Dirgantara gets orders from int'l companies

Dirgantara gets orders from int'l companies

Rendi A. Witular, The Jakarta Post, Jakarta

Financial problems and labor problems confronting PT Dirgantara
Indonesia has not seemed to have dampened their customers'
interest, with the state-owned aircraft manufacturer securing new
deals worth millions of dollars.

Dirgantara acting president director Nuril Fuad said on Monday
the company had received orders, among others, from global
defense companies BAE System and European Aeronautic Defense and
Space Company (EADS).

"After undergoing a restructuring last year, following seven
years of financial turmoil, Dirgantara's business is improving
now with several orders coming in," said Nuril after meeting
President Susilo Bambang Yudhoyono.

Nuril said the new contracts secured thus far this year
included the production of a wing section for Airbus A380 worth
some Rp 500 billion (US$49 million) from BAE, a British defense
company.

BAE designs, manufactures and supports military aircraft,
surface ships, submarines, fighting vehicles, radar, avionics,
communications, electronics and guided weapons systems.

Other contracts also include an order from the German and
France-based EADS for the manufacturing of spare parts for the
Cassa C295 worth at least $4 million, and a cooperation in
setting up an assembly line for the construction of the Cassa
212-400.

Nuril said the company was also in the process of negotiation
with Thailand over country's plan to purchase eight CN-235
aircraft for maritime patrol.

However, the negotiation would face difficulties since they
were offering to pay for the aircraft with agricultural products
instead of cash under a countertrade deal, he added.

Dirgantara was set up by the government of former president
Soeharto in the 1970s as part of an ambitious project of the then
influential research and technology minister, B.J. Habibie, to
develop a hi-tech aircraft industry in the country.

However, following the financial crisis of the late 1990s, the
cash-strapped government could no longer support the ailing
aircraft manufacturer, and in 2003 the company's management
proposed to lay off thousands of its employees as part of a
restructuring program to prevent the company from going bankrupt.

Nuril said that currently the company was facing a massive
exodus of its remaining engineers -- who were spared from the lay
off program -- because of its inability to provide them with
higher wages and incentives.

"Some 1,162 of our engineers with master's and doctorates have
left the company this year to work for overseas aircraft
manufacturers like Boeing.

"President Susilo is very concerned with this problem and
pledged to help lure back the workers," he said, without
providing details.