___________________________________________________________________________

2013/SOM1/CTTF/009 Agenda Item: 8

Counter-Terrorism Action Plan – Indonesia

Purpose: Information Submitted by: Indonesia

28th Counter Terrorism Task Force Meeting Jakarta, Indonesia

29-30 January 2013

1

2012 APEC COUNTER-TERRORISM ACTION PLAN

ECONOMY: INDONESIA CALENDAR YEAR: 2012 LAST UPDATED: 2011

Objective: Where appropriate, to self-assess progress against APEC Leaders’ and Ministers’ counter-terrorism commitments, and to identify capacity building needs to assist the CTTF to identify priority areas for future cooperation.

EXECUTIVE SUMMARY

1. Summary of main achievements/progress in implementing Leaders’ and Ministers’ commitments since last update.

1) Indonesia has conducted MANPADS vulnerability assessment since 2009 2) Issuance of series of the Director General of Civil Aviation regulations such as, Person and luggage security screening being transported by air , Aviation Security

Quality Control, Security Screening of Cargo and mail are transported by air, Person and luggage Security Screening to include the provisions relating to screening of hold baggage apart.

3) Improvement of human resources through training for Aviation Security Inspector, Quality Control of Aviation Security of Airports and Aircraft Operator, Aviation Security Facilities

4) Many of terrorist group operating have links to Jamaah Amshorut Tauhid (JAT) a group that replaced Jamaah Islamiyah (JI). In 2011 and 2012 several smaller group have emerged. Mostly composed of experienced/young amateurs who lack of skills of the previous generation that produced Bali Bombing.

5) Indonesia has shared exchange of information on counter terrorism through bilateral counter terrorism dialogue mechanism with APEC economies such as Australia, Canada, United states, Russia, as well extra regional cooperation with European Union, India, Pakistan, Sri Lanka.

6) In 2012 Indonesia has ratified one regional convention that of the ASEAN Convention on Counter Terrorism. 7) In the implementation of FATF Special Recommendation several action has been takes such as :

a. Indonesia has initially drafted new Law on Crime of Terrorist Financing (CTF), which covered all provisions recommended in MER and ICRG targeted review report.

b. On 23 March 2011, Indonesia had issued the Law Number 3 Year 2011 regarding Fund Transfers (the Funds Transfers Act). c. In NPOs sector, Indonesia has conducted several steps in relation to NPO handling.

8) There have been 7 conviction of terrorist financing in court.

9) The Indonesian national police have been promoting public participation in cyber security and misuse of internet for terrorist purpose by enhancing people’s awareness on terror threat and coordination among law enforcements agency on combating terrorism.

2. Summary of forward work program to implement Leaders’ and Ministers’ commitments.

1) Indonesia has initially drafted new Law on Crime of Terrorist Financing (CTF), which covered all provisions recommended in MER and ICRG targeted review report. 2) Continue to implement Law No. 6 Year 2006 concerning on Ratification of International Convention for the Suppression of the Financing of Terrorism, Enactment on

CFT Law, Continue implementation of UNSCR 1267.

2

3) Continue training on STR related to Terrorist Financing to Financial Institution , providing legal assistance and information exchange related to terrorist financing, audit and supervise Alternative Money Remittance and Continue to coordinate effort on preventing NPO to be misused for terrorist financing

4) Indonesia has commenced to amend the existing law on combating terrorist crime (Law no. 15/20013)

3. Summary of capacity building needs and opportunities that would accelerate/strengthen the implementation of APEC Leaders’ and Ministers’ commitments by your economy and in the region.

3

A. ENHANCING THE SECURE FLOW OF TRADE AND PEOPLE IN THE APEC REGION A.1 Protect Cargo: Contact Point: Name: Galih Elham Setiawan Title: Official of Diretorate General of Custom and Excise

Telephone Number: ____________ Fax Number: ___________ Email Address: eadish@hotmail.com LEADERS’ AND MINISTERS’ COMMITMENTS • Implement the APEC Framework for Secure Trade (2005). • Implement the common standards for electronic customs reporting developed by the World Customs Organization (WCO) that provide data to target high-risk shipments and

facilitate trade (2002). • Implement as practicable as possible a container security regime that facilitates the smooth flow of trade while enhancing the integrity of containers (2002). • Promote private-sector adoption of high standards of supply chain security, as developed by the private sector and law enforcement officials (2002). • Continue cooperation between APEC member economies to facilitate trade recovery after a terrorist attack (2006, 2007, 2011). • Work towards more consistent security measures that reduce transaction costs, and to enhance cooperation with the private sector (2007, 2011). • Complete the APEC Authorized Economic Operator (AEO) Best Practices Guidelines Document (2011) • Continue work on the Trade Recovery Program to work toward an operational system for ensuring trade recovery and resilience across the region in the wake of natural disasters

and other major disruptions, such as terrorist attacks. (2011) MEASURES UNDERTAKEN SINCE LAST UPDATE TO IMPLEMENT COMMITMENTS Summary of main achievements/progress in implementing Leader’s and Minister’s commitments since last update Promoting participation of other ASEAN members to ASW Expansion of INSW to cover other ports Establishment of regulation on importers registration to obtain broader networks and information of updated database of importers profiles in line with regulation of Ministry Finance. Implementation of PAU system at all international airport in Indonesia. Development of basic regulation on AEO Program in line with WCO SAFE Framework of Standards Installment and Utilization of Hi-Co Gamma Scan at Tanjung Priok port, Tanjung Mas port and Tanjung Perak port. 7. Undertaken 17th Joint Patrol Project from 19 July until 30 July 2011 with Malaysian Customs 8. Expansion of EDI Manifest coverage to other ports FURTHER MEASURES PLANNED TO IMPLEMENT COMMITMENTS (indicate timeframe) Promoting participation of other ASEAN members to ASW. 8. Expansion of INSW to cover other ports. 9. Broadening networks and sources of information for updated database and exporters profiles. 10. Undertaking Study of implementing PAU system at international ferry ports. 11. Expansion of CATS to other ports.

