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Cablegate: Blue Lantern Level 3: Post-Shipment End-Use Check On

VZCZCXYZ5771
RR RUEHWEB

DE RUEHJA #0435 0630945
ZNR UUUUU ZZH
R 030945Z MAR 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 8208
RUCPDOC/USDOC WASHDC 1513
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC

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

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