Cablegate: Fact Finding Team Presents Report, President

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OO RUEHDT RUEHPB
DE RUEHJA #1910/01 3230211
ZNR UUUUU ZZH
O 190211Z NOV 09 ZDK
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3869
INFO RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE PRIORITY
RUEAWJB/DEPT OF JUSTICE WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RHMCSUU/FBI WASHINGTON DC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEHLMC/MILLENNIUM CHALLENGE CORP PRIORITY 0156

UNCLAS SECTION 01 OF 02 JAKARTA 001910

SENSITIVE
SIPDIS

DEPT FOR EAP, EAP/MTS, EAP/MLS, EAP/RSP, E, EEB, INL
DOJ FOR CRIM AAG SWARTZ, DOJ/OPDAT FOR BERMAN
NSC FOR D.WALTON; MCC FOR ISMAIL

E.O. 12958: N/A
TAGS: PGOV ECON KJUS KCOR ID
SUBJECT: FACT FINDING TEAM PRESENTS REPORT, PRESIDENT
PONDERS NEXT MOVE

REF: JAKARTA 1845

JAKARTA 00001910 001.2 OF 002

1. (SBU) SUMMARY: A presidentially-appointed fact finding
team called for total reform of Indonesia,s law enforcement
institutions it its final report released on November 17.
The ball is now in President Yudhoyono,s court. The
fact-finding team, commissioned to investigate allegations of
a conspiracy to implicate Corruption Eradication Commission
(KPK) leaders in criminal misconduct (see reftel), found that
the evidence against the KPK leaders is weak and recommends
halting the legal process against them. It also recommends
sanctioning the responsible officials and reforming the
police and prosecutor,s office. President Yudhoyono is
expected to publicly respond to the report on November 23
after also reviewing rebuttals from the police and
prosecutor,s office. END SUMMARY

RECOMMENDATIONS

2. (U) In its November 17 report, the presidential fact
finding team, known as the Team of 8, recommended dropping
the case against against KPK commissioners Chandra Hamzah and
Bibit Samad Riyanto. The report asserted that evidence
against the two commissioners was not strong enough to
continue a legal case against them. The report also stated
that the law enforcement agencies involved were
unprofessional, as evidently middlemen who sought personal
gain had manipulated the evidence. The report stated that
institutional reform which honored the independence of the
KPK was essential. It also advised the President to
establish a state commission to devise a comprehensive
program for national legal reform which would coordinate with
all legal institutions to uphold the rule of law, due
process, justice, and human rights.

THE FOLLOW THROUGH

3. (U) After receiving the report, the team held a press
conference with Coordinating Minister for Political, Legal
and Security Affairs Djoko Suyanto to discuss further action.
Suyanto announced that President Yudhoyono instructed the
team to publicly disseminate the report. He also said
Yudhoyono would give the police and prosecutors 2 to 3 days
to respond to the report. After receiving the report, SBY
will meet with cabinet officials to discuss further action
and announce his response on November 23.

WHAT NEXT?

4. (U) In surprise moves also on November 17, the AGO
announced that prosecutors were ready to file charges against
Chandra Hamzah in court and the INP reinstated Susno Duadji
to his position as chief of the INP,s Criminal Investigation
Division. Attorney General Hendarman Supandji stated that he
was still considering whether or not his office would file
the charges with the court to begin the trial process for
Bibit and Chandra. INP Chief Bambang Hendarso Danuri had
stated previously that Duadji,s was only suspended so that
his authority would not interfere in the Team of 8,s
investigation. (so why was this a surprise then? Were there
noises about reinstating him before?)

5. (SBU) All eyes are now on SBY to see what action he will
take. So far, he has predicated his action on a reluctance
to interfere in any legal process against the commissioners.
Chief editor of leading news magazine Tempo, Bambang
Harymurti, warned that allowing charges against Chandra and
Bibit to proceed to trial would extend public distrust of
Indonesian legal institutions to the courts. He said if the
case proceeds to trial, the public will have access to the
weak, circumstantial evidence against the KPK commissioners
and this will further discredit the Indonesian legal system.
This would distract the new administration,s attention from
many other pressing issues with obvious negative
consequences.

6. (U) Eric Sugandi, a local economist with Standard Charter
Bank, suggested that a lack of follow through by the SBY
administration could shake Indonesia,s economy. He
suggested that ignoring the Team of 8,s recommendations
could have a negative impact on the rupiah and investment

JAKARTA 00001910 002.2 OF 002

climate. On the contrary, if the KPK saga results in the
institutional reform which the team,s report suggests, it
could bring more foreign direct investment by promoting
stability and transparency.
HUME

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