4

12. Development and expansion of online warehouse to reduce cost and time caused by manual process. 13. Development of Joint Operation with Malaysian Customs and other ASEAN member states 14. Expansion of EDI Manifest Coverage to other ports PLEASE DESCRIBE THE APEC CAPACITY BUILDING ACTIVITIES IN WHICH YOUR ECONOMY PARTICIPATED DURING THE LAST YEAR. WHAT BENEFITS DID YOUR ECONOMY DERIVE FROM THESE ACTIVITIES? WHAT FOLLOW-ON ACTIVITIES WOULD BE USEFUL? WHAT SPECIFIC CAPACITY BUILDING NEEDS DOES YOUR ECONOMY HAVE THAT HINDER YOUR ABILITY TO IMPLEMENT COMMITMENTS, AND WHAT CAPACITY BUILDING OPPORTUNITIES COULD BE PROVIDED THROUGH APEC TO ADDRESS THESE NEEDS? PLEASE BE AS SPECIFIC AS POSSIBLE REGARDING THE TYPES OF CAPACITY BUILDING ACTIVITIES THAT WOULD BENEFIT YOUR ECONOMY (E.G., SEMINARS, WORKSHOPS, INFORMATION SHARING, BEST PRACTICES, SPECIALIZED TRAINING, ETC.) WHAT KIND OF EXPERTISE AND/OR ASSISTANCE COULD YOUR ECONOMY PROVIDE TO OTHER APEC MEMBERS THAT COULD HELP ADDRESS THEIR CAPACITY BUILDING NEEDS? PLEASE BE AS SPECIFIC AS POSSIBLE REGARDING THE TYPES OF CAPACITY BUILDING ACTIVITIES THAT YOUR ECONOMY COULD PROVIDE (E.G., SEMINARS, WORKSHOPS, INFORMATION SHARING, BEST PRACTICES, SPECIALIZED TRAINING, ETC.)

5

A.2 Protect Port Facilities and Ships Engaged in International Voyages: Contact Point: Name: _____________________Title: _____________________________

Telephone Number: ____________ Fax Number: ___________ Email Address:_____________________ LEADERS’ AND MINISTERS’ COMMITMENTS • Review ship and port facility security plans; automatic identification systems (AIS) installed on certain ships (2004). • Support international efforts to fight piracy (2002, 2008). • Support the implementation of the International Ship and Port Facility Security Code (2004). • Cooperation between APEC member economies on training to enhance ship and port security in the region (2002). • Cooperate with the International Maritime Organisation on its efforts to undertake an analysis of small boats as potential threats to maritime security (2009). • Enhance ability to identify, assess, and share information on threats to transportation facilities, vehicles, people and cargo, to prevent and combat acts of unlawful interference

(2011)

MEASURES UNDERTAKEN SINCE LAST UPDATE TO IMPLEMENT COMMITMENTS FURTHER MEASURES PLANNED TO IMPLEMENT COMMITMENTS (indicate timeframe) PLEASE DESCRIBE THE APEC CAPACITY BUILDING ACTIVITIES IN WHICH YOUR ECONOMY PARTICIPATED DURING THE LAST YEAR. WHAT BENEFITS DID YOUR ECONOMY DERIVE FROM THESE ACTIVITIES? WHAT FOLLOW-ON ACTIVITIES WOULD BE USEFUL? WHAT SPECIFIC CAPACITY BUILDING NEEDS DOES YOUR ECONOMY HAVE THAT HINDER YOUR ABILITY TO IMPLEMENT COMMITMENTS, AND WHAT CAPACITY BUILDING OPPORTUNITIES COULD BE PROVIDED THROUGH APEC TO ADDRESS THESE NEEDS? PLEASE BE AS SPECIFIC AS POSSIBLE REGARDING THE TYPES OF CAPACITY BUILDING ACTIVITIES THAT WOULD BENEFIT YOUR ECONOMY (E.G., SEMINARS, WORKSHOPS, INFORMATION SHARING, BEST PRACTICES, SPECIALIZED TRAINING, ETC.) WHAT KIND OF EXPERTISE AND/OR ASSISTANCE COULD YOUR ECONOMY PROVIDE TO OTHER APEC MEMBERS THAT COULD HELP ADDRESS

6

THEIR CAPACITY BUILDING NEEDS? PLEASE BE AS SPECIFIC AS POSSIBLE REGARDING THE TYPES OF CAPACITY BUILDING ACTIVITIES THAT YOUR ECONOMY COULD PROVIDE (E.G., SEMINARS, WORKSHOPS, INFORMATION SHARING, BEST PRACTICES, SPECIALIZED TRAINING, ETC.)

7

A.3 Protect International Aviation: Contact Point: Name: Mr. Willy Jonathan Title: Official of The Directorate of Aviation Security

Telephone Number: ____________ Fax Number: ___________ Email Address:willy.sinaga@gmail.com

Emergency Aviation Security Point of Contact: Name: _____________________Title: _____________________________

Telephone Number: ____________ Fax Number: ___________ Email Address:_____________________ LEADERS’ AND MINISTERS’ COMMITMENTS

1. Introduce highly effective baggage screening procedures and equipment in all APEC international airports as soon as possible; and accelerate implementation of standards for reinforced flight deck doors for passenger aircraft wherever possible (2002).

