BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON

UNCLAS JAKARTA 000435 SIPDIS SIPDIS DEPT FOR EAP/IET, PM/DTCC/BLUE LANTERN COORDINATOR - TIM WATKINS E.O. 12958: N/A TAGS: KOMC ETTC ECON ID SUBJECT: BLUE LANTERN LEVEL 3: POST-SHIPMENT END-USE CHECK ON LICENSE 050055990 REF: SECSTATE 11295 ¶1. Summary. Indonesian Air Force (IAF) officer Colonel Robert confirmed that IAF ordered the antiskid generator test set detailed in reftel from CV Langgeng Mandiri Jati (Langgeng. He said that the IAF received the item on October 29, 2007 and that it has been used to check the function of the F-16's wheel brakes during maintenance procedures. Langgeng confirmed that it forwarded the order to Indonesian firm PT Cakra Lima Pamungkas (CLIP). CLIP verified the order, via PT Primandiri Perdana (Primandiri),of the test set detailed in reftel. Based on our observations during site visits, CLIP and Primandiri appear to be legitimate business operations. End summary. ¶2. We contacted Langgeng's Director Enah Suhaenah on February 21, 2008 and she confirmed receiving the order detailed in reftel from IAF in June 2007. She said that due to limited supplier connections, Langgeng requested that CLIP place the order. On February 21, 2008 Colonel Robert of the IAF confirmed that Langgeng is a registered supplier on their list. He said the IAF has no knowledge of Primandiri, CLIP or Intrasindo and they are not on the IAF's list of registered suppliers. ¶3. We visited CLIP on February 15, 2008 and met the co-owner Jemmy Adriano to verify the order of items noted in reftel. Adriano confirmed that his company received the order for an antiskid generator test set from Langgeng in June 2007, and forwarded the order to Primandiri soon after. Both CLIP and Primandiri supply engines and aircraft spare parts to state-owned aerospace company PT Dirgantara Indonesia, or Indonesian Aerospace (IAe). Both companies also serve as local representatives for international aircraft parts suppliers. CLIP's usual suppliers, according to Adriano, supply engines and aircraft spare parts only to IAe. Adriano said his company had difficulties finding certain aircraft spare parts and that Primandiri is connected to a wider network on the supply side. ¶4. IAF placed the order with Langgeng, which subsequently forwarded it to CLIP. CLIP requested that Primandiri order the item, and Primandiri issued a purchase order to Liberty Logistics LLC in June ¶2007. For tax advantage purposes, Primandiri requested that the seller deliver the item to Intrasindo Pte Ltd, an international freight forwarder specializing in handling shipments from Singapore to Indonesia. The item reached Singapore on October 12, 2007 and was delivered to Primandiri on October 22, 2007. Primandiri held the item in its storage facility for a week, and IAF received the antiskid generator test set on October 29, 2007. We visited the storage rooms of Primandiri and CLIP. Each room is about 170 sq feet, with three to four security guards each. ¶5. CLIP was established in 2003, and commenced a multi-business operation in advertising, procurement, event-organizing, etc. Its core business is supplying aircraft spare-parts to IAe. It also acts as sales representative for several international suppliers, including US-based A.E. Petsche Co. Inc., Pacific Microtronics, Inc. and Metropolitan Aircraft Parts, Inc. CLIP has 24 employees and is a sister company of PT Angkasa Rejeki Abadi (Angkasa),a registered supplier on IAF's list, and also co-owned by Adriano. Robert confirmed that CLIP is a registered supplier of IAF. ¶6. Founded in 1996, Primandiri also supplies equipment and aircraft spare parts, mostly to IAe. Similar to CLIP, it acts as a sales representative for international suppliers e.g. France-based battery maker SAFT. The owner, Jejen Jaenudin, showed us the Directorate General of Civil Aviation, Ministry of Transportation's approval of Primandiri as a certified distributor of aeronautical products. An Aircraft Service (ACS) letter also shows that Primandiri is an approved supplier, subject to periodic quality audits by the quality control department of IAe's ACS Business Unit. Primandiri currently has 20 employees. HUME