Car, jet projects continue: Soeharto<\/p>\n
JAKARTA (JP): President Soeharto said yesterday that the
\nnational car project and the plan to develop Indonesia's own jet
\nplane would continue without state funding or assistance.<\/p>\n
As a matter of principle both projects must be continued,
\nMinister of Sports and Youth Affairs Hayono Isman quoted the
\nPresident as saying.<\/p>\n
The national car project and the N-2130 jet plane project were
\nsingled out by the International Monetary Fund (IMF) to no longer
\nreceive state assistance and funding in return for the US$43
\nbillion loan package it organized for Indonesia.<\/p>\n
Soeharto announced the decision after signing a letter of
\nintent to the IMF Wednesday, in which he pledged to undertake
\nsweeping economic reforms to lift Indonesia out of its
\npredicament.<\/p>\n
The national car project is handled by PT Timor Putra Nasional
\nwhich is controlled by Soeharto's youngest son Hutomo Mandala
\nPutra. The company has enjoyed massive tax breaks and access to
\nhuge credit to distribute Korean-made KIA cars under the
\nIndonesian brand of Timor before manufacturing them locally.<\/p>\n
The N-2130 plane is being developed by PT IPTN, the state
\naircraft manufacturer.<\/p>\n
All tax and credit privileges enjoyed by Timor Putra have now
\nbeen removed, and the government has cut off funding to IPTN.<\/p>\n
Hayono said after meeting with the head of state at his Jl.
\nCendana residence that the government had wanted to start a
\nnational car program for sometime, but none of the existing
\nlicensed car sole agents had the ability to carry it out until
\nTimor Putra Nasional came along two years ago.<\/p>\n
Indonesia must sustain its aircraft manufacturing capability
\nbecause of a growing domestic demand for planes, still the best
\nmode of transportation for an archipelagic state, he said.<\/p>\n
Soeharto, according to Hayono, did not see any problem with
\nthe termination of state funding to IPTN.<\/p>\n
\"If we can't do it, then we can work with foreign parties.
\nChina, Australia and Taiwan have expressed interest,\" he said,
\nhinting that a European plane consortium, the Airbus Industrie,
\nmay also possibly be interested in an arrangement with IPTN.<\/p>\n
Soeharto denied accusations that Indonesia had succumbed to
\nIMF pressures and that this was a form of colonialism.<\/p>\n
\"There were no pressures that could be interpreted as economic
\ncolonialism,\" Hayono said. It was a partnership agreement with
\nthe IMF, and there was no undue pressure, he added.<\/p>\n
Meanwhile, Soeharto's eldest daughter Siti Hardiyanti Rukmana
\ndisclosed yesterday that she and her siblings, whose businesses
\nwere affected by the IMF package, had been informed before the
\ndecision was made.<\/p>\n
Mbak Tutut, as she is popularly known, said that the family
\nmet a week before the Jan. 14 IMF announcement.<\/p>\n
\"Father asked whether we were prepared to have some of our
\nprojects postponed. We said then that we were ready. No one
\nrefused, or objected to the (IMF) agreement,\" she was quoted by
\nAntara as saying.<\/p>\n
\"We told him that we were ready for the sake of greater
\ninterests, that is the nation and the country.<\/p>\n
\"This condition will not go on forever. We will continue to
\nwork to put the economy back on its normal path,\" she said.<\/p>\n
Some of the IMF reform measures were targeted at the
\nbusinesses of Soeharto's children.<\/p>\n
Hardiyanti has several government contracts to build new toll
\nroads which have now been postponed. One of the 16 commercial
\nbanks closed in November in the first round of IMF reforms
\nbelonged to Bambang Trihatmodjo, Soeharto's second son.<\/p>\n
Hardiyanti was speaking after leading another drive for people
\nto exchange their dollars for rupiah or to donate their gold and
\njewelry to help the government cope with the crisis.<\/p>\n
She took executives from her Citra business group to donate
\ntheir gold to a counter of Perum Pegadaian, the state-owned
\npawnshop company, at Bank Indonesia (central bank).<\/p>\n
Hardiyanti donated two kilograms of jewelry and gold, Antara
\nsaid. A total of 9.2 kg of gold was collected in yesterday's
\ncampaign which also saw veteran singer Titiek Puspa and actresses
\nMarisa Haqua and Dortje taking part.<\/p>\n
Meanwhile, State Minister of Population Haryono Suyono said
\nthe government would introduce a credit scheme with an interest
\nrate of 12 percent to help people in poor villages.<\/p>\n
Subsidized loans of up to Rp 50 million would be made
\navailable to small companies and cooperatives, and up to Rp 2
\nmillion to individuals, Haryono said after a meeting with
\nSoeharto.<\/p>\n
The funds will be channeled through state-owned banks BRI and
\nBNI. (emb\/prb)<\/p>",
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