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