Give IPTN, PAL time to make profits: Habibie<\/p>\n
JAKARTA (JP): Minister of Research and Technology B.J. Habibie
\nsaid yesterday that the strategic industries under his control
\nshould be given two to three years to prove that they can bring
\nhome profits, provided export credits are granted for the sales
\nof their products.<\/p>\n
\"Give our strategic industries conditions like those enjoyed
\nby our competitors. And within two to three years, we will see if
\nthe industries are profitable or not,\" Habibie told reporters
\nduring a break of a hearing with the House of Representatives'
\nTechnology and Development Planning Commission.<\/p>\n
Habibie said the Bandung-based aircraft manufacturer, PT IPTN,
\nand its sister ship-building company, PT PAL in Surabaya, were
\nstill suffering financial losses because of the absence of export
\ncredits. He did not disclose how much the companies' losses were.<\/p>\n
The two companies are under the control of the Agency for the
\nManagement of Strategic Industries (BPIS), which is chaired by
\nHabibie.<\/p>\n
\"If we have to sell all our products on cash-and-carry terms,
\nhow can we compete with foreign or domestic producers which offer
\ncredit facilities for buyers?,\" Habibie asked.<\/p>\n
Habibie, IPTN president, said the absence of export credit
\nfacilities for buyers has made it difficult for IPTN to compete
\nwith foreign producers.<\/p>\n
He said that it was IPTN which opened the Turkish market and
\nwon a contract to supply it with 52 CN-235 aircraft, a commuter
\nairplane developed jointly by IPTN and CASA of Spain.<\/p>\n
\"However, we will gain only 30 percent of the total sales
\nvalue of the aircraft, with the other 70 percent going to CASA,
\nwhich offered export credits to buyers,\" Habibie said.<\/p>\n
He said President Soeharto had instructed him to hold a
\nmeeting with the Governor of Bank Indonesia (the central bank),
\nthe Minister of Finance and IPTN executives to decide upon
\nmechanisms for providing credit for the export of aircraft.<\/p>\n
Debt<\/p>\n
He said that two other strategic companies under BPIS were
\nalso suffering financial losses because of their debt burdens.
\nThey are the engineering firms PT Bosma Bisma Indra and PT
\nBharata, both based in East Java. Here again, the minister
\ndecline to reveal the size of the losses.<\/p>\n
Export credits will also be sought to support the sale of
\ngoods produced by the other strategic companies under BPIS,
\nHabibie said.<\/p>\n
BPIS also overseas six other strategic industry companies:
\nelectronics manufacturer, PT LEN; arms manufacturer, PT Pindad;
\nrailway equipment producer, PT Inka; telecommunications equipment
\nmanufacturer, PT Inti; steel producer, PT Krakatau Steel; and
\nexplosives manufacturer, PT Dahana.<\/p>\n
When asked what he would do if the national budget could not
\nsupport the granting of export credits, Habibie replied: \"Just
\ndissolve all the strategic industry companies which provide
\nemployment for 37,000 well-educated people.\" (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/give-iptn-pal-time-to-make-profits-habibie-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}