BLUE LANTERN LEVEL 3: PRE-LICENSE CHECK ON APLICATIONS

UNCLAS JAKARTA 013528 SIPDIS SIPDIS DEPT FOR EAP/IET, PM/DTCC/BLUE LANTERN COORDINATOR - TIM WATKINS E.O. 12958: N/A TAGS: KOMC ETTC ECON ID SN SUBJECT: BLUE LANTERN LEVEL 3: PRE-LICENSE CHECK ON APLICATIONS 05-1008640 REF: STATE 182359 ¶1. Summary. The Indonesian firm PT Trio Yomasu (TY) verified on December 11 its order of component parts for aircrafts detailed in reftel. TY supplies the Indonesian Air Force (IAF) with aircraft spare parts and maintenance services. It also serves as a local representative for U.S. aircraft parts supplier Electronic Manufacturers Associated. We visited TY's offices on December 15 and TY management showed us company registration documents and supply contracts with the IAF. An IAF officer confirmed on December 11 that TY is indeed a registered supplier on the IAF's list. End summary. ¶2. We contacted TY on December 6, to verify order number 05-1008640 and found that Director Johan Benardi was out of country. On December 11, TY employee Katherine Chandra called the Embassy and confirmed that Trio Yomasu placed the order for spare parts listed in reftel. She noted that U.S. aircraft parts supplier Electronic Manufacturers Associated (EMS),located at 9707 Mason Avenue, Chatsworth, CA, 91311, suggested TY request a "blanket export license order" for spare parts for several types of aircraft listed in reftel. The blanket license, according to TY, is for future reference. Once TY receives a procurement contract from IAF for aircraft spare parts detailed in reftel, it would use the blanket license. The $2 million license value is an estimated value for the company's contract with IAF over a four-year timeframe. ¶3. In addition to acting as a parts purchaser, TY also performs maintenance for the Indonesian Air Force. The company repairs spare parts, avionic systems and other equipment in its workshop located at the address in reftel. TY also represents EMS in administrative matters including signing contracts with the Indonesian Air Force. There is a direct business contract between EMS and the IAF, and TY administers the contract on behalf of EMS. In July 2006, TY explored a "Distribution and Warehouse Agreement" with EMS, but Chandra said she was not sure of where this agreement stands. ¶4. We conducted a site visit on December 15 to TY's offices at the address listed in reftel. Chandra showed us a business license issue by the Indonesian Ministry of Trade showing that the firm has been at the same location since 1996. Chandra and Benardi said the firm subcontracts the majority of its IAF maintenance work to other firms. They showed us a contract with the IAF stating that all goods from EMS are to be delivered directly to a secure IAF warehouse at an airport facility and kept under guard there. ¶5. We also contacted Indonesian Air Force Aircraft Transportation Division Lieutenant Colonel Amin Sulaksono on December 11 to verify the supplier. Sulaksono confirmed that PY is indeed a registered supplier on their list. He said IAF previously placed an order to procure aircraft spare parts through TY. HEFFERN