BLUE LANTERN PRE-LICENSE CHECK AS INDONESIAN AIR

UNCLAS JAKARTA 006020 SIPDIS SIPDIS DEPT FOR EAP/IET, PM/DTCC/BLUE LANTERN COORDINATOR - PETER DADE E.O. 12958: N/A TAGS: KOMS ETTC ECON ID SN US SUBJECT: BLUE LANTERN PRE-LICENSE CHECK AS INDONESIAN AIR FORCE PROCUREMENT AGENT REF: SECSTATE 28470 ¶1. Summary. The Indonesian Air Force (AF) verified that a division of the Air Force Procurement Service has ordered the C-130 radar components detailed in reftel. The AF seeks to purchase the C-130 radar components through their local agent PT. Dwi Anugrah, which sub-contracted the order to the Singapore firm Sintong Trading Company. Dwi Anugrah officials declined to meet with us, but said they are not certain whether the transaction is still pending due to the possible expiry of their letter of credit. End summary. ¶2. We contacted Indonesian AF Credit Export Officer Colonel Yuri Afiuddin Anwar on February 28, 2006 to confirm the order of C-130 radar components described in reftel. Colonel Yuri confirmed that AF Sub-Service Electronic Procurement Division, a division of the Air Force Procurement Service, has ordered the components listed in reftel. Colonel Yuri noted that the Singaporean firm Sintong Trading Company is a business counterpart of the AF's local agent PT. Dwi Anugrah, which first received the order from the AF. ¶3. The AF Procurement Service ordered the C-130 radar parts under contract number 133/2113/D5/DP/2005/AF through Dwi Anugrah, which is located in Ruko Royal Sunter Block A-25, North Jakarta, Indonesia. We called Dwi Anugrah and confirmed that Oki Benjamin Odang is the company's director, a point the AF also confirmed in a telephone conversation. ¶4. We requested a follow-up meeting with Dwi Anugrah to review and verify documentation on April 3, but they declined to meet. Mr. Suwandi (one name only),on behalf of the company suggested he would first get confirmation from Sintong whether the transaction remains viable, and only then would meet us to review documentation if necessary. Suwandi stated that the order from the AF is legitimate and said his company sub-contracted it to Sintong, which in turn opened a letter of credit (L/C) for the order. Suwandi expressed concern that the L/C may have expired due to delays in processing the order. PASCOE