GOI CLAIMS MIX-UP IN SMALL ARMS SEIZED IN THE

C O N F I D E N T I A L JAKARTA 001458 SIPDIS DEPT FOR EAP, EAP/MTS, EAP/MLS, EAP/RSP, PM NSC FOR J. BADER E.O. 12958: DECL: 09/03/2019 TAGS: PREL PGOV PARM ID RP SUBJECT: GOI CLAIMS MIX-UP IN SMALL ARMS SEIZED IN THE PHILIPPINES Classified By: Pol/C Joseph L. Novak, reasons 1.4(b+d). ¶1. (C) SUMMARY: According to the GOI, the recent seizure of Indonesian-made small arms by the Philippines was a mistake, as the arms were lawfully exported from Indonesia. The seizure has hit the press here and Indonesian lawmakers have pledged to investigate the country's arms-related export control system. Prompted by the negative press play, the Ministry of Defense has announced that the GOI is forming a new agency to monitor arms-related transfers. The Indonesian small arms industry is not well-developed and is primarily the domain of state-owned enterprises. Mission is working with the GOI to strengthen its export control regime. END SUMMARY. SEIZURE OF SMALL ARMS ¶2. (SBU) The GOI has been investigating the recent seizure of Indonesian-made small arms by the government of the Philippines. According to press reports and GOI contacts, Philippine customs officials detained a Panama-registered vessel for failing to give notice before mooring off of the Bataan Peninsula. They then seized a cache of small arms which were reportedly destined for the government of Mali and a Philippine shooting association, asserting that the arms were being unlawfully imported into the Philippines. Customs officials reportedly confiscated 10 P-2 handguns, 100 SS1-V1 assault rifles and other military devices. ¶3. (C) Indonesians believe that the seizure was in error and that the small arms were legally exported. According to GOI Defense Ministry spokesman Brig. General Slamet Hariyanto, state enterprise PT Pindad was responsible for the small arms cargo until the cache was placed on board the vessel at which time the shipping company took over responsibility. Military Chief General Djoko Santoso said that PT Pindad had been authorized to export the shipment by the Ministry of Defense and the State Ministry for State Enterprises. ¶4. (C) The Indonesian Director General of Customs and Excise told the press that the documents were in order at the time of the ship's departure from Jakarta's port. The seized goods were valued at under USD 100,000. RWB Arms Inc, a Philippine company was responsible for handling the shipment upon arrival in the Philippines, according to the GOI, and the GOI believes that that company had valid papers. GOI contacts have insisted to us that the small arms were bound for legitimate end-users (they did not confirm who, though Mali and a Philippine shooting association have been mentioned). LAWMAKERS TO INVESTIGATE; GOI TO CREATE NEW AGENCY ¶5. (SBU) The incident has hit the press here and caused a stir. It prompted Indonesian lawmakers to pledge to investigate the seizure. Yusron Ihza Mahendra and Djoko Susilo, lawmakers on Parliament's Commission on defense and foreign affairs, said the government should question pertinent GOI officials to understand where any misunderstandings occurred and push for tighter export controls for arms-related purchases. ¶6. (SBU) Reacting to all of the commentary, Indonesia's Ministry of Defense announced on September 1 that the government was planning to establish a new agency to supervise the import and export of weapons. INDONESIA'S SMALL ARMS INDUSTRY ¶7. (U) The small arms industry in Indonesia is not well-developed and Indonesia does not have much export trade of arms-related items. PT Pindad, the largest small arms manufacturer, is a state-owned enterprise specializing in military weapons and ammunitions. Until 1983, it was under the management of the Indonesian military. PT Pindad is now under the authority of the Ministry for State Enterprises. ¶8. (U) Mission continues to work with the GOI to strengthen its export control regime. HUME