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Cablegate: Blue Lantern Results 05-050016544, 05-988470, 05-990843

VZCZCXYZ0011
RR RUEHWEB

DE RUEHJA #1290 1840509
ZNR UUUUU ZZH
R 020509Z JUL 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 9450
RUEHGP/AMEMBASSY SINGAPORE 6312

UNCLAS JAKARTA 001290

SIPDIS

DEPT FOR EAP/IET, PM/DTCC/BLUE LANTERN COORDINATOR - RACHAEL-THERESE
JOUBERT-LIN
SINGAPORE FOR ELIZABETH CROSSON

E.O. 12958: N/A
TAGS: KOMC ETTC ECON ID SN
SUBJECT: BLUE LANTERN RESULTS 05-050016544, 05-988470, 05-990843

REF: SECSTATE 052863

1. Summary. The Indonesian National Defense Forces Headquarters,
Strategic Intelligence Agency (BAIS) confirmed receipt of
telecommunication equipment listed in reftel and that they are being
used for the purpose stated on the license. We conducted a site
visit to Indonesian firm PT Ciptaarta Hadikara (Cipta) and it
appears to be a reliable recipient of United States Munitions List
(USML) items. End summary.

2. We contacted BAIS Deputy Purchasing Officer Lieutenant Colonel
Eddy Noviar on June 12 to verify the transactions detailed in
reftel. Noviar confirmed that BAIS received all items listed on
each of the licenses. He verified that Cipta is a registered
company on the BAIS supplier list. Noviar said BAIS has other
current contracts with this company.

3. We visited Cipta on June 20 and met the Director Aristotle SE and
his staff Otok Bimo Widagdo to verify the order of items listed in
reftel. Aristotle confirmed his company received the order from
BAIS in 2006 and that the items had been shipped in three shipments
and received by the end-user in March, April and August 2007.
Aristotle provided us with contract documentation signed by BAIS and
Cipta and delivery reports of each shipment. Aristotle said his
company was aware of restrictions on USML articles, particularly
those that are re-exported. Aristotle said his company never mixes
USML items with other products at the request of the end-user. The
intermediate consignee shipped the items directly to BAIS. BAIS
used its own expediter to pick up the items from the airport and
deliver them to the BAIS warehouse.

4. Cipta was established in 1995 as a trading company. Since
inception, the company's core business is supplying military
electronic and communications equipment. Since 2002, the company
has been acting as the Indonesian principal for Harris Corporation,
a U.S. based company. Their customers include BAIS, Indonesian
Navy, Indonesian Army and Indonesian Air Force. According to
Aristotle, Cipta has submitted two other export license applications
to the Department of State this year. Both export licenses are to
procure similar telecommunication items from Harris Corporation
ordered by BAIS.

HUME

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