Dirgantara gets orders from int'l companies<\/p>\n
Rendi A. Witular, The Jakarta Post, Jakarta<\/p>\n
Financial problems and labor problems confronting PT Dirgantara
\nIndonesia has not seemed to have dampened their customers'
\ninterest, with the state-owned aircraft manufacturer securing new
\ndeals worth millions of dollars.<\/p>\n
Dirgantara acting president director Nuril Fuad said on Monday
\nthe company had received orders, among others, from global
\ndefense companies BAE System and European Aeronautic Defense and
\nSpace Company (EADS).<\/p>\n
\"After undergoing a restructuring last year, following seven
\nyears of financial turmoil, Dirgantara's business is improving
\nnow with several orders coming in,\" said Nuril after meeting
\nPresident Susilo Bambang Yudhoyono.<\/p>\n
Nuril said the new contracts secured thus far this year
\nincluded the production of a wing section for Airbus A380 worth
\nsome Rp 500 billion (US$49 million) from BAE, a British defense
\ncompany.<\/p>\n
BAE designs, manufactures and supports military aircraft,
\nsurface ships, submarines, fighting vehicles, radar, avionics,
\ncommunications, electronics and guided weapons systems.<\/p>\n
Other contracts also include an order from the German and
\nFrance-based EADS for the manufacturing of spare parts for the
\nCassa C295 worth at least $4 million, and a cooperation in
\nsetting up an assembly line for the construction of the Cassa
\n212-400.<\/p>\n
Nuril said the company was also in the process of negotiation
\nwith Thailand over country's plan to purchase eight CN-235
\naircraft for maritime patrol.<\/p>\n
However, the negotiation would face difficulties since they
\nwere offering to pay for the aircraft with agricultural products
\ninstead of cash under a countertrade deal, he added.<\/p>\n
Dirgantara was set up by the government of former president
\nSoeharto in the 1970s as part of an ambitious project of the then
\ninfluential research and technology minister, B.J. Habibie, to
\ndevelop a hi-tech aircraft industry in the country.<\/p>\n
However, following the financial crisis of the late 1990s, the
\ncash-strapped government could no longer support the ailing
\naircraft manufacturer, and in 2003 the company's management
\nproposed to lay off thousands of its employees as part of a
\nrestructuring program to prevent the company from going bankrupt.<\/p>\n
Nuril said that currently the company was facing a massive
\nexodus of its remaining engineers -- who were spared from the lay
\noff program -- because of its inability to provide them with
\nhigher wages and incentives.<\/p>\n
\"Some 1,162 of our engineers with master's and doctorates have
\nleft the company this year to work for overseas aircraft
\nmanufacturers like Boeing.<\/p>\n
\"President Susilo is very concerned with this problem and
\npledged to help lure back the workers,\" he said, without
\nproviding details.<\/p>",
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