Dua Satu Tiga Puluh offers shares to public

JAKARTA (JP): PT Dua Satu Tiga Puluh, a company established by President Soeharto to support the development of a prototype of the N-2130 passenger national jet aircraft, yesterday began the offering of the company's shares to the public.

DSTP President Saadillah Mursjid said the company was offering 774,398 bearer shares with a nominal value of Rp 2.3 million (US$958) each at Rp 2.4 million per share, and 400,000 common stocks.

He said that the 400,000 common stocks were split into 460 units each, with a nominal value of Rp 5,000, and sold at Rp 5,500.

Saadillah, who is also cabinet secretary, said the proceeds would be used to develop the $2-billion N-2130 jet. The aircraft's maiden flight is scheduled for 2003.

He said the public offering had been effective since March 4 upon approval of the Capital Market Supervisory Agency.

The shares would be offered directly to the public without being listed on the capital market.

Soeharto, in his private capacity, established DSTP in February last year with an equity capital of $400 million and 25 employees.

DSTP and the Bandung-based state-owned aircraft manufacturer PT Industri Pesawat Terbang Nusantara (IPTN) last October signed a financing agreement for the production of Indonesia's first passenger jet.

Under the agreement, DSTP would provide $2 billion for IPTN to design, develop and produce two types of N2130 passenger jets and obtain at least three international certifications for the aircraft, including from the U.S. and Japan.

The N-2130, which is the second airplane to be designed and engineered entirely in Indonesia, is scheduled to enter the market by 2005. It has a capacity of between 100 and 130 passengers and a maximum speed of 900 kilometers an hour.

Saadillah had earlier predicted that the company would be able to pay dividends after its 10th year of operation.

He said DSTP had to sell at least 326 jetliners to break even. However, he was optimistic this could be achieved by the year 2013. About half the sales are expected to be made to domestic airliners.

IPTN's President B.J. Habibie, also the minister of research and technology, had earlier estimated the world would need some 3,200 units of 100-to-130-seater passenger planes between the 2005 and 2025.

Indonesia's first locally designed airplane, the N-250 turboprop passenger plane, made its maiden flight in August 1995. (pwn)