2. Support International Civil Aviation Organization (ICAO) mandatory aviation security audits (2002, 2009). 3. Enhance air cargo security by promoting adoption of the guidelines developed by the ICAO (2002). 4. Examine emerging approaches to air cargo security; share information on efficient screening technologies and training; and harmonise aviation security measures (2009). 5. Adopt strict domestic export controls on Man-Portable Air Defense Systems (MANPADS); secure stockpiles; regulate production, transfer, and brokering; ban transfers to

non-state end-users; and exchange information in support of these efforts (2003). 6. APEC economies which did not do so before 2007 to conduct one MANPADS’ assessment of a major international airport using the MANPADS’ Vulnerability Assessment

(MVA) guide established by the ICAO or similar international guidelines (2005). 7. Work towards continuous improvement of aviation security oversight and quality control (2009). 8. Implement effective capacity building programs for air cargo and air traveller protection, which help develop institutions and mobilize expertise and resources efficiently

(2010). MEASURES UNDERTAKEN SINCE LAST UPDATE TO IMPLEMENT COMMITMENTS FURTHER MEASURES PLANNED TO IMPLEMENT COMMITMENTS (indicate timeframe)

1. Indonesia has conducted MANPADS vulnerability assessment since 2009 2. Issuance of the Director General of Civil Aviation Decree on Person and luggage security screening being transported by air in 2010(2010 3. Issuance of Director General of Civil Aviation Decree on Aviation Security Quality Control 4. Issuance of the Director General of Civil Aviation Decree on Security Screening of Cargo and mail are transported by air (2012) 5. Improvement of human resources through training for Aviation Security Inspector (2011-2012) 6. Improving Quality Control of Aviation Security of Airports and Aircraft Operator 7. Improvement of Aviation Security Facilities 8. Amandement of Director General Decree of Civil Aviation on Person and luggage Security Screening to include the provisions relating to screening of hold baggage apart

(2013)

8

9. Drafting of the Director General of Civil Aviation Decree on Minimum Airport Security Design(2013) 10. Enhancing coordination between Directorate General of Civil Aviation, aviation industries and other governments

11. PLEASE DESCRIBE THE APEC CAPACITY BUILDING ACTIVITIES IN WHICH YOUR ECONOMY PARTICIPATED DURING THE LAST YEAR.

WHAT BENEFITS DID YOUR ECONOMY DERIVE FROM THESE ACTIVITIES? WHAT FOLLOW-ON ACTIVITIES WOULD BE USEFUL? 1. Capacity Building on Canine Screening for aviation security 2. Workshop on Air Cargo Security

WHAT SPECIFIC CAPACITY BUILDING NEEDS DOES YOUR ECONOMY HAVE THAT HINDER YOUR ABILITY TO IMPLEMENT COMMITMENTS, AND WHAT CAPACITY BUILDING OPPORTUNITIES COULD BE PROVIDED THROUGH APEC TO ADDRESS THESE NEEDS? PLEASE BE AS SPECIFIC AS POSSIBLE REGARDING THE TYPES OF CAPACITY BUILDING ACTIVITIES THAT WOULD BENEFIT YOUR ECONOMY (E.G., SEMINARS, WORKSHOPS, INFORMATION SHARING, BEST PRACTICES, SPECIALIZED TRAINING, ETC.)

1. Workshop on Aviation and Airport Contingency Plan 2. Workshop on In-Flight act of unlawful interference (unruly Passenger) 3. Training on Human Factor 4. Training on Risk Assessment 5. Training on Security Profiling

WHAT KIND OF EXPERTISE AND/OR ASSISTANCE COULD YOUR ECONOMY PROVIDE TO OTHER APEC MEMBERS THAT COULD HELP ADDRESS THEIR CAPACITY BUILDING NEEDS? PLEASE BE AS SPECIFIC AS POSSIBLE REGARDING THE TYPES OF CAPACITY BUILDING ACTIVITIES THAT YOUR ECONOMY COULD PROVIDE (E.G., SEMINARS, WORKSHOPS, INFORMATION SHARING, BEST PRACTICES, SPECIALIZED TRAINING, ETC.)

9

A.4 Protect People in Transit: Contact Point: Name: _____________________Title: _____________________________

Telephone Number: ____________ Fax Number: ___________ Email Address:_____________________ LEADERS’ AND MINISTERS’ COMMITMENTS • Implement as expeditiously as possible an Advance Passenger Information system for the collection and transmission of advance passenger information (2002). • Consider joining the Regional Movement Alert System (RMAS) (2006). • Adopt and implement agreed standards for machine readable travel documents, and application of biometrics in entry and (where applicable) exit procedures and travel

documents consistent with ICAO and the International Standards Organization (2002). • Assure the highest possible integrity of all government officials who are involved in border operations (2002). • Develop a standardized strategic safety and security master plan for tourists, a crisis management model, and promote the development by industry of simple-to-use safety and

security measures for tourism businesses (2002). • Voluntarily provide information on lost and stolen travel documents to the existing database of the International Criminal and Police Organization (ICPO-Interpol) on a best

endeavours basis (2005). • Implement APEC Travel Facilitation Initiative to facilitate regional international travel, while ensuring the security of the overall travel system. (2011)

MEASURES UNDERTAKEN SINCE LAST UPDATE TO IMPLEMENT COMMITMENTS FURTHER MEASURES PLANNED TO IMPLEMENT COMMITMENTS (indicate timeframe) PLEASE DESCRIBE THE APEC CAPACITY BUILDING ACTIVITIES IN WHICH YOUR ECONOMY PARTICIPATED DURING THE LAST YEAR. WHAT BENEFITS DID YOUR ECONOMY DERIVE FROM THESE ACTIVITIES? WHAT FOLLOW-ON ACTIVITIES WOULD BE USEFUL? WHAT SPECIFIC CAPACITY BUILDING NEEDS DOES YOUR ECONOMY HAVE THAT HINDER YOUR ABILITY TO IMPLEMENT COMMITMENTS, AND WHAT CAPACITY BUILDING OPPORTUNITIES COULD BE PROVIDED THROUGH APEC TO ADDRESS THESE NEEDS? PLEASE BE AS SPECIFIC AS POSSIBLE REGARDING THE TYPES OF CAPACITY BUILDING ACTIVITIES THAT WOULD BENEFIT YOUR ECONOMY (E.G., SEMINARS, WORKSHOPS, INFORMATION SHARING, BEST PRACTICES, SPECIALIZED TRAINING, ETC.)

