressing concerns regarding 
Mutual Legal Assistance request mechanisms and witness cooperation. 
End Summary. 
 
UNCAC: Asset Recovery Listed as Top Priority 
-------------------------------------------- 
 
2. (U) In a September 24 meeting with the Ministry of Foreign 
Affairs (Deplu) Directorate for Treaties, Deputy Director Cahyo 
Muzhar said that the GOI's top priority for the January 2008 COSP is 
asset recovery, Chapter Five of UNCAC.  Muzhar noted other GOI COSP 
priorities as: supplementing existing mechanisms of mutual legal 
assistance treaties on asset recovery and establishing international 
standards and drafting an Indonesian law on the bribing of foreign 
officials as other GOI UNCAC priorities.  DOJ/OPDAT's Resident Legal 
Advisor (RLA) offered informal assistance, highlighting USG work 
regarding the Foreign Corrupt Practices Act.  Muzhar stated that a 
more complete agenda will be established after the final UNCAC 
working group concludes in early October. 
 
Ministerial Team Leads GOI Preparations 
--------------------------------------- 
 
3. (U) An inter-agency ministerial-level team is overseeing GOI 
preparations for the second COSP.  Participation includes: Deplu, 
Attorney General's Office, Indonesian National Police, Ministry of 
Law and Human Rights, KPK (Corruption Eradication Commission), and 
PPATK (financial intelligence unit).  The day-to-day working level 
contact is Deplu Director General Eddy Pramoto. 
 
4. (U) The Ministry of Law and Human Rights is currently drafting a 
series of anti-corruption amendments to implement UNCAC obligations 
within its domestic legislation.  With other key political issues on 
the legislative agenda, Parliament will not likely address this 
legislation before the January 2008 conference. 
 
UN-World Bank StAR Rising 
---------------------- 
 
5. (SBU) Moving on to related topics, Muzhar said that the UN-World 
Bank Stolen Asset Recovery (StAR) program was well received in 
Indonesia.  Muzhar was enthusiastic about StAR's balanced nature, 
placing responsibility on both the developed and developing 
countries.  However, he cautioned that StAR could be a paper tiger 
if not implemented properly.  Some press reports and members of 
Parliament have questioned the accuracy of UN and World Bank data 
related to the StAR initiative. There is a hope by many in Indonesia 
that the StAR program could provide a mechanism to recover the 
ill-gotten gains of President Suharto.  Arif Havas Oegroseno, 
Director of Political, Security and Territorial Treaties at Deplu, 
participated in StAr's launch on September 17.  In a September 25 
joint statement, President Yudhoyono and World Bank President 
Zoellick highlighted StAR's unique, innovative approach to 
strengthen GOI capacity on asset recovery.  Zoellick and Yudhoyono 
announced that a UN-World Bank joint mission will visit Indonesia to 
develop technical assistance programs related to the StAR 
initiative. 
 
 
JAKARTA 00002715  002.2 OF 002 
 
 
MLAT Discussion Positive, But Problems Exist 
-------------------------------------------- 
 
6. (SBU) Muzhar also discussed his perspective on the Mutual Legal 
Assistance Treaty (MLAT) negotiations that he participated in the 
week of September 17 in Washington.  The negotiations were positive, 
however the U.S. side noted two significant problems.  First, 
Indonesia's central authority for receiving MLAT requests, located 
in the Ministry of Law and Human Rights, needed the agreement of the 
Attorney General's Office and others to comply with incoming MLAT 
requests, potentially restricting Indonesia's ability to respond. 
Second, prospective witnesses may refuse to be summoned to provide 
testimony under Indonesia's new mutual legal assistance law.  Muzhar 
understood U.S. concerns, but noted that MLAT requests are not being 
rejected in practice due to the inter-agency approval process. 
Further, the police were effective at gaining witness cooperation in 
these MLAT matters. 
 
Comment: Right Direction, Slow Speed of Reforms 
--------------------------------------------- -- 
 
7. (SBU) Indonesia's hosting of the second COSP highlights the 
importance that Indonesia places on anti-corruption reform.  The GOI 
has ratified the UNCAC, conducted a UNCAC gap analysis between UNCAC 
obligations and domestic legislation, and has drafted further 
legislation related to UNCAC obligations.  However, the complex 
network of actors involved in anti-corruption reform in Indonesia - 
particularly the role of Parliament - will continue to make reform 
slow and, at times, non-linear. We will continue to discuss with the 
Indonesians their views on implementing UNCAC obligations.  End 
comment. 
 
HEFFERN