BLUE LANTERN LEVEL 3 - PRE-LICENSE END-USE CHECK ON LICENSE

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