10

WHAT KIND OF EXPERTISE AND/OR ASSISTANCE COULD YOUR ECONOMY PROVIDE TO OTHER APEC MEMBERS THAT COULD HELP ADDRESS THEIR CAPACITY BUILDING NEEDS? PLEASE BE AS SPECIFIC AS POSSIBLE REGARDING THE TYPES OF CAPACITY BUILDING ACTIVITIES THAT YOUR ECONOMY COULD PROVIDE (E.G., SEMINARS, WORKSHOPS, INFORMATION SHARING, BEST PRACTICES, SPECIALIZED TRAINING, ETC.)

11

A.5 Combat Threats to Security: Contact Point: Name: Imam Santoso Title: Director of Regional and Multilateral Cooperation, Indonesia National Counter Terrorism Agency

Telephone Number: +62-21-31908784 Fax Number: +62-21-31908784 Email Address: bnpt.indonesia@gmail.com LEADERS’ AND MINISTERS’ COMMITMENTS • Review progress on commitments to dismantle trans-national terrorist groups (2003, 2005, 2006, 2007, 2008). • Eliminate the severe and growing danger posed by the proliferation of weapons of mass destruction and their means of delivery by strengthened non-proliferation regimes and

adopting and enforcing effective export controls (2003, 2004, 2005, 2006) as well as take appropriate individual and joint actions to protect legitimate financial and commercial system from abuse (2006).

• Ensure that any measures taken to combat terrorism comply with all relevant obligations under international law, in particular international human rights, refugee and humanitarian law (2005).

• Relevant economies to take steps towards the ratification and implementation of, or the commitment to ratify all basic universal antiterrorist conventions (2004, 2008). • Increase and better coordinate counter-terrorism activities, where appropriate, through effective collaboration, technical assistance and capacity building, and cooperation

between APEC’s Counter-Terrorism Task Force with relevant international, regional and functional organizations (2003) in accordance with the relevant APEC rules and practices.

• Relevant economies to implement the International Atomic Energy Agency Code of Conduct on the Safety and Security of Radioactive Sources as well as the Guidance on the Import and Export of Radioactive Sources (2005).

• Continue efforts and cooperation on food defense to mitigate the terrorist threat to the food supply following the voluntary APEC Food Defence Principles (2007). • Implement the APEC Consolidated Counter-Terrorism and Secure Trade Strategy to make regional commerce and travel more secure, efficient, and resilient (2011). MEASURES UNDERTAKEN SINCE LAST UPDATE TO IMPLEMENT COMMITMENTS

1. Radicalism, extremism and conflict situations in Indonesia can be traced back from insurgency of Darul Islam in 1950s, reemerging of radical movements in 1980s, communal conflicts in Ambon and Poso in 2000 as well as threats of Jemaah Islamiyah network afterwards.

2. During 2000-2009, Indonesia experienced series of bomb terror attacks. Among the attacks, those that involved with major bombs was started in 2002 by the first Bali bomb in 2002. It was followed by bomb attacks at J.W. Marriot Hotel bomb in Jakarta in 2003; Australian Embassy street bomb in 2004, the second Bali bomb in 2005; the simultaneous bombs at the J.W Marriot Hotel and Ritz-Carlton Hotel in Jakarta in 2009. Other incidents that using smaller bombs were, among others, the Philippines Embassy bomb in August 2000; GKPI bomb in Medan in May 2000; Christmas Eve Bomb in Pekan Baru in December 2000; Christmas bomb in Pematang Siantar in December 2000; Christmas Eve bomb in Bandung in December 2000; Christmas Eve in Batam in November 2002; Lippo Bank Robbery in Medan in May 2003; Preventing Bomb explosive in Palembang in July 2008,

3. After 2010, it was marked by series of terror activities and terrorist attacks like para military training run by terrorists in Aceh in February 2010; CIMB Niaga Bank Robbery in North Sumatera in August 2010, Arm attack in Hamparan Perak, North Sumatera in September 2010.

4. In 2011 Indonesia has uncovered series of terror activities. Those are, among others, books mail bomb in March 2011; terrorists training camp in Malino in May 2011; chemical poison to INP’s officers in June 2011; Bomb explosion inside of Umar bin Khattab Boarding School in Nusa Tenggara; and the recent sole suicide bomb attacks in Cirebon and Solo in 2012.

5. At this present time, there are around 130 terrorists serving their punishment in Indonesian prisons and 240 had been released as they have served their punishment. 6. Terrorist threat in Indonesia is real and imminent. While Indonesia has successfully destroying and decapitating terrorist cells, it still facing the new recruits of terrorists and

growing trend of radicalization. Physically, terrorist cells had been no longer the issue. The latest terrorist attacks in Cirebon and Solo shows that terrorist capabilities to

12

launch big attacks with big ammunition and explosive material has been heavily degraded. Bomb attacks committed by lone terrorists could only kill themselves. 7. Indonesia has strong commitment that in fighting terrorism it will always adhere to rules of law, democratic values, respect of human rights and fundamental freedom. 8. Indonesia has shared exchange of information on counter terrorism through bilateral counter terrorism dialogue mechanism with ARF Countries such as Australia, India,

Pakistan, Russia, Sri Lanka as well as European Union. Similarly, cooperation on capacity building are also established with united states, Singapore, Malaysia and other APEC economies.

9. Such cooperation has also conducted through regional and multilateral cooperation. Indonesia is an active member of APEC Counter Terrorism Task Force (elected as Chair for 2013-2014) and the Global Counter Terrorism Forum (co-Chairs with Australia), ASEM (Indonesia held ASEM CT Meeting in 2011), ASEAN, UN bodies, and other international organisations.

