IPTN will survive state funding cuts<\/p>\n
JAKARTA (JP): State aircraft manufacturer PT IPTN says it will
\nsurvive a government decision to cut its funding as part of an
\neconomic reform package.<\/p>\n
PT IPTN President B.J. Habibie said the company's activities
\nwould be unaffected because it was already self-sufficient.<\/p>\n
\"It's no problem really,\" Habibie, who is also State Minister
\nof Research and Technology, was quoted by Antara as saying
\nSaturday.<\/p>\n
He maintained that the company was self-sufficient through the
\nsale of and orders for one of its main products, the 40-seat CN-
\n235 commuter aircraft.<\/p>\n
The Bandung-based company is also testing a 70-seat N-250
\nturboprop and has plans to spend US$2 billion to develop a 130-
\nseat N-2130 passenger jet.<\/p>\n
As part of a newly negotiated economic reform package, to be
\nimplemented under the supervision of the International Monetary
\nFund -- which has mobilized an about $40 billion rescue package
\nfor Indonesia --, the government has not only cut IPTN funding
\nbut also decided that IPTN can no longer raise loans
\ndomestically.<\/p>\n
This means that the firm's N-2130 jet project would have to be
\nentirely foreign funded.<\/p>\n
Habibie said the lower rupiah exchange rate against the
\ndollar, quoted in New York at 8,300\/8,800 Saturday, would help
\naircraft sales which have recently been arranged through small
\ncounter-trade deals.<\/p>\n
\"The (CN-235) aircraft began selling when the rupiah rate of
\nexchange against the U.S. dollar was about 2,500 rupiah. Now the
\nvalue of the dollar is much higher, that will be a source of
\nfunds, won't it?.<\/p>\n
\"The proceeds from the sales of CN-235 are enough to pay for
\nthe operations of IPTN,\" he said.<\/p>\n
Habibie said the government's budget allocation to IPTN was
\nsmaller than that to the National Institute of Sciences or Agency
\nfor the Assessment and Application of Technology, two official
\nresearch institutes.<\/p>\n
According to IPTN spokesman M.T. Satoto who spoke to reporters
\nin Bandung on Friday, IPTN has sold more than 400 of its products
\nsince it was established in 1975, including 150 CN-235s.<\/p>\n
Satoto said the company planned to \"restructure\" its
\npersonnel. This would include reducing the number of foreign
\ntechnical assistants on some programs.<\/p>\n
Last year, the company planned to transfer 4,000 employees to
\ndivisions that will be established as subsidiaries.<\/p>\n
\"We are still looking at how many employees we actually need,\"
\nSatoto said. (43\/aan)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/iptn-will-survive-state-funding-cuts-1447893297",
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