Batam to have $10m aircraft facility<\/p>\n
By I. Christianto<\/p>\n
BATAM ISLAND, Riau (JP): The island of Batam, which has been
\ndeveloped as an industrial and tourism center since the early
\n1970's, will soon have an aircraft maintenance facility jointly
\nowned by Indonesian and Singaporean parties.<\/p>\n
The agreement for the US$10 million facility, called PT Batam
\nAircraft Maintenance, was signed here yesterday.<\/p>\n
The facility will be the second largest after the one operated
\nby Garuda Indonesia at the compound of the Soekarno-Hatta
\nInternational Airport in Jakarta.<\/p>\n
The participants were four Indonesian companies and one
\nSingapore company comprising the National Aircraft Manufacturer
\nIndustri Pesawat Terbang Nusantara (IPTN) which will have 25
\npercent ownership; the foundation of Adi Upaya of the Air Force
\n(Yasau) which will have 20 percent ownership; and Sempati Air,
\none subsidiary of the Humpuss Group owned by President Soeharto's
\nyoungest son Hutomo Mandala Putra, which will have 20 percent
\nownership.<\/p>\n
The other parties includes PT Saltim Mitra Corporation and
\nSingapore Aerospace (SAe), an affiliate of the Singapore
\nTechnologies Holdings. Saltim and SAe will hold 10 percent and 25
\npercent ownership in the joint venture, respectively.<\/p>\n
PT Saltime Mitra Corporation is a joint venture between the
\nSalim Group, the country's largest business owned by Indonesia's
\nrichest man Liem Sioe Liong, and Timsco Group owned by Syatim
\nAburrachman (Timmi) Habibie.<\/p>\n
The agreement, signed by IPTN's director of aircraft services
\nMangatur Pardede, Sempati's president Hasan M. Soedjono, Saltim's
\npresident S.A. Habibie, Indonesian Air Force's deputy chief of
\nstaff Sugiarto who represented Yasau, and SAe's president Quek
\nPoh Huat, hopes to anticipate the increasing necessity for better
\naircraft maintenance centers in Asia.<\/p>\n
Collaboration<\/p>\n
State Minister of Research and Technology B.J. Habibie said
\nthat the mega-project will be a collaboration to share and
\ncombine the technical expertise, management experience, human
\nresources and marketing networks of the five parties.<\/p>\n
Meanwhile, Pardede said: "IPTN, the all-Indonesian designed
\naircraft manufacturer and SAe will provide management and
\ntechnical assistance for the joint venture, while Yasau will
\nconstruct the project's infrastructure facilities."<\/p>\n
He added that the project's construction will start soon and
\nwill be completed within 18 months, as the facility is planned to
\nstart operations in the middle of 1996.<\/p>\n
He said that the idea was first prepared in late 1991 but
\ninitially faced serious obstacles as all the parties involved
\nwere big companies.<\/p>\n
He said that the facility will handle the full range of
\naircraft maintenance services, focusing on airframe overhaul for
\nnarrow-body and commuter airplanes. Pardede added that they will
\nnot compete with Garuda Maintenance Facility in Jakarta.<\/p>\n
Meanwhile, Quek said that SAe will also provide a
\ncomprehensive range of services for both military and civilian
\naircraft, including maintenance, modification and upgrade
\nservices to the customers on a global base.<\/p>\n
The 415 square kilometer island of Batam, located some 20
\nkilometers Southeast of Singapore, will actually have an
\ninternational airport with 4,000-meter runway.<\/p>\n
Habibie said that, as the island will be very busy with
\nindustrial activities, the airport here should be able to handle
\njumbo jets serving both international scheduled, chartered
\npassenger and cargo flights.<\/p>",
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"sponsor": "Okusi Associates",
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