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