BLUE LANTERN LEVEL 3: PRE-LICENSE CHECK ON

UNCLAS JAKARTA 013362

SIPDIS

SIPDIS

DEPT FOR EAP/IET, PM/DTCC/BLUE LANTERN COORDINATOR - MICHAEL
RUMERO

E.O. 12958: N/A
TAGS: KOMC ETTC ECON ID SN
SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE CHECK ON
APLICATIONS 05-1005798 AND 05-1007395

REF: SECSTATE 160481


1. (U) Summary. The Indonesian Air Force (IAF) verified
their orders of component parts detailed in reftel. The
foreign consignees are new to the military supply business,
however they have prior Indonesian government procurement
experience. End summary.


2. (U) We contacted Chief of Aeronautics, Air First Marshal
Sunaryo, to verify order number 05-1005798 AND 05-1007395.
Sunaryo could not explain the lack of IAF documentation for
this transaction, however, he did confirm that the IAF had
placed airplane spare-parts orders with PT. Mandira Jaya
Abadi and C.V. Bina Pratama for maintenance of their F-5 and
OV-10 aircraft. Sunaryo noted that both companies are
legitimate IAF suppliers, however, it has been a year and
the companies are waiting for export licenses for the
transactions detailed in reftel.


3. (U) We also contacted PT Mandira Jaya Abadi Director
Hariyanto Adipratomo on November 14, and learned that PT.
Mandira Jaya Abadi and C.V. Bina Pratama are sister
companies (per incorporation documents). Adipratomo
represented both companies to verify the orders. Adipratomo
confirmed that both companies received orders from the IAF
to provide spare-parts detailed in reftel for maintenance
for their OV-10 and F-5 aircrafts. Both companies contacted
Master Logistic located in Singapore as their intermediate
consignee for handling shipment of the goods. Adipratomo is
also aware of the restrictions on re-transfer and re-export
of USML.


4. (U) Adipratomo provided us copies of transaction
documentation via e-mail. The documents include:

-- End user statement signed by IAF Chief of Procurement Air
First Marshal Sridadi dated December 15, 2005 for order
number 05-1005798;

-- End user statement signed by IAF Chief of Procurement Air
First Marshal Sridadi dated June 20, 2006 for order number
05-1005798;

-- Export license application DSP 83 forms for both order 05-
1005798 AND 05-1007395;

PT. Mandira Jaya Abadi received order from IAF to procure OV-
10 aircraft spare-parts with its contract number
179/1197/DA/DR/2005/AU dated November 30, 2005. While C.V.
Bina Pratama recived order from the same end user with its
contract number 183/1356/DA/DR/2005/AU dated November 30,
2005 to procure F-5 aircraft spare-parts.


5. PT. Mandira Jaya Abadi was established in 1982. C.V.
Bina Pratama was established two years later in 1984. Both
companies are in Semarang, Central Java in the publishing
and general supply business. Starting in 2005 and 2006
Mandira and Bina expanded their business to supply spare-
parts to Indonesian Air Force for maintenance of aircrafts.
Reftel components are their first transaction with the IAF.
Previously, Mandira supplied simulators to the Indonesian
Ministry of Transportation.

PASCOE