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Cablegate: Blue Lantern; Verifying Bona Fides of Registered Broker

VZCZCXYZ0000
OO RUEHWEB

DE RUEHJA #2102 3620502
ZNR UUUUU ZZH
O 280502Z DEC 09
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4196
INFO RUEKJCS/SECDEF WASHDC
RHEFDIA/DIA WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC
RUETIAA/DIRNSA FORT GEORGE G MEADE MD
RUEAIIA/CIA WASHDC

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

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