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

VZCZCXYZ0004
RR RUEHWEB

DE RUEHJA #2149 2200825
ZNR UUUUU ZZH
R 080825Z AUG 07
FM AMEMBASSY JAKARTA
TO SECSTATE WASHDC 5702

UNCLAS JAKARTA 002149

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: PRE-LICENSE END-USE CHECK ON LICENSE
05-1010408, 05-1014219, 050032097

REF: SECSTATE 078900

1. (U) Summary: PT. Duta Bangun Persada (Bangun) confirmed on July
23 that the company is a registered supplier of the Indonesian Air
Force (IAF) and received orders from IAF to procure components
detailed in reftel. The company completed its shipment and sent the
ordered goods listed in license 05-1010408 and 05-1014219 directly
to the IAF through their principle in Singapore. However, Bangun is
still in the process of completing delivery of the remaining license
050032097. End Summary.

2. We contacted Duta Bangun Persada on July 23 to confirm shipment
of goods listed in reftel. Bangun's procurement officer Nancy
Hutagaol confirmed that the company received orders from Indonesian
Air Force (IAF) to procure spare parts for IAF's C-130 aircraft and
placed its orders to three different U.S. sellers mentioned in
reftel. Ms. Hutagaol said that those orders were shipped by air
from U.S. Sellers through Bangun's principals in Singapore
(UNISERVE-trading). Uniserve then delivered the ordered components
to the IAF appointed freight forwarder who delivered the order
directly to IAF's warehouse at Halim Air Force Base in South
Jakarta. The goods did not pass through Bangun's warehouse. Ms.
Hutagaol also claimed that licenses DTC Case: 05-1010408 and
05-1014219 are completed and already received by the IAF. However,
one shipment of voltage regulators, DTC Case: 050032097, is still at
UNISERVE-trading , which is located in 14A Poole Road (Tanjung
Katong), Singapore, waiting for further delivery to the IAF. Air
Way Bill for this shipment from U.S. seller L.J. Walch Co., Inc to
UNISERVE is DHL-90220804531.

3. We also contacted IAF Chief of Procurement Air First Marshal
(AFM) Sunaryo on July 24 to confirm the transaction. AFM Sunaryo
confirmed that he is familiar with Bangun, noting that the company
is indeed a registered IAF supplier. Sunaryo also confirmed that
his office received the manifold assy and indicator/anti skid box
detailed in license number 05-1010408 and 05-1014219 in reftel. The
goods were received in full quantity in April 2007, and his office
is awaiting the other three pieces of the voltage regulator. AFM
Sunaryo explained that all IAF procurement orders are received at
the Halim AFB Center of Material Supply (warehouse). They are then
distributed to IAF facilities requiring the goods.

HUME

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