Source: 2000
Released by the Bureau for International Narcotics and Law Enforcement Affairs
Indonesia is not a major drug producing or drug-transit country. However, Indonesia has a long way to go in mounting an effective and long-term strategy against drug traffickers and crime in general. Although there have been positive steps, the Indonesian National Police (INP) lack appropriate resources, training and expertise to mount complex narcotic investigations. The INP and its narcotic investigative drug unit, NARKOBA, continue to rely heavily on the U.S. Department of Justice's Drug Enforcement Administration's (DEA) expertise and training to address both domestic and U.S. drug investigations. Indonesia is a party to the 1988 UN Drug Convention and has passed new antinarcotics laws that conform to international norms established by the UN convention. However, implementing these laws often proved to be difficult and police at times have been arbitrary in enforcing them.
Ecstasy is a major problem, especially in urban areas. Methamphetamine was introduced in Jakarta in 1998 and many of the pills now sold as ecstasy in Jakarta nightclubs are actually methamphetamine. Marijuana is produced in remote areas of Northern Sumatra, primarily for domestic consumption. Local media has, on occasion, reported that the GAM rebel group in Aceh province is involved in marijuana production and trafficking. DEA has not received any solid evidence independently or from the INP to support these assertions. There has been an increase in clandestine methamphetamine and ecstasy laboratories. Narcotics, particularly methamphetamines, have gained popularity, especially among the younger generation of Indonesians.
Drug trafficking organizations exploit Indonesia's large and diverse geographical makeup, porous borders and lack of stringent customs control. These organizations often take advantage of Indonesia's lack of sophisticated law enforcement techniques by shipping narcotics through Jakarta to markets in the U.S., Europe, South America, Africa, and Australia.
In addition to the existence of domestic networks, Southeast and Southwest Asian drug organizations remain active in Indonesia. In the year 2000, DEA has observed an increase of Southwest Asian heroin being smuggled via commercial airlines from Pakistan (Islamabad, Lahore, and Karachi) to Jakarta. Routes from Pakistan that transit Bangkok or Singapore to Jakarta have become increasingly popular. Most of these groups are West African (Nigerian) organizations utilizing Indonesian and Thai female couriers. These groups obtain their heroin in Bangkok and engage couriers to carry it via commercial air into Soekarno-Hatta Airport in Jakarta. From Jakarta, the heroin is distributed to the United States, Australia and Western Europe, with a smaller amount sold on the local market. Drug traffickers also use Indonesia as a transit point for shipping cocaine to Europe, Asia and the U.S., although there is no evidence that this has a significant effect on the U.S. Structured drug organizations, such as the West African heroin Number 4 trafficking group, are operating in Indonesia. The DEA is working closely with INP Narkoba officials on enforcement efforts to counter this threat. At times Narkoba's efforts have been unintentionally undermined by competing elements of the INP's Criminal Investigative Division (CID). Both offices conduct narcotic investigations, however CID does not concentrate exclusively on this issue.
The INP is attempting to reduce the spread of narcotics into the country through various investigative elements. These investigations increasingly result in fatal shootings of narcotic suspects. West Africans, particularly Nigerians, are often at the center of these investigations and are victims in the shootings. In March 2000, the DEA Singapore Office, INP, and the DEA offices in Kuala Lumpur and New York arrested a Nigerian drug trafficker who was shipping heroin to New York City. This Jakarta-based trafficker was arrested in Kuala Lumpur, by DEA and Malaysian authorities with one (1) kilogram of heroin.
Policy Initiatives. In 1997, the Indonesian Parliament approved legislation outlawing psychotropic drugs including ecstasy, and provided for penalties of up to seven years imprisonment for marijuana possession and a maximum of 20 years in jail for marijuana trafficking. It also ratified Indonesia's participation in the 1988 UN drug convention, and passed new antidrug legislation which replaced the previous 1976 law. The 1997 legislation conforms to the criteria set forth in the 1988 UN convention. Since 1997, no new laws concerning narcotics enforcement have been passed.
Accomplishments/Law Enforcement Efforts. The DEA Singapore Office continues its close relationship with the INP Narkoba unit through training, equipment and operational expertise. The INP Narkoba unit is working to develop DEA methods, and DEA continues to work very closely with the INP Narkoba unit to identify potential production and cultivation areas. Eradication of the sale, transport and financing of narcotics remains a primary objective of antinarcotics activities by the authorities, particularly within the domestic markets. Arrests of narcotics traffickers are reported frequently in Jakarta and the Kuta beach area of Bali. Arrests of foreigners, particularly Nigerians, in connection with narcotics use, possession and trafficking are frequently noted in the Indonesian media.
In 2000 Indonesia has made great progress in precursor chemical control as compared to past years. For example, DEA has been able to assist INP/Narkoba in establishing a Precursor Chemical Control Unit. This has resulted in the first ever precursor chemical seizure in a joint investigation between DEA, INP, Indonesian Customs, and the Ministry of Health. In June 2000, approximately 4,400 kilograms of Acetic Anhydride (AA) were seized at the Port of Jakarta. The Indonesian company that was importing the AA from the U.S. did not have the necessary permits and licenses to import AA, which is a precursor chemical used to make heroin. The AA was seized and the company was not allowed to import any more precursor chemicals into Indonesia.
Corruption. Corruption among police and customs personnel persists in Indonesia, with continuing reports from street sources that police personnel often assist drug traffickers or are themselves involved in selling narcotics, and that persons arrested for narcotics trafficking can easily bribe police to free them. Given the low salaries of these officers (USD 40 to 60 per month), they face great temptation to accept bribes from drug traffickers. It should be noted, however, that none of DEA's investigations have ever been compromised by Indonesian narcotics officers.
