BLUE LANTERN; VERIFYING BONA FIDES OF REGISTERED BROKER

UNCLAS JAKARTA 002102 SIPDIS DEPT FOR EAP/IET, PM/DTCC/BLUE LANTERN COORDINATOR - RACHAEL-THERESE S. JOUBERT-LIN E.O. 12958: N/A TAGS: KOMC ETTC ECON ID SUBJECT: BLUE LANTERN; VERIFYING BONA FIDES OF REGISTERED BROKER TIENCE SUMARTINI - CASE NO. K-2176 REF: A. SECSTATE 99631 ¶B. SECTION 38(B) (1) (A) (II) OF THE ARMS EXPORT CONTROL ACT (AECA) (22 U.S.C.2778) ¶1. This cable is in response to REFTEL A. SUMMARY: We visited PT ATS Buana Airtech - an Indonesian entity in the Aviation Industry Supply Business - on 22 December 2009 and met with President and Registered Broker Tience Sumartini to verify the Bona Fides of the company requested REFTEL. We found the company to be legitimate. President Sumartini was aware of the restrictions on United States Munitions List (USML) items, particularly the prohibition against unauthorized re-transfers and re-exports. END SUMMARY. BACKGROUND AND FACT FINDING -------------- ¶2. On the evening of 22 December 2009, Econoff conducted a site visit of PT Ats Buana Airtech (ATS) at ATS's listed Jalan Sekolah Duta Indah Plaza 2 office site. ATS occupied three floors in the busy office complex. Econoff was easily able to find ATS listed on the web and the physical location was clearly marked and recognized by guards and fellow denizens of the office area. Setting up the meeting date was transparent and easy. ¶3. Econoff met directly with Founder and President of ATS, Mrs. Tience Sumartini and engaged in a warm discussion about ATS and its various functions. Mrs. Sumartini described ATS as an aviation service company that operates in the Indonesian market supplying aircraft parts, aircraft leasing, and aircraft interiors. ATS's primary market is to domestic Indonesian airlines, aircraft manufacturers, and aviations training institutions. The list of ATS clients includes Garuda, Lion Air, Indonesian airspace and several other small airlines and aviation services companies. ATS is licensed broker for the US firm United Technologies International (UTI),and two corporations under UTI's corporate umbrella, Pratt and Whitney and Hamilton Sundstrand and sells UTI's commercial products to the above noted client base. ¶4. Mrs. Sumartini explained that her connection to USML items comes from her relationship with Pratt and Whitney, who also happen to supply the engines for the Indonesian Air Force's F-16's. Pratt and Whitney has asked ATS to expand on her commercial relationship and to engage with the Indonesian Air Force to re-initiate a relationship with them so that Pratt and Whitney may gain maintenance contracts on the aging engines which Pratt and Whitney states have not received the advised maintenance in over 8 years. Pratt and Whitney is concerned that their own engines, poorly maintained as they are, are increasingly unsafe. Mrs. Sumartini advised that in this capacity, she has actually done very little other than to make inquires with the Air Force; she has sold no materials and as of yet, not signed maintenance agreement. Accordingly, she does not store any USML items, ¶5. ATS was established in 1979 by Mrs. Sumartini and now has approximately 20 employees. Mrs. Sumartini is an avid pilot herself and has also founded the Bali Flight School where all Garuda pilots now receive their training. ¶6. Econoff is unaware of any derogatory background information that exists on ATS. Econoff highlighted to Mrs. Sumartini the important position that she occupied as a licensed vendor of USML items and urged her to always comply with rules that regulated this special relationship, and in particular as it related to end-user documentation. Mrs. Sumartini stated that she understood completely and expressed her desire to be a willing and forward leaning partner in this arrangement. OSIUS