10. Despite the existing laws and regulation related to counter terrorism such as :

a. Law No. 15 of 2003 concerning Anti-Terrorism, currently being revisited for amendment; b. Law No. 15 of 2002 concerning the Crime of Money Laundering, amended by Law No. 25 of 2003; c. Law No. 8 of 2010 concerning the prevention and eradication of the crime of money laundering, Indonesia has ratified 7 (seven) out of 16 international instruments

on counterterrorism, namely: d. 1963 Convention on Offences and Certain Other Acts Committed on Board Aircraft, ratified by National Law no.2 year 1976; e. 1971 Convention for the Suppression of Unlawful Seizure of Aircraft, ratified by National Law no. 2 year 1976 f. 1971 Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation, ratified by National Law no. 2 year 1976; g. 1980 Convention on the Physical Protection of Nuclear Material, ratified by Presidential Decree no. 39 year 1986; h. International Convention for the Suppression of the Financing of Terrorism, adopted by the General Assembly of the United Nations on 9 December 1999, ratified

by National law no.5 year 2006; i. International Convention for the Suppression of Terrorist Bombings, adopted by the General Assembly of the United Nations on 15 December 1997, ratified by

National Law no. 6 year 2006; and j. Amendment to the Convention on the Physical Protection of Nuclear Material (CPPNM), 2005, ratified by Presidential Decree no. 46 year 2009. k. In 2012 Indonesia has ratified one regional convention that of the ASEAN Convention on Counter Terrorism.

FURTHER MEASURES PLANNED TO IMPLEMENT COMMITMENTS (indicate timeframe) PLEASE DESCRIBE THE APEC CAPACITY BUILDING ACTIVITIES IN WHICH YOUR ECONOMY PARTICIPATED DURING THE LAST YEAR. WHAT BENEFITS DID YOUR ECONOMY DERIVE FROM THESE ACTIVITIES? WHAT FOLLOW-ON ACTIVITIES WOULD BE USEFUL?

1. APEC Workshop on Major Event Security

WHAT SPECIFIC CAPACITY BUILDING NEEDS DOES YOUR ECONOMY HAVE THAT HINDER YOUR ABILITY TO IMPLEMENT COMMITMENTS, AND WHAT CAPACITY BUILDING OPPORTUNITIES COULD BE PROVIDED THROUGH APEC TO ADDRESS THESE NEEDS? PLEASE BE AS SPECIFIC AS POSSIBLE REGARDING THE TYPES OF CAPACITY BUILDING ACTIVITIES THAT WOULD BENEFIT YOUR ECONOMY (E.G., SEMINARS, WORKSHOPS,

13

INFORMATION SHARING, BEST PRACTICES, SPECIALIZED TRAINING, ETC.) Due to wide-ranging of activities that Indonesia needs in facing the challenge of terrorism, Indonesia welcomes all encouragements, acknowledgement, support, cooperation lend by any friendly country. Cooperation can be explored in areas such as capacity building, empowering Counter Terrorism Task Forces, deradicalization program, prison management and facilities, court security, training for trainers, threat analysis center, crisis management, cyber security, terror financing, criminal justice system, training for judge and prosecutors and prison officials, join exercise on the involvement military in counter terrorism operation. WHAT KIND OF EXPERTISE AND/OR ASSISTANCE COULD YOUR ECONOMY PROVIDE TO OTHER APEC MEMBERS THAT COULD HELP ADDRESS THEIR CAPACITY BUILDING NEEDS? PLEASE BE AS SPECIFIC AS POSSIBLE REGARDING THE TYPES OF CAPACITY BUILDING ACTIVITIES THAT YOUR ECONOMY COULD PROVIDE (E.G., SEMINARS, WORKSHOPS, INFORMATION SHARING, BEST PRACTICES, SPECIALIZED TRAINING, ETC.)

14

B. HALTING TERRORIST FINANCING: Contact Point: Name: Syahril Ramadhan Title: Head of International Cooperation Group, PPATK Telephone Number: 62-21-3856809 Fax Number: 62-21-3856809 Email Address: syahril.ramadhan@ppatk.go.id LEADERS’ AND MINISTERS’ COMMITMENTS • Cut off terrorists’ access to the international financial and commercial system, including by implementing standards and agreements on combating terrorist financing and money

laundering (2002, 2004, 2006, 2007, 2008, 2009). • Enhance law enforcement and regulatory capabilities by establishing or identifying a financial intelligence unit (FIU) in each member economy, and enhancing information

sharing with other FIUs (2002). • Relevant economies to implement UN and other international instruments (2002). • Implement, where applicable, the FATF’s Special Recommendations on terrorist financing, including those relating to non-profit organizations, alternative remittance systems

and illicit cash couriers (2002, 2008). MEASURES UNDERTAKEN SINCE LAST UPDATE TO IMPLEMENT COMMITMENTS

A. Update on implementation of FATF SR I (International instruments)

Indonesia has already ratified UNTOC (Palermo Convention) by the Law No. 5 Year 2009 regarding Ratification of United Nations Convention against Trans-national Crime on 12 January 2009 and starting enacted on that date. In accordance the ratifying of UN Palermo Convention with the Law No. 5 Year 2009 concerning on Ratification of United Nations Convention against Transnational Organized Crime, Indonesia is considering to take adjustment measures to its legislations, in particular to some laws that their substances related to the UN Convention.

Based on the new AML Law, the materials amended the criminalization of money laundering, covering: • Expanding the element of the crime of money laundering to be in line with Article 6 paragraph 1 of the UNTOC and Article 3 paragraph 1 letter b of Vienna Convention

1988. • Extension scope of coverage of assets and proceeds, which include all movable or immovable objects, either tangible or intangible acquired either directly or indirectly. • Increasing the available maximum custodial sentences (imprisonment and fine) of money laundering offence to 20 (twenty) years, which is comparable with other

serious economic crimes.

