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Cablegate: Blue Lantern Level 3 - Pre-License End-Use Check On

VZCZCXYZ0018
RR RUEHWEB

DE RUEHJA #1226 1210843
ZNR UUUUU ZZH
R 010843Z MAY 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 4557
RUCPDOC/USDOC WASHDC 1434
RUEKJCS/SECDEF WASHDC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS JAKARTA 001226

SIPDIS

SIPDIS

DEPT FOR EAP/MTS
DEPT FOR PM/DTCC/BLUE LANTERN COORDINATOR - TIM WATKINS

E.O. 12958: N/A
TAGS: KOMC ETTC ECON ID
SUBJECT: BLUE LANTERN LEVEL 3 - PRE-LICENSE END-USE CHECK ON
APLICATIONS 050021054

REF: STATE 025356

1. Summary: The Indonesian firm PT Multijaya Sparindo (Sparindo)
verified on April 3 its order of T-56 engine for C-130 aircrafts
detailed in reftel. Sparindo supplies the Indonesian Air Force
(IAF) with engines and aircraft spare parts. It also serves as a
local representative for U.S. aircraft parts supplier ILN
Technologies Inc and Kellstrom Industries. An IAF officer confirmed
on April 3 that Sparindo is indeed a registered supplier on the
IAF's supply list and the IAF intends to place an order for T-56
engines in June 2007. End summary.

2. We contacted Milany T. Luwena from Sparindo on April 3 to verify
order number 050021054. Luwena confirmed that her company requested
a "blanket export license order" for C-130 engines and spare-parts
for 2007. The blanket license, according to Luwena, is for an IAF
order for T-56 engines for C-130 aircraft expected in June. The $1
million license value is an estimated value for the company's
contract with IAF for 2007. Sparindo will order the T-56 engine
through their American seller ILN Technologies Inc, located at 21040
Osborne Street, Canoga Park, CA 91304.

3. PT Multijaya Sparindo was established in 1988 to supply aircraft
engines and spare-parts. The company is also a Dutch representative
agent for Fokker aircraft. Their clients are the Indonesian Air
Force, Indonesian National Police (for their Fokker-50 aircraft) and
other Indonesian commercial aviation such as Garuda and Merpati
airlines. In August 2006, According to Luwena, Sparindo received an
F-5 aircraft without engine and delivered it to IAF. At present,
Sparindo is also waiting for delivery of another engine for A-4
aircraft ordered from New Zealand for the IAF. In addition,
Sparindo has regular procurement contracts with American Kellstrom
Industries for C-130 spare parts and expects approximately 10
deliveries in 2007.

4. We also contacted Indonesian Air Force Chief of Aeronautics, Air
First Marshal Sunaryo, to verify this supplier. Sunaryo confirmed
that Sparindo is indeed a registered supplier on their list and has
been one since 1998. He said IAF plans to purchase engine and
spare-parts for their C-130 aircraft through Sparindo for the
2007/2008 budget timeframe. Sunaryo also confirmed that the first
order is estimated to start in June 2007.

HEFFERN

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