Bimantara enters air navigation business<\/p>\n
JAKARTA (JP): Bimantara Group, through its subsidiary PT
\nElektrindo Nusantara, and state-owned PT LEN signed a cooperation
\nagreement yesterday with an American company for the
\nmanufacturing and marketing of airport navigation equipment.<\/p>\n
Under the agreement, signed here in the presence of Minister
\nof Transportation Haryanto Dhanutirto and U.S. Secretary of
\nTransportation Federico Pena, Airport System International Inc.
\nof the United States will provide the technology, LEN will handle
\nthe manufacturing activities and Elektrindo will do the marketing
\nand distribution.<\/p>\n
LEN is an electronics company overseen by the Agency for the
\nManagement of Strategic Industries, which is chaired by State
\nMinister of Research and Technology B.J. Habibie.<\/p>\n
LEN president E. Februanus said that the three companies will
\nsoon prepare the establishment of a joint venture which will
\nstart operation late next year.<\/p>\n
The planned joint venture will manufacture radio navigation
\nand landing aids as well as runway signs for airports, he said.<\/p>\n
Elektrindo president Harry Kuntoro said the investment for the
\nplanned join venture and its ownership will be discussed in the
\nnear future.<\/p>\n
"Just for an illustration, a navigation system project for one
\nairport needs US$50 million," he said.<\/p>\n
He said that Elektrindo is currently cooperating with Hughes
\nof the United States in preparation of air traffic control
\nautomation for the 1996 Air Show at the Soekarno-Hatta airport in
\nCengkareng, west of here.<\/p>\n
Minister Haryanto said that for the time being, Indonesia will
\nstill have to import airport lighting systems from France.<\/p>\n
Indonesia currently operates more than 70 airports, 23 of
\nwhich have been declared as international airports and tourist
\ngateways.<\/p>\n
The government estimates that a total of $1.5 billion will be
\ninvested to develop or expand airports all over the country, most
\nwhich have poor infrastructures and facilities.<\/p>\n
When asked about the air agreement between Indonesia and the
\nUnited States, Haryanto said that the two countries agreed to
\nincrease aviation services gradually.<\/p>\n
"We want to increase air services equally. If we allow three
\nairlines from the United States to fly to Indonesia, the United
\nStates should as well license three Indonesian air carriers
\nserving that country," he said.<\/p>\n
He said Pena agreed in principal to the gradual increase in
\nair services between the two countries.<\/p>\n
"Top officials from the two countries' directorates of air
\naviation will later discuss the matter," he said. "The
\nnegotiation may last until 1997 or 1998 as the air agreement with
\nthe United States will also involve other countries, such as Hong
\nKong or Taiwan."<\/p>\n
Indonesia in 1998 will allow its five scheduled air carriers
\nto fly to international destinations in Europe, Africa, Latin
\nAmerica and the Asia-Pacific region. (icn)<\/p>\n
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