The New AML Law has accommodated the authority of PPATK to conduct transaction postponement/delay and freezing on assets suspected to be derived from crime, which is categorized as suspicious transaction. The assets owned by the individuals and entities listed in UNSCR 1267 and 1373 are equivalent with a suspicious transaction above-mentioned. Therefore, PPATK will have authorities to freeze assets or suspend transactions related to the UN List.

B. Update on CFT Bill - Implementation of FATF SR II & III (Terrorist financing offence, Targeted financial sanctions related to terrorism & terrorist financing )

Indonesia has initially drafted new Law on Crime of Terrorist Financing (CTF), which covered all provisions recommended in MER and ICRG targeted review report.

Furthermore, the Bill concerning Prevention and Eradication on Crime of Terrorist Financing sent to the Parliament is regulating comprehensively concerning as follows: • Criminalization of terrorist financing act;

15

• Other Crimes related to the Criminal Act of Terrorist Financing; • Measures of Prevention on Terrorist Financing; • Freezing; • List Suspected Terrorist and Terrorist Organization issued by the Government, which is contain provision related with:

o Listing procedure to list of suspected terrorist or terrorist organization publicized by Government. o Freezing of asset and fund owned by individual or entity listed in list of suspected terrorist or terrorist organization. o Objection to freezing; o Procedure of de-listing for individual or entity identity from list of suspected terrorist or terrorist organization o Exception of Freezing o Investigation, Prosecution and Court Examination; o Court examination through audio visual communication devices for witnesses; and o Collaboration in the Prevention and Eradication of Criminal Act of Terrorist Financing

The CFT Bill will serve as legal basis in governing comprehensive mechanism to implement SR III. Some major elements of SR III have been reviewed and refined in the draft of CFT Bill, among other things are:

a. Procedure for Inclusion in the List of Suspected Terrorist or Terrorist Organization Issued by the Government. b. Freezing of Asset and Fund of Person or Corporation Listed in the List of Suspected Terrorist or Terrorist Organization Issued by the Government. c. Objection to Freezing. d. Delisting of Identity of a Person or Corporation from the List of Suspected Terrorist or Terrorist Organization Issued by the Government. e. Exception to Freezing.

Furthermore, by investigation process, up to now there have been around 14 accounts of 10 suspected persons (not related directly to terrorist act, but mostly to terrorist individual or terrorist organisation), has been freeze using Article 29 Law of Terrorist Act with the total amount Rp. 145 million (around US$ 14.000). This June Police confiscate the assets of suspected terrorist group in the field of Rp. 8 billion (USD 800.000) worth of four houses, one shop, a few cars and motorcycles, as well as fresh funds, all of which are raised through the internet.

Indonesia has already implemented a screening procedure for evaluating foreign list based requests. For example, Indonesia recently received information from foreign counterpart the account of some entities/persons whose name is the same with UNSCR 1267consolidated list. However, after some clarification, it can be concluded that the person/entity is not the person/entities targeted in UNSCR 1267consolidated list (although the name is almost the same with UNSCR 1267consolidated list).

In term of UNSCR 1373, although there is no formal mechanism of UNSCR 1373 list, the result of terrorist trial is available for all financial institutions. Financial institutions send STR in regard to the result of court trial. As mentioned in our draft law, Indonesia would use judicial approach for listing terrorist under UNSCR 1373. But for the suspected terrorist which is in the process of investigation, the name of suspected terrorist cannot be publicized as it will disrupt the investigation process. Furthermore, there have been 7 conviction of terrorist financing in court (using Article 11 of Law on Terrorist Act Crime) who have been convicted in court that shows: • the widest range of assets (not only money but also asset such as weapons, etc); • direct and indirect collection and provision of assets; • funding to individual terrorists and terrorist organization, not only linked to a specific terrorist act; • provision of assets to terrorist organisations; and • ability for the knowledge element should be able to be proven by objective factual circumstances.

16

C. Update on implementation of FATF SR IV (Reporting of suspicious transactions)

The new AML Law has already accommodated obligation to monitor unusual transactions and to report suspicious transaction in its elucidation of Article 23 par. (1) letter a. (for further detail please see R.11 below). In order to support effective implementation of the STR obligation across all sectors, PPATK has launched the Manual Book of AML/CFT Compliance Program for Indonesian Banks and Securities on 9 December 2010

The New AML Law in Article 2 para. (2) has accommodated to ensure there is a direct obligation to report suspicious transactions related to both legitimate and illegitimate funds linked to or to be used for terrorism, terrorist acts, terrorist organizations or those who finance terrorism.

PPATK has already enacted a provision in respond to Counter Financing Terrorism regime, namely Head of PPATK’s Decision No.: Kep. 13/PPATK/02/08 dated on 4 February 2008 concerning the Guideline on Identification of Suspicious Financial Transaction related to Terrorism Financing for Financial Service Providers (Guideline V).

D. Update on implementation of FATF SR V (Mutual legal assistance)

Under Indonesian Law Number 1 Year 2006 on Mutual Legal Assistance in Criminal Matters Article 7 stated that “The request for assistance may be refused if the request for assistance relates to the investigation, prosecution, and examination before the court or punishment of a person for a crime that if said crime committed within the territory of the Republic of Indonesia is not a crime”. Explanation: The word “may be refused” in this article means that the absence of dual criminality is one of discretionary ground for refusal. Whereas Article 6 Law Number 1 Year 2006 regulated mandatory ground for refusal of MLA.

Centralization of statistic management on MLA cooperation: Ministry of Law and Human Rights as the Central Authority in handling MLA also responsible to manage the statistic of MLA request and establishing inventory and reconciliation of data regarding MLA request from and to Indonesia.

