Case File

The Indonesian AW101 Helicopter Deal

Author
Shadow World Investigations
Published on
October 1, 2024
Image
A UK AW101 helicopter in Iraq in 2007, image for illustration purposes. Credit: U.S. Army - Public Domain. Use of U.S. The appearance of U.S. Department of Defense (DoD) visual information does not imply or constitute DoD endorsement.
A UK AW101 helicopter in Iraq in 2007, image for illustration purposes. Credit: U.S. Army - Public Domain. Use of U.S. The appearance of U.S. Department of Defense (DoD) visual information does not imply or constitute DoD endorsement.

Contents

Contents

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Introduction

Introduction

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In November 2015, the Indonesian Air Force expressed its intent to procure three AW101 helicopters for VVIP transport missions, a deal that was cancelled by President Widodo on the grounds of its high cost. Yet, one helicopter was procured from British-Italian helicopter maker AugustaWestland. Today, it remains idle, locked in one of the hangars overlooking the runway, having made no flights but continuing to incur maintenance costs. It is yet another case of corruption in the sale of AgustaWestland helicopters.

This case summary is largely based on reporting by Italian and British journalists, published in Declassified UK.

Case Details

Case details

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Seller country
Italy, United Kingdom
Seller company
AgustaWestland (previously part of Finmeccanica, now Leonardo Helicopters)
Buyer country
Indonesia
Goods category
Helicopters
Equipment sold
1 AW101 helicopter
Deal value
IDR 738.9 billion (2015 USD: 53.5 million )
Sum involved in corruption
at least INR 17.7 billion (2015 USD 1.3 million)
Start year
2015
End year
2017
Outcome status
No legal Investigations Begun, Trial Closed - Some Convictions, Mixed

Actors

Actors

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  • Irfan Kurnia Saleh - Indonesian businessman and intermediary in the deal; found guilty of bribery.

  • General Agus Supriatna - Former head of the Indonesian Air Force and recipient of the bribes; not convicted of any crime.

  • Lorenzo Pariani - Former head of Finmeccanica’s Helicopter division in South-East Asia;

  • **General Gatot Nurmantyo - Former head of the Indonesian Army; tried to prevent the purchase of the helicopter.

Allegations

Summary of Corruption Allegations

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Irfan Kurnia Saleh, Indonesian businessman and intermediary in the deal has been convicted of bribing a general for the purchase of the helicopter, while the general himself, or the European companies benefitting from the deal, have avoided charges.

Timeline

Timeline

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2015
  • General Supriatna ordered the procurement of a helicopter. As the tender opened, he contacted Irfan Kurnia Saleh, a longtime friend he knew dealt in helicopters from Italian arms company Leonardo, formerly known as Finmeccanica.
  • Saleh contacted Lorenzo Pariani, who mentioned having an AW101 helicopter available from a previous deal with India that had been cancelled because the ordered helicopters did not meet Indian requirements (see “The Indian VVIP Helicopter Deal”).
  • Indonesia’s president Joko Widodo opposed the purchase, arguing that the country did not need a new helicopter. General Supriatna modified the specifications to portray it as essential for search and rescue operations instead of solely for VVIP transport. The AW101 helicopter is available in different configurations.
2016
  • 29 JulThe Air Force proposed purchasing one helicopter, saying it was not for presidential purposes, but for military use, as well as search and rescue operations.
  • General Supriatna successfully convinced members of parliament to divert funding for the purchase.
  • The price for the helicopter was revised upwards. In 2024 Euros, it was raised by EUR 13.5 million to approximately EUR 44 million. Of this sum, EUR 23.4 million was directed to AgustaWestland, EUR 11 million to Saleh, just over EUR 8 million to Leonardo, and EUR 1 million to General Spriatna.
  • The deal began to unravel when General Gatot Nurmantyo, then the commander of the Indonesian army, a rival of the Air Force, became aware and ordered its cancellation. General Supriatna argued that the acquisition of the AW101 would come out of the Air Force’s budget, thus rendering objections from the army and other legal concerns irrelevant.
  • DecAn AW101 helicopter with Indonesian markings is photographed carrying out a test flight from Leonard’s facilities at Yeovil in the UK. That helicopter was traced by its construction number to the cancelled Indian order. It turned out that the helicopter had been ordered and the Air Force under Supriatna had circumvented the regular procurement process.
2017
  • JanThe helicopter arrived at Halim military airport near the Air Force headquarters. The supplied helicopter was one in the VVIP configuration, rather than the Search and Rescue operation, and was estimated to be at least second if not third hand rather than new. The Air Force thus refused delivery.

Outcomes

Investigation Outcomes

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2017
  • Irfan Kurnia Saleh sued the military for refusing the delivery.
  • FebThe Indonesian Air Force begins an investigation into the helicopter deal. Following initial investigations, the EUR 11 million that Saleh allegedly obtained from Leonardo for the transport of the helicopter and future maintenance was frozen. Not frozen were the EUR 1 million allocated to General Supriatna, which was considered insufficient to evidence corruption.
2019
  • The charges against the military were dropped and as of 2024 there were no suspects among General Supriatna or his staff.
2023
  • The Jakarta Corruption Court sentenced Saleh to 10 years in prison, plus a fine of IDR 1 billion, subsidiary to 6 months in prison, plus the obligation to pay state losses of IDR 17.22 billion, subsidiary to 2 years in prison.

References

References

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  • antaranews.com. 2017. “Indonesian Air Force Investigates Purchase of AW-101 Helicopter.” Antara News. ANTARA. February 9, 2017. https://en.antaranews.com/news/109323/indonesian-air-force-investigates-purchase-of-aw-101-helicopter.

  • Bagnoli, Lorenzo et al. 2024. “Anglo-Italian Arms Firm Leonardo Embroiled in Indonesia Corruption Scandal.” Declassified Media Ltd. August 6, 2024. https://www.declassifieduk.org/anglo-italian-arms-firm-leonardo-embroiled-in-indonesia-corruption-scandal/.

  • Editorial Team. 22AD. Review of The Judge Calls State Losses in the Case of Procurement of AW-101 Helicopter . VOI, February 22AD. https://voi.id/en/news/257123.

  • ‌Yeo, Mike. 2017. “Another Twist in Indonesia’s Puzzling AW101 Helicopter Buy.” Defense News. February 16, 2017. https://www.defensenews.com/air/2017/02/16/another-twist-in-indonesia-s-puzzling-aw101-helicopter-buy/.

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