Tiarma Siboro, Jakarta – The Indonesian Military (TNI) continues to maintain its weapons purchases have been completely legitimate, despite claims of one of the parties under investigation in a massive arms smuggling operation that it filled orders exclusively for the military.
Indonesian Military Chief Air Chief Marshal Djoko Suyanto told Antara newswire Wednesday that there were no plans to buy Sidewinder missiles last year.
An order for the missiles "would not be from the TNI," he was quoted as saying, adding that such purchases were only done on a government-to-government basis.
However, in a signed written statement, a businessman from Singapore-based PT Ataru Indonesia, a company acknowledged by the government as an Air Force supplier, said he dealt with supplying and purchasing spare parts for US-made military aircraft, including only days after the US restored full military ties last November.
Washington slapped a partial embargo on military cooperation following the 1992 massacre in Dili, East Timor. Joint training officially resumed last year; selling of spare parts for Hercules helicopters was permitted following the 2004 tsunami. Last November's official lifting of the 14-year embargo included allowing sales of lethal military hardware, although the US said it would depend on Indonesia's human rights record.
Hoedaifah Koeddah, a relative of one of the detained Indonesians who are accused by US investigators of plotting an illegal arms purchase, on Wednesday denied allegations the company's activities were illegal.
Hoedaifah took issue with the statement Monday by Defense Ministry secretary-general Lt. Gen. Sjafrie Sjamsoeddin that there was no order from the military. He countered that PT Ataru Indonesia's only customer for its business transactions was the TNI.
In the statement, also signed by his lawyer Tommy Sihotang, he said Ataru purchased military equipment compatible for US-made military aircraft, such as F-5 and F-16 jet fighters as well as Hercules transport carriers, from "a third party".
He cited documents that one of Ataru's business partners was Detroit-based Orchard Logistic Service (OLS), and said the company took steps to facilitate payment through local banks. Due to the embargo, he said Ataru set up two Singaporean-based companies, Indodial Pte. Ltd and Eastar Logistic Pte Ltd.
"Such transactions are labeled black market activities because they have never been officially published," Hoedaifah told The Jakarta Post and Kompas daily at his office in South Jakarta.
Indonesians Hadiyanto Joko Djuliarso, who is a relative of Hoedaifah, and Ignatius Ferdinand Suherli, co-partners of Ataru, Singaporean Ibrahim bin Amran and Briton David Beecroft, were detained on April 9 by US investigators in Honolulu for allegedly trying to purchase 245 Sidewinder missiles, 882 Heckler & Koch (HK) MP5 guns, 880 HK 9mm handguns, 16 HK sniper rifles and 5,000 rounds of ammunition.
The alleged illegal transactions took place when the company was involved in a US$600,000 contract with the Indonesian Air Force for the purchase of an aviation radar.
Defense Minister Juwono Sudarsono said Monday the partnership with Ataru, who he characterized as a "recalcitrant" business partner, would be reviewed.
The contract on the procurement of the radar shows it was approved on Nov. 30, 2005, when the embargo for lethal military hardware had been lifted for a week. A copy of the document shows the contract involved then top-ranking TNI officials and Ataru's subsidiary company Indodial.
Two middle-ranking Air Force officers – identified by Air Chief Marshal Herman Prayitno as Lt. Col. Hadi Suwito and Lt. Col. Edi Supriyanto – accompanied Hadiyanto for final rechecking of the aviation radar at its storehouse in Honolulu, but the US investigators have released the two officers without questioning.
Herman said the two officers were invited during the display of HK MP5 guns at its storehouse, "but my officers were the passive parties at that time".
He acknowledged the Air Force had proposed the procurement of Sidewinder missiles in 2004, but the project had been dropped because of the US embargo.
Prior to their arrest, Djuliarso and Amran had already transferred more than $455,000 from Asia to the United States, US investigators say.