International Division of Attorney General’s Office that has trained human resources who can handle MLA cooperation and Extradition:

o Empowering human resources from AGO international division. o Providing scholarship and improving expertise of human resources and international division of AGO through training-based programs in establishing and

receiving MLA. o Improving competence and capabilities of central authority and law enforcement agencies in handling MLA

E. Update on the implementaion of FATF SR VI (Money or value transfer services)

On 23 March 2011, Indonesia had issued the Law Number 3 Year 2011 regarding Fund Transfers (the Funds Transfers Act). The Fund Transfer Act clearly stipulates, among others, that: • A non-Bank enterprise conducting funds transfers activities must be incorporated as an Indonesian legal entity and obtain a licence from Bank Indonesia (article 69);

thus individuals are effectively prohibited from conducting fund transfer activities. • Any person (individuals or non-Bank enterprise) conducting Funds Transfer activities without a licence will be subject to criminal sanction (article 79). • Oversight of the provision of Funds Transfer by a Provider shall be conducted by Bank Indonesia (Article 72).

Law No. 3 of 2011 concerning Funds Transfers covers banks and any entity conducting funds transfer activity. Funds transfer providers must be incorporated as an

17

Indonesian legal entity and obtain a licence from Bank Indonesia. Any person conducting funds transfers activities without a licence shall be sentenced to imprisonment not exceeding 3 (three) years and a fine not exceeding Rp. 3.000.000.000 (three billion rupiahs). Further, the Funds Transfer Act also requires funds transfers operator to fulfill obligations as stipulated under the Act number 8 year 2010 regarding Prevention and Eradication of the Crime of Money Laundering (AML Act). Therefore, all funds transfer operators, including remittance agents, are effectively has obligations under the Act to fulfill AML/CFT regulations.

F. Update on Implementation of FATF SR VII (Wire transfers)

The Funds Transfer Act clearly stipulate that funds transfer operators, including Banks and non-Bank enterprise, must require originator to provide valid identification prior to conduct the funds transfer (Article 8 paragraph 1 letter f). Funds transfer operators may only conduct the funds transfer if the originator successfully provides identification. Further, on Article 9 paragraph 2 of the Funds Transfer Act, it is stipulated that the Funds Transfer Operator is entitled to refuse conducting funds transfer if the Originator fails to provide required information, including valid identification. Based on the Funds Transfers Act, Bank Indonesia is the regulator and overseer of the funds transfer activities (Article 72-75). Further, on the Bank Indonesia Regulation No. 11/28/PBI/2009 on Implementation of AML/CFT Program for Commercial Banks (the BI Regulation on AML/CFT for Commercial Banks) and Bank Indonesia Regulation No. 14/3 / PBI / 2012, it is stipulated that banks and payment system operators must require full originator information accompanying wire transfer, whether such banks or operators act as intermediary or beneficiary of a wire transfer.

G. Update on Implementation of FATF SR IX (Cash couriers)

Indonesia has made amendments to its anti-money laundering provision. One of the amended-materials is the provision on cross border cash carrying (CBCC), which is also cover bearer negotiable instruments (BNI) to be reported. The provision is giving authority to the Directorate General of Customs and Excise to control Cross Border Cash Carrying and Bearer Negotiable Instruments as well as impose administrative sanction against the violation of Cross Border Cash Carrying and Bearer Negotiable Instruments either incoming or outgoing of the Indonesian Customs Territory. Consequently, the DGCE has modified customs declaration (BC 2.2) to adopt BNI under DGCE Regulation No. P-41/BC/2010 date on 29 October 2010 juncto DGCE Regulation P-22/BC/2009. Further provisions concerning the notification procedures of carrying cash currency and/or other negotiable instruments, imposition of administrative sanctions and depositing into the State Treasury shall be stipulated in a Government Regulation. Effectiveness of CBCC report implementation The procurement and setting-up of PAU (Passenger Analyzing Unit)

- Indonesia has established PAU for intelligence analysis activity focusing on targeting illicit drugs couriers, but in the future can also be used to illicit cash couriers targeting.

- Regulation about Sanction if fail to report or giving false information on cross border cash carrying (CBCC) - Indonesia has accommodated simple and clear mechanism to handle CBCC violation and BNI under Law No. 8 Year 2010. - DGCE, PPATK and together with other government agencies simultaneously performing discussion of implementation guidelines of Law No. 8 Year 2010

regarding CBCC. Strengthening the enforcement of AML Law provision and Regulation

Directorate General of Custom and Excise No. No.01/BC/ 2005 in collaboration with PPATK, DGCE conducted Socialization to officers of customs and excise, administrative staff at the airport and seaport and law enforcement officers (Police, prosecutor), about the rules and procedures of cash carrying into / from the territory of the Republic of Indonesia. In addition, PPATK and DGCE have made publication to public (i.e. banner, flyer, pamphlet), especially people who want to make cross-border trip, about obligation or provision and procedures to report cash carrying into / from the territory of the Republic of Indonesia. Publication will be placed in airport and seaport.

