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Cablegate: Blue Lantern Level 3 - Pre-License End-Use Check On License

VZCZCXYZ0001
RR RUEHWEB

DE RUEHJA #2898 2880741
ZNR UUUUU ZZH
R 150741Z OCT 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 6681
INFO RUEHGP/AMEMBASSY SINGAPORE 6183

UNCLAS JAKARTA 002898

SIPDIS

SENSITIVE
SIPDIS

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

E.O. 12958: N/A
TAGS: KOMC ETTC ECON ID SN
SUBJECT: BLUE LANTERN LEVEL 3 - PRE-LICENSE END-USE CHECK ON LICENSE
05-050059413

REF A) SECSTATE 127871; B) JAKARTA 011302

1. (U) Summary: The Indonesian firm PT. Sarigema Dinamika
(Sarigema) confirmed on October 2 its order of circuit cards for F-5
aircraft radio communication detailed in Ref A. Sarigema supplies
the Indonesian Air Force (IAF) with aviation, communication,
navigation and radar equipment, products and parts. An IAF officer
confirmed on October 3 that Sarigema is indeed a registered supplier
on the IAF's supply list and that IAF placed an order with the
company for F-5 circuit cards for radio communication equipment.
End summary.

2. (U) On October 2, PT Sarigema Purchasing Officer Teresia
Suryawijayati confirmed that the company received an order from IAF
on July 24, 2007 to procure radio communication equipment detailed
in Ref A for IAF F-5 aircraft, which is scheduled for delivery in
November 2007. Sarigema placed the purchase order with one of its
U.S. suppliers, Sun Aviation, Inc., located at 10010 East 87th
Street, Raytown, MO 64138, U.S.A. Suryawijayati said that those
orders will be shipped by air from U.S. vendors via Singapore as
there is only one direct flight from the U.S. to Indonesia (Guam to
Bali). Sarigema uses a local air forwarder Mega Indah Cargo (Mega),
which has a warehouse at the Singapore airport, as noted in Ref A,
for transit before shipping to Jakarta. Mega then delivers the
components to Sarigema before they go to the warehouse at Halim Air
Force Base, where all IAF's procurement orders are received.

3. (SBU) We contacted Deputy Director of Electronic Combat Equipment
Colonel Novizon Jamaan at the IAF Directorate of Communication and
Electronics on October 3. Colonel Novizon confirmed that Sarigema
has been a registered IAF supplier for more than ten years. Novizon
also confirmed that his office placed the order with Sarigema for
components detailed in Ref A in July 2007 for installation on their
F-5 aircraft.

4. (SBU) Sarigema was the subject of a Blue Lantern check in 2004.
On November 5, 2004, we visited Sarigema and met with the company's
Director Rachmat Tedjapranata, for site visit and transaction
verification (Ref B). Tedjapranata informed us that PT. Sarigema
Dinamika began operating in 1990 and has had a relationship with Sun
Aviation for the past 14 years. PT Sarigema Dinamika has both
government and commercial customers and is an importer of aviation,
communication, navigation and radar equipment, products and parts.
The company lists several U.S. suppliers in its company profile,
including Aircrafters Inc., Aero Technology Inc., Inair Aviation
Service Inc., Jet International Inc. and Sun Aviation Inc. In
addition, the Government of Indonesia has licensed PT Sarigema
Dinamika to repair equipment at its workshop facility in Jakarta.

5. (SBU) Suryawijayati told us that there has been no change in
ownership of PT. Sarigema Dinamika except for a minor rotation at
the managerial level. The company has 25 personnel and is located
at the same address we visited three years ago: Jalan Daan Mogot
No.119, Blok A-12, Jakarta Barat 11510, Indonesia, phone: +62 21 566
9447 and fax: +62 21 560 4465. Sarigema key officials include:

-- Air Vice Marshall (RTD) Sutoyo, President Director. Sutoyo has
28 years of experience with the Indonesian Air Force as a pilot at
the Air Force Academy and Operations. He is also former Director
General for Air Transportation, Ministry of Transportation;

-- Rachmat Tedjapranata, Marketing Director. Tedjapranata has
experience as an electrical engineer for 29 years, specializing in
communication and avionics product marketing;

-- Moh. Muslich, Public Relation. Muslich has 15 years experience
working for Dirgantara Indonesia, a state owned aircraft
manufacturer;

-- Mr. Purwadi, Workshop Manager. Purwadi also has more than five
years experience with Dirgantara Indonesia.

6. (SBU) Comment: After verification with both Sarigema and the
Indonesian Air Force's Directorate of Communication and Electronics,
our assessment is that this transaction is legitimate.

HEFFERN

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