Bimantara enters air navigation business
Bimantara enters air navigation business
JAKARTA (JP): Bimantara Group, through its subsidiary PT Elektrindo Nusantara, and state-owned PT LEN signed a cooperation agreement yesterday with an American company for the manufacturing and marketing of airport navigation equipment.
Under the agreement, signed here in the presence of Minister of Transportation Haryanto Dhanutirto and U.S. Secretary of Transportation Federico Pena, Airport System International Inc. of the United States will provide the technology, LEN will handle the manufacturing activities and Elektrindo will do the marketing and distribution.
LEN is an electronics company overseen by the Agency for the Management of Strategic Industries, which is chaired by State Minister of Research and Technology B.J. Habibie.
LEN president E. Februanus said that the three companies will soon prepare the establishment of a joint venture which will start operation late next year.
The planned joint venture will manufacture radio navigation and landing aids as well as runway signs for airports, he said.
Elektrindo president Harry Kuntoro said the investment for the planned join venture and its ownership will be discussed in the near future.
"Just for an illustration, a navigation system project for one airport needs US$50 million," he said.
He said that Elektrindo is currently cooperating with Hughes of the United States in preparation of air traffic control automation for the 1996 Air Show at the Soekarno-Hatta airport in Cengkareng, west of here.
Minister Haryanto said that for the time being, Indonesia will still have to import airport lighting systems from France.
Indonesia currently operates more than 70 airports, 23 of which have been declared as international airports and tourist gateways.
The government estimates that a total of $1.5 billion will be invested to develop or expand airports all over the country, most which have poor infrastructures and facilities.
When asked about the air agreement between Indonesia and the United States, Haryanto said that the two countries agreed to increase aviation services gradually.
"We want to increase air services equally. If we allow three airlines from the United States to fly to Indonesia, the United States should as well license three Indonesian air carriers serving that country," he said.
He said Pena agreed in principal to the gradual increase in air services between the two countries.
"Top officials from the two countries' directorates of air aviation will later discuss the matter," he said. "The negotiation may last until 1997 or 1998 as the air agreement with the United States will also involve other countries, such as Hong Kong or Taiwan."
Indonesia in 1998 will allow its five scheduled air carriers to fly to international destinations in Europe, Africa, Latin America and the Asia-Pacific region. (icn)
Photo -- Page 9