https://wikileaks.org/plusd/cables/07JAKARTA3155_a.html
Classified By: Ambassador Cameron R. Hume, reasons 1.4(b,d).
1. (C) SUMMARY: There are signs that the GOI is increasingly
interested in purchasing U.S. military equipment as it begins
to rebuild its defense capabilities. Two prospective F-16
deals continue to move forward (ref a) and the Indonesian
military is considering possible deals for other items. We
now understand the Indonesian Army is interested in two major
U.S. systems. This growing interest by the Indonesian
military (TNI) as a whole in U.S. equipment reflects, we
believe, a strong preference for U.S. quality and
reliability. Mission supports this process and urges
Washington to take this opportunity to further cement defense
ties with Indonesia. END SUMMARY.
F-16 DEALS A STEP CLOSER TO TAKEOFF
2. (C) The two previously reported prospective F-16 deals,
one for new planes and the other involving mid-life upgrades
(ref a), are moving forward. Regarding the first, a U.S.
team--including representatives of Lockheed-Martin and
officials from the Air Force--will visit Indonesia during the
week of November 26 to make an offer of price and
availability. Lockheed representative James Gribbon
confirmed this information to Defense Minister Sudarsono in
Sudarsono's meeting with a delegation from the US-ASEAN
Business Council on October 30 in Jakarta.
3. (C) Gribbon later told Mission that, in his view, it is
critical that Washington put together an attractive financing
package in order to secure the deal, given the substantial
cost of the purchase and the Russian government's competing
offer of Russian military equipment valued at $1 billion on
the basis of soft credits.
4. (C) The second deal reportedly was circulated for GOI
interagency review near the beginning of November. The
Department of Defense is heading that process.
ARMY NOW OPEN TO U.S. SYSTEMS
5. (C) According to both commercial vendors and TNI
officials, the Indonesian Army is considering new U.S.-origin
equipment to replace obsolescent systems. One ageing system
consists of British-origin Rapier air-defense missiles, which
could be replaced by a U.S.-origin multi-point fixed system
of missiles and guns with a range of five kilometers or less.
The Army Headquarters, which has budgeted the project at
$100 million, appears to be drawing upon multiple sources,
including Polish missiles. On the basis of indications that
U.S. systems would be seriously considered, Mission has
encouraged Raytheon to seek approval to provide a price and
availability quotation.
6. (C) Also up for replacement are the British-origin
Scorpion light-track reconnaissance vehicles. According to
sources in Indonesia, the TNI reportedly is looking to spend
$46 million for wheeled (6x6) armored personnel carriers
(APC), which could double as infantry fighting vehicles, and
is considering a U.S. model among the options.
7. (C) A turning point in the Army's thinking may have
occurred at a meeting of Army Chief Djoko Santoso with
Embassy defense officials on September 3. The meeting,
Mission's first substantive meeting on assistance with
Santoso since the lifting of U.S. sanctions two years
earlier, involved an extensive briefing of U.S. programs,
including IMET, FMF, FMS, Section 1206 and others, and was
attended by Santoso's senior staff. The atmosphere was very
positive, as though a new leaf had turned over. We note that
shortly before these meetings, Washington had issued an
export license for competition pistols. Santoso was aware of
this development, and seems to have taken the issuance as
JAKARTA 00003155 002 OF 003
proof that sanctions had indeed been lifted and the United
States was newly interested in Indonesia as a partner.
NAVY: AN ISSUE OF REPLACEMENT PARTS
8. (C) Mission has sought to clarify and resolve several
complaints by Navy staff, including outgoing Navy Chief
Slamet Soebijanto, alleging difficulty in obtaining U.S.
parts for TNI Navy equipment. These complaints were raised
at the 2007 Strategic Dialogue
Old 2007 Wikileaks on
More than decade old Wikileaks paper
Indonesia considering US systems
1) Air Force eyeing F-16 & MLU
2) Army eyeing US systems to replace ageing Britain made Rapier systems & plan to replace Scorpion reconnaissance light tank with 6x6 APC which could double as IFV considering US models
3) Navy eyeing parts from US
This is more than decade paper. Some go as planned, some replaced with other systems and some due to policy changes overcourse of time.
https://wikileaks.org/plusd/cables/07JAKARTA2725_a.html
Classified By: Deputy Pol/C Stan Harsha for reasons 1.4 (b,d).
