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

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