DI signs $80m deal with British firm

DI signs $80m deal with British firm

JAKARTA: Indonesia's state aircraft manufacturer said on
Thursday it had secured an US$80 million contract from prominent
European defense firm British Aerospace Systems for the
production of Airbus components.

Under the contract signed in Jakarta late on Wednesday,
Dirgantara Indonesia will produce components for the Airbus A320
and A340, company spokesman Rohendi told AFP.

The substantial contract will be seen as a vote of confidence
in Indonesia's manufacturing sector at a time when the country is
trying to curb corruption and red tape to attract foreign
investment.

Under the deal, Dirgantara will produce three aircraft
components to be delivered over a period of five years.

Dirgantara, which was founded under former president Soeharto
before he stood down in 1998 amid economic turmoil, is already
working on a 10-year contract for Airbus A380 components awarded
in 2003. -- AFP