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

VZCZCXYZ0005
RR RUEHWEB

DE RUEHJA #3437 3530816
ZNR UUUUU ZZH
R 190816Z DEC 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 7465
INFO RUEHGP/AMEMBASSY SINGAPORE 6249
RUEAIIA/CIA WASHINGTON DC
RUCPDOC/USDOC WASHDC 1512
RUEKJCS/SECDEF WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS JAKARTA 003437

SIPDIS

SIPDIS

DEPT FOR EAP/IET, PM/DTCC/BLUE LANTERN COORDINATOR - JUDD STITZIEL

E.O. 12958: N/A
TAGS: KOMC ETTC SN ID
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE END-USE CHECK ON
APLICATION 050067028

REF: SECSTATE149564

1. Summary: The Indonesian firm PT Anjelika Surya Jaya (Anjelia)
verified on December 13 its order of automati direction finder
(ADF) receiver for F-27 aircrat detailed in reftel. An Indonesian
Air Force (AF) officer confirmed on December 13 that Anjelika s a
registered supplier on the IAF's supply listand the IAF placed the
order. We visited Anjelia's office facility on Deccember 18, 2007
and conluded that while the company appears to be legitimte, it is
a small, unsophisticated operation withminimal on-site security.
End summary.

2. Wecontacted Anjelika Surya Jaya on December 13 to cofirm
transaction of goodds listed in reftel. Anjlika's marketing
executive Christian Deni confired that the company received an
order from the IA in September 2007 to procure spare parts for
IA's F-27 aircraft. On December 18, we met with Anjlika's
President Director Sardjono (retired IAF eneral) and Director
Sukirwan (retired IAF colonl) at their office. The third partner
in the comany, Rio Permana, was not able to attend. They prvided
copies of the contract with IAF for procurment of avionic
components as well as purchase oder and end user/end use statement
for the ADF rceiver detailed in reftel.

3. According to Deni,the ADF receiver will be shipped by air from
theU.S. seller through Horizon International, a freigt forwarder"
used by the company, in Singapore. Sardjono and Sukirwan said ssing
a shipping company in Singapore was cost-efe ctive. Horizon will
then deliver the component to Anjelika before sending to IAF's
warehouse a Halim Air Force Base in East Jakarta. Anjelika's
relationship with Horizon is only five to six monhhs old. Sardjono
and Sukirwan said the IAF typia lly chooses the shipping company.
Sardjono saidaa retired Navy friend, Maximilian Pong, recommendeQ
Horizon to him.

4. Sardjono and Sukirwan said they will hold the components in an
unused spaceaat Anjelika's office until delivery, which they sad
would be the same day or next business day. W observed the holding
space and noted that it isa small office with one barred window.
They said their office boy sleeps at the office so that the office
is never left unattended. There are no othr" on-site security
measures. However, the offic is located in an area that is
governed and patrl(led by the IAF as it contains the former IAF
Headquarters and still contains IAF officer housing. hhe IAF has
guards posted at the access points tot his area around the clock;
however, they only rsstrict entry at night.

5. Deni said that his cm(pany contracted to procure avionic
components without installation services. Deni said that the
oompany is well aware of the restrictions of UnitedSQtates Munitions
List (USML) articles, including those pertaining to unauthorized
re-transfer and re-exports. However, Sardjono and Sukirwan did not
know about the restrictions and they were surprised that the ADF
receiver was included on the USML because ADF receivers are used in
commercial airplanes and are not sensitive military equipment,
according to them.

6. PT Anjelika Surya Jaya was established in 2005 to supply
aircraft spare parts as well as ground radar and communications
parts. To date, the company supplies avionic components solely for
the IAF. Anjelika has regular procurement contracts with IAF to
supply spare parts for their Puma, Bell and Colibri helicopters.
Their accountant holds a Bachelor's degree in economics.

7. We contacted Lieutenant Colonel M. Gofar, IAF Section Chief of
Procurement Services for Radar and Avionics on December 13 to
confirm the transaction on application 050067028. Lt. Col. Gofar
confirmed that Anjelika Surya Jaya is their registered supplier.
Gofar confirmed that his office ordered components detailed in
reftel from Anjelika in September 2007. According to Gofar, this is
the first transaction with the company in 2007, but IAF plans to
place other orders in 2008. Lieutenant Colonel M. Gofar also
confirmed that an Indonesian Armed Force Squadron technician will
install the ADF receiver into their F-27 aircraft.

HUME

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