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

VZCZCXYZ0011
RR RUEHWEB

DE RUEHJA #0522 0740706
ZNR UUUUU ZZH
R 140706Z MAR 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC 8329
RUCPDOC/USDOC WASHDC 1515
RUEKJCS/SECDEF WASHINGTON DC
RUEPINS/HQ BICE INTEL WASHINGTON DC

UNCLAS JAKARTA 000522

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: RESULT POST-SHIPMENT END-USE CHECK ON
LICENSES 05055257 AND 050028272

REF: SECSTATE 008856

1. Summary. The Indonesian Air Force confirmed receipt of spare
parts listed in reftel and that they are being used for the purpose
stated on the license. We conducted a site visit to Indonesian firm
PT Wira Kreasi Persada (Wira) and it appears to be a reliable
recipient of United States Munitions List (USML) items. End
summary.

2. We visited PT Wira Kreasi Persada on March 5, 2008 and met the
President Director Budiman Prawira and Operation Manager Bustaman
Prawira to verify the order of items listed in reftel. Bustaman
confirmed that his company received the order in 2007 for nuts,
bolts, screws and other parts from the IAF for their C-130 Hercules
aircraft. Bustaman provided us with contract documentation between
IAF and Wira signed by both parties. Bustaman also noted that his
company was aware of restrictions on USML articles, particularly
those that are re-exported. Bustaman said that the items were
delivered to IAF in October 2007.

3. PT Wira Kreasi Persada was established in 1998 as a trading
operation. Its core business is supplying fuel filters to
state-owned oil company PERTAMINA. The company started supplying
aircraft spare-parts to the IAF four years ago. It also acts as a
sales representative for several international suppliers, including
US-based Arrow Dynamics and Singaporean Inovo Tech and Control
Supply. Wira has 11 employees located at a four story office
building in central Jakarta.

4. Bustaman said that orders from IAF are typically delivered
directly to the IAF warehouse. IAF uses its own expediter for
shipment of items from the airport to their warehouse. However, in
some cases the shipments are stored in a room at Wira's office for
no more than one day before Wira delivers the items. Bustaman said
his company only supplies small spare parts and the office is
guarded by two employees who live on the top floor of the office
building, a common practice in Indonesia.

5. We also contacted IAF Air Vice Marshal Sunaryo on February 4,
2008 and confirmed that IAF received both orders detailed in reftel.
He verified that Wira is a registered company on the IAF supplier
list.

HUME

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