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)

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