We present a novel named entity recognition approach for the Indonesian language. We call the new method InNER for Indonesian Named Entity Recognition. InNER is based on a set of rules capturing the contextual, morphological, and part of speech knowledge necessary in the process of recognizing named entities in Indonesian texts. The InNER strategy is one of knowledge engineering: the domain and language specific rules are designed by expert knowledge engineers. After showing in our previous work that mined association rules can effectively recognize named entities and outperform maximum entropy methods, we needed to evaluate the potential for improvement to the rule based approach when expert crafted knowledge is used. The results are conclusive: the InNER method yields recall and precision of up to 63.43% and 71.84%, respectively. Thus, it significantly outperforms not only maximum entropy methods but also the association rule based method we had previously designed.