VZCZCXYZ0002
RR RUEHWEB

DE RUEHJA #9156/01 2020820
ZNR UUUUU ZZH
R 210820Z JUL 06
FM AMEMBASSY JAKARTA
TO SECSTATE WASHDC 7586

UNCLAS JAKARTA 009156 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EAP/IET, PM/DTCC/BLUE LANTERN COORDINATOR - REBECCA 
VALERIN 
 
E.O. 12958: N/A 
TAGS: KOMC ETTC ECON ID
SUBJECT: BLUE LANTERN LEVEL 3--PRE-LICENSE END-USE CHECKS ON 
APPLICATION 05-05008154 
 
REF: SECSTATE 065656 
 
¶1.  Summary:  PT Dirgantara Indonesia (DI) verified on July 
21 that it ordered the CN235 components from Summit Aviation 
in October 21, 2005 (see reftel).  The transaction is 
related to a sales contract from 1996 between DI and 
Indonesia's Department of Defense to build CN235 aircraft 
for the Indonesian Air Force (IDAF).  We believe that this 
contract is legitimate.  End summary. 
 
¶2.  We contacted PT Dirgantara Indonesia's Engineering 
Services and Logistics Division Head Mulawarman Wangsaputra 
on July 21 to verify order number 05-0008154.  Mulawarman 
confirmed that DI had ordered the CN235 components detailed 
in reftel from U.S. firm Summit Aviation on October 21, 
¶2005.  According to Mulawarman, DI provides post-sale 
services and product maintenance to all its customers 
including IDAF.  As such, when DI receives an order from one 
of its customers, they will endeavor to buy spare parts and 
components from the original manufacturer or its affiliate. 
Mulawarman said that DI is well aware of the restrictions of 
USML articles, including those pertaining to re-export. 
 
¶3.  According to Mulawarman, the current DI order is related 
to the 1996 sales contract between Indonesia's Department of 
Defense and PT Dirgantara Indonesia to build CN235 aircraft 
for the Indonesian Air Force as end user.  Due to the 
Government of Indonesia's budget constraints, DI's 
production process was subject to a substantial delay.  The 
reftel order included the components that DI bought from 
various sources as they re-started their production line to 
build the CN235 for IDAF. 
 
¶4.  We also contacted the Indonesian Air Force, Aero 
Division, Air Transport Section Head Lieutenant Colonel Amin 
Sulaksono on July 21 to confirm order number 05-0008154. 
According to Amin, he is still trying to find the original 
paperwork from 1996 for the IAF's order.  He said that he 
will inform us as soon as he finds the 1996 documents.  He 
did confirm, however, that IDAF is still awaiting the 
delivery of its CN235 aircraft from DI. 
 
¶5.  PT Dirgantara Indonesia, also doing business as 
Indonesian Aerospace (IAE), was established in 1976 and is 
an Indonesian state-owned enterprise.  DI is one of the 
first indigenous aerospace companies in Asia with a core 
competence in aircraft design, development and manufacturing 
of civilian and military regional commuter aircraft.  Before 
2000, the company was called Industri Pesawat Terbang 
Nusantara (IPTN) and was led by former Indonesian President 
Habibie.  On August 24, 2000, then President Abdurrahman 
Wahid officially changed the name of IPTN into PT Dirgantara 
Indonesia or Indonesian Aerospace.  The Government of 
Indonesia owns 100 percent of the outstanding shares in the 
company.  DI has produced and delivered more than 300 units 
of aircraft and helicopters, defense systems, aircraft 
components, and other services to their customers. 
 
¶6.   Dirgantara Indonesia's aircraft products include the 
CN235 Civil, CN235 Military and CN235 Maritime.  They also 
hold an aircraft production license as part of a subcontract 
program for the NC212, Boeing 757, and Airbus A330, A340 and 
A380 and a helicopter production license for the Super Puma 
NAS-332.  The company also provides engineering services 
such as design development testing, manufacturing 
subcontracts, and aircraft and engine maintenance repair and 
overhaul (MRO).  DI also has four subsidiary companies 
including a company named IPTN-North America, Inc., located 
in Tukwila 1035 Andover Park West, Suite B, Seattle, WA 
98188 - 7681, U.S.A.  Detailed information about the company 
can be viewed at their website: www.indonesian-aerospace.com 
 
¶7.  The following are DI's regular customers: 
 
-- Domestic civil aviation: Merpati Airlines, PT. Gudang 
Garam; 
 
-- Foreign civil aviation: Asian Spirit (Philippines) and 
Thailand's Department of Agriculture; 
 
-- Domestic military: Indonesian Air Force, Indonesian Navy 
and Indonesian Army; 
 
-- Foreign military:  Malaysian Air Force, Brunei military, 
Korean military, Pakistani Air Force. 
 
¶8.  Post finds that PT Dirgantara Indonesia is a well-known 
and legitimate company.  The address for PT Dirgantara 
Indonesia is as follows: 
 
Jl. Pajajaran 154 
Bandung 40174 
West Java, Indonesia 
Tel: +62 22 603 3900, 603 1717 
Fax: +62 22 603 3912, 603 2052 
 
PASCOE