18

FURTHER MEASURES PLANNED TO IMPLEMENT COMMITMENTS (indicate timeframe) 1. Continue to implement Law No. 6 Year 2006 concerning on Ratification of International Convention for the Suppression of the Financing of Terrorism, 1999 2. Enactment on CFT Law 3. Enactment on Government Regulation of the implementation of Law No. 8 Year 2010 to the Director General of Customs and Excise. 4. Continue implementation of UNSCR 1267. 5. Continue training on STR related to Terrorist Financing to Financial Institution 6. Continue on providing legal assistance and information exchange related to terrorist financing 7. Continue audit and supervise Alternative Money Remittance 8. Continue to coordinate effort on preventing NPO to be misused for terrorist financing 9. Sign project charter with Fincen (US FIU) on coordinating effort to analyse and investigate cross border cash carrying (CBCC) PLEASE DESCRIBE THE APEC CAPACITY BUILDING ACTIVITIES IN WHICH YOUR ECONOMY PARTICIPATED DURING THE LAST YEAR. WHAT BENEFITS DID YOUR ECONOMY DERIVE FROM THESE ACTIVITIES? WHAT FOLLOW-ON ACTIVITIES WOULD BE USEFUL? Resource Person on APEC workshop on Terrorist Financing in Malaysia on January 2012 WHAT SPECIFIC CAPACITY BUILDING NEEDS DOES YOUR ECONOMY HAVE THAT HINDER YOUR ABILITY TO IMPLEMENT COMMITMENTS, AND WHAT CAPACITY BUILDING OPPORTUNITIES COULD BE PROVIDED THROUGH APEC TO ADDRESS THESE NEEDS? PLEASE BE AS SPECIFIC AS POSSIBLE REGARDING THE TYPES OF CAPACITY BUILDING ACTIVITIES THAT WOULD BENEFIT YOUR ECONOMY (E.G., SEMINARS, WORKSHOPS, INFORMATION SHARING, BEST PRACTICES, SPECIALIZED TRAINING, ETC.) WHAT KIND OF EXPERTISE AND/OR ASSISTANCE COULD YOUR ECONOMY PROVIDE TO OTHER APEC MEMBERS THAT COULD HELP ADDRESS THEIR CAPACITY BUILDING NEEDS? PLEASE BE AS SPECIFIC AS POSSIBLE REGARDING THE TYPES OF CAPACITY BUILDING ACTIVITIES THAT YOUR ECONOMY COULD PROVIDE (E.G., SEMINARS, WORKSHOPS, INFORMATION SHARING, BEST PRACTICES, SPECIALIZED TRAINING, ETC.) Provide Training and Information Sharing to Other FIU

19

C. PROMOTING CYBER SECURITY: Contact Point: Name: Winston Tommy Watuliu Title: Head of Cyber Crime, Indonesian National Police

Telephone Number: +62-21-7258775 Fax Number: +62-21-7258775 Email Address: u2watuliu@polri.go.id LEADERS’ AND MINISTERS’ COMMITMENTS • Countering terrorism by implementing and enhancing critical information infrastructure protection and cyber security to ensure a trusted, secure and sustainable online

environment (2002). • Enhance mutual cooperation on countering malicious online activities and engage in efforts to increase cybersecurity awareness (2010). MEASURES UNDERTAKEN SINCE LAST UPDATE TO IMPLEMENT COMMITMENTS

1. It is noted also that there are websites run by Indonesian that, by taking advantage of democratic environment and advance of technology, they are continuously disseminating incitement, radical ideas and terrorist propaganda. Among those websites are ar-rahmah.com; anshar.com, ghur4ba.blockspot.com and tauhid-jihad.blogspot.com.

2. The Indonesian national police has been promoting public participation by enhancing its roles as enhancing people’s awareness on terror threat, coordination among law enforcements agency on combating terrorism.

3. developing better protection on digital information infrastructure and capacity building program such as : 4. Cooperation with related stake holder, i.e. Ministry of Communication and Information, Association of Indonesian Internet Service Provider (APJJI), PT Microsoft

Indonesia, Webhosting companies, experts on information technology, Indonesia National Counter Terrorism Agency, Jakarta Centre for Law Enforcement Cooperation. 5. International cooperation on Capacity Building in protecting digital information infrastructure through bilateral, regional and international cooperation such as United

States, Australia, UNODC, ILEA 6. International Cooperation on capacity building on cyber security also being conducted ASEAN Cooperation mechanism, including with ASEAN Dialogue Partners.

FURTHER MEASURES PLANNED TO IMPLEMENT COMMITMENTS (indicate timeframe) PLEASE DESCRIBE THE APEC CAPACITY BUILDING ACTIVITIES IN WHICH YOUR ECONOMY PARTICIPATED DURING THE LAST YEAR. WHAT BENEFITS DID YOUR ECONOMY DERIVE FROM THESE ACTIVITIES? WHAT FOLLOW-ON ACTIVITIES WOULD BE USEFUL? WHAT SPECIFIC CAPACITY BUILDING NEEDS DOES YOUR ECONOMY HAVE THAT HINDER YOUR ABILITY TO IMPLEMENT COMMITMENTS, AND

20

WHAT CAPACITY BUILDING OPPORTUNITIES COULD BE PROVIDED THROUGH APEC TO ADDRESS THESE NEEDS? PLEASE BE AS SPECIFIC AS POSSIBLE REGARDING THE TYPES OF CAPACITY BUILDING ACTIVITIES THAT WOULD BENEFIT YOUR ECONOMY (E.G., SEMINARS, WORKSHOPS, INFORMATION SHARING, BEST PRACTICES, SPECIALIZED TRAINING, ETC.) WHAT KIND OF EXPERTISE AND/OR ASSISTANCE COULD YOUR ECONOMY PROVIDE TO OTHER APEC MEMBERS THAT COULD HELP ADDRESS THEIR CAPACITY BUILDING NEEDS? PLEASE BE AS SPECIFIC AS POSSIBLE REGARDING THE TYPES OF CAPACITY BUILDING ACTIVITIES THAT YOUR ECONOMY COULD PROVIDE (E.G., SEMINARS, WORKSHOPS, INFORMATION SHARING, BEST PRACTICES, SPECIALIZED TRAINING, ETC.)

21

POSSIBLE ASSISTANCE AND EXPERTISE TO OFFER Contact Point for Assistance and Expertise not included above: Name: _____________________Title: _____________________________ Telephone Number: ____________ Fax Number: ___________ Email Address: __________________________ Economies with particular expertise and resources to offer could indicate this here and/or refer members to relevant websites.