Agreements and treaties. Indonesia is a party to the 1988 UN Drug Convention. While there is no formal extradition relationship between the United States and Indonesia, in practice U.S. and Indonesian authorities have cooperated effectively in resolving extraditions for criminal cases. Indonesia signed the UN Convention Against Transnational Organized Crime and its Protocols in December, 2000.
Cultivation and production. As their limited resources permit, the INP, in particular, the narcotics unit, and Indonesian customs continue their efforts to combat narcotics smuggling. As in previous years, the illicit cultivation of marijuana in Aceh province was the target of periodic eradication campaigns. The INP is strong in its enforcement efforts aimed at eradicating drug trafficking in Jakarta and other urban areas. However, they face more difficulties in outlying rural areas. At this point there is no measurable evidence that their counternarcotics efforts have had any significant impact on drug usage.
Drug Flow/Transit. Indonesia continues to be used as a transit point for Southeast and Southwest Asian heroin and other drugs, including transshipment to the United States in small quantities, Australia and Europe. Because of Indonesia's porous borders, drug traffickers find this an attractive area. Customs and immigration officials working outside of the capitol are easier to bribe and less motivated in their work. Drug traffickers can thus move their products into and out of Indonesia relatively easily.
U.S. Policy Initiatives. The United States supports adoption of new legislation for money laundering and asset forfeiture. The U.S. Embassy in Jakarta and the DEA Attache in Singapore coordinate cooperation with the GOI on narcotics matters. Indonesian authorities fully support the DEA in all narcotic matters. The DEA will continue to assist the INP to increase its ability to handle bilateral investigations against major trafficking groups. GOI resources will have a direct impact in this area. DEA will provide training to the INP Narkoba unit in how to better utilize their drug laws. This will enhance their counter drug efforts and provide a more viable platform to work cases with DEA and other U.S. law enforcement agencies. Over the last year, 10 INP Narkoba officers have attended training at the International Law Enforcement Academy (ILEA) in Bangkok. DEA will request and continue to provide training for the INP Narkoba unit. This will include two special training sessions from DEA's Office of International Training for a two-week basic drug investigation course in Jakarta and a second two-week course in Denpasar, Bali.
Bilateral Cooperation. Cooperation has been excellent between the RSO's office and the INP, but especially so between the INP's Narkoba unit and the DEA. Training programs mentioned above were provided to the INP during 2000.
DEA plans to recommend candidates for the ILEA course in 2001 and continue training of INP Narkoba officers in Indonesia. U.S. Customs continues to work with Indonesian customs to enhance and upgrade the narcotics detection/canine interdiction program at Soekarno-Hatta international airport as a result of DEA training. Police narcotics officers and customs officials greatly improved their operating procedures, i.e., surveillance and contraband search techniques, intelligence gathering, interview techniques, report writing, arrest procedures, and execution of controlled deliveries. DEA has helped the INP narcotics unit to establish a drug intelligence database to track all drug arrests throughout Indonesia. During 2000, the Government of Indonesia continued to cooperate with the U.S. Drug Enforcement Administration on narcotics cases. The DEA encourages regional cooperation against West African heroin organizations. INL and the U.S. Treasury Department have identified funding for continued financial crime investigation training and assistance in drafting money-laundering legislation.
The Road Ahead. The United States will continue to work closely with the INP and Indonesian Customs to enhance their abilities to combat narcotics trafficking and abuse through training opportunities in Indonesia and at ILEA Bangkok. Close cooperation on investigations between the Indonesian Government and DEA will continue.
Indonesia's strategic geographic location, strict bank secrecy, and inadequate legislation against money laundering and corruption have made its economy vulnerable to money laundering. Indonesia is not an offshore center. Most money laundering in Indonesia is believed to be related to domestic narcotics trafficking, fraud, and corruption. In recent years, several Indonesian banks have become the targets of fraud schemes and corruption that may have been prevented if adequate safeguards had been in place, indicating that the country's financial regulatory system also is inadequate.
In July 2000, Indonesian police officials at a cyber crime conference described recent cases that have involved credit card fraud, computer hacking, and other financial crimes. Despite their ongoing efforts, the Indonesian National Police still lack the appropriate resources, training, and expertise to mount complex investigations. In August 2000, the US Government provided anti-money laundering training to representatives of Indonesian law enforcement.
Draft legislation that is the subject of discussion between the administration and parliament, the Eradication of Criminal Acts of Money Laundering (ECAML), would criminalize money laundering and establish suspicious transactions reporting for financial institutions, currency transactions reporting, and cross-border currency reporting. ECAML also would establish the Commission for the Eradication of Criminal Acts of Money Laundering (CECAML). CECAML would receive and analyze currency and suspicious transactions reports, and offer assistance in criminal money laundering investigations.
Indonesia is a member of Asia Pacific Economic Cooperation (APEC), and the Asia/Pacific Group on Money Laundering (APG). Indonesia is a party to the 1988 UN Drug Convention, and in December 2000, signed the UN Convention against Transnational Organized Crime.
The lack of an adequate anti-money laundering and enforcement regime will continue to put Indonesia's financial system at risk to financial crime. Indonesia should pass comprehensive anti-money laundering legislation and enact bank supervisory practices that are consistent with accepted international standards. In addition, the GOI should investigate the use of non-bank facilities that are frequently used to launder money.