Leaping into high tech<\/p>\n
Indonesia, a nation with a per capita income of less than
\n$700, leaps into high technology today when President Soeharto,
\ncurrently chairman of the 18-member APEC and 108-country Non-
\nAligned Movement, unveils Indonesia's first domestically designed
\nand produced medium-range aircraft in coincidence with Heroes
\nDay.<\/p>\n
The rolling out ceremony at the state-owned PT Industri
\nPesawat Terbang Nusantara (IPTN) in Bandung, West Java, should be
\na joyful moment for Indonesia's Germany-educated aerospace
\nengineer, most prominent futurologist and tireless advocate of
\nhigh-value added products, B. J. Habibie.<\/p>\n
The completion of the prototype of the 70-seat N-250, billed
\nto be the world's first fly-by-wire, electronically-controlled
\npropeller-driven aircraft, should serve as a psychological boon
\nto the nation which will celebrate the 50th anniversary of its
\nindependence next August. A sense of national pride is sure to
\nemerge with this aircraft, especially in these days when leaders
\nof the economic powerhouses, Japan and the United States, are
\ngathering here for the APEC meeting.<\/p>\n
The critics and doubters, including development economists at
\nthe World Bank, may find it difficult to believe that a country,
\nwhich is not yet capable of fully manufacturing even a motorcycle
\nor a car, could make such a high-tech product as an aircraft,
\nwhose commercial production is still dominated by the highly
\ndeveloped nations. Critics also may view the production of the
\naircraft as an example of how a country could set priorities in
\nits technological development and resource allocations so
\nerroneously.<\/p>\n
The fact is that the prototype has been completed, the flying
\ntests will start next year and preparations for mass production
\nare fully underway.<\/p>\n
We are confident that Habibie, who is also the state minister
\nfor research and technology and chairman of 10 state companies,
\nas well as his engineers, fully realize that the rolling out of
\nthe prototype is simply the beginning of a monumental task --
\nhow to prevent the pride of the nation from turning into a
\nbillion-dollar bubble.<\/p>\n
Obviously, the first challenge is that the aircraft has yet to
\nobtain international certification from the United States'
\nFederal Aviation Administration to make it viable for commercial
\nproduction. Habibie seems to be fully aware of this requirement,
\nas can be seen from his thorough preparations for setting up a
\njoint venture in the U.S. to manufacture the N-250 plane.<\/p>\n
A manufacturing plant in the U.S. will simultaneously cope
\nwith two problems: the process of certification and the
\nsolidifying of a positive image of Indonesia. The kind of image
\npotential buyers have of a country is quite crucial for selling a
\nhigh-tech product on the international market. Right now,
\nIndonesia is still perceived mainly as a low-cost manufacturer of
\nlight industrial products.<\/p>\n
Even once it is certified, challenges will remain. The
\naircraft will have to compete with similar planes made by already
\nwell-known producers, such as British Aerospace, Aerospatiale and
\nNV Fokker. We are all aware that selling such high-tech products
\nas the N-250 plane with a price tag of more than $13.5 million a
\nunit requires much more than high quality and an airworthiness
\ncertificate.<\/p>\n
In fact, credit financing is often more crucial. Even such a
\ngiant aircraft manufacturer as Boeing Co. depends on the U.S.
\nEximbank export financing facility to push up its sales. We are
\nafraid, IPTN's marketing may be hindered if the company cannot
\noffer credit financing, especially as Habibie has estimated that
\nat least 260 of the N-250s will have to be sold to make the
\nbreak-even point.<\/p>\n
Therefore, if we all feel proud of the N-250, we should join
\nhands in promoting its marketing. The central bank, for example,
\nshould begin studying the possibility of extending export credit
\nfacilities to potential buyers. Private companies experienced in
\narranging counter-trade deals with other developing countries
\nshould include the aircraft in their trading activities.<\/p>\n
Such cooperation, we think, is necessary to ensure that the
\ngovernment's investment in the N-250 aircraft's development,
\nalready amounting to $650 million, can eventually be recouped,
\notherwise what is now a monument of our national pride could
\ndegenerate into a national embarrassment.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/leaping-into-high-tech-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}