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.