1. (C) SUMMARY: Indonesia is actively pursuing two large
orders for new U.S. F-16 planes and parts to refurbish its
existing older models. The two deals, a Foreign Military
Sales (FMS) case and a commercial case, each involving
several hundred million dollars, demonstrate that the
Indonesian Air Force and Ministry of Defense can find the
money to spend on high priority arms and are willing to buy
U.S. equipment, if the deal is right. The F-16 purchases,
should they proceed, suggest the Indonesian Air Force is
serious about longer-term military cooperation with the USG.
The Army and Navy, however, have shown little interest in
U.S. equipment since the resumption of mil-mil relations in
2005. END SUMMARY.
2. (C) GOI CONSIDERS DEALS: The Indonesian government is
seriously pursuing spending several hundred million dollars
on U.S. F-16 fighter jets and parts as part of Indonesia's
effort to rebuild its military. Despite a defense budget
which is one of the lowest in the region, Indonesia is
apparently finding the money and the financing to consider
major deals. The two purchases, which originate from the Air
Force and Defense Ministry, respectively, do not appear to be
coordinated with one another, pointing up the bifurcation
that persists in Indonesian military budgeting, planning and
procurement. These deals come on the heels of a
much-ballyhooed USD 1 billion arms deal with Russia, based
entirely on credit, which was signed during President Putin's
recent visit to Jakarta (see reftels).
3. (C) DEAL NO. 1 DIRECT USG SALE (FMS): The first deal
involves a request for price and availability data by the Air
Force for sixteen new F-16s block-52 production models, with
the stated intention of taking delivery beginning in 2012.
The basic block normally costs about USD 12.5 million and
additional systems can run as high as USD 33 million per
plane. While the details of the proposed order are not yet
clear, a modest average cost of USD 30-35 million would mean
USD 500 million for the entire fleet. The request was placed
by the Air Force's Director of Aeronautics during a U.S.
visit currently under way. The order appears to have been
placed without internal coordination with either the
headquarters of the Indonesian Armed Forces (TNI) or the
Ministry of Defense (DEPHAN), although DEPHAN approval will
almost certainly be needed for eventual completion. This way
of doing business continues to be a pattern of individual
service operation. The deal shows the Indonesian Air Force's
preference for U.S. equipment. All of the six new FMS cases
that Indonesia has opened since the lifting of U.S.
restrictions in November 2005 have been placed by the Air
Force, for a total of USD 47 million, while the Indonesian
Navy and Army have yet to approach us.
4. (C) DEAL NO. 2: COMMERCIAL SALE: The second deal, which
is being prepared by DEPHAN, involves the refurbishment and
upgrading of ten older non-flyable and four flyable F-16
models already in Indonesia's fleet, plus the purchase and
upgrading of six additional planes from either Belgium or
Holland. All would require mid-life upgrades (MLU) in
Indonesia, bringing the total current F-16 fleet to twenty.
The deal, which is still being negotiated with a private
company, would involve the establishment of a Maintenance and
Repair Organization (MRO) which would eventually be
transferred to DEPHAN, at a cost of USD 18-20 million. The
estimated cost of each upgrade of the 20 planes is USD 9-11
million, excluding the cost of purchasing the six foreign
planes. The deal, which is estimated to total USD 200
million, would be financed by an international consortium,
with GOI guarantees, would involve repayment over several
years at an interest rate at or near the EXIM Bank rate.
5. (C) IMPLICATIONS FOR U.S.-INDONESIA MILITARY RELATIONS:
The commercial deal is likely to be finalized first, possibly
JAKARTA 00002725 002 OF 002
Original plan for F-16s back in 2007 leaked documents
1) Procuring through Foreign Military Sales ( FMS ) 16 brand new F-16 C/D Block 52
2) Upgrading & Refurbishment of 10 nonflyable & 4 flyable models already in Indonesian Fleet ( F-16 A/B Block 15 OCU ) and to add another 6 same models from Netherlands/Belgium, all of which to undergo Mid-Life Updates ( MLU ).
