Indonesian Political, Business & Finance News

Fruit of power and arrogance

Fruit of power and arrogance

Indonesia's aircraft manufacturing company, PT Dirgantara Indonesia, which has been the country's pride during the New Order era, is on the brink of bankruptcy.

All of the company's activities practically came to a halt last Saturday, after it suspended operations and sent home its 9,800 employees over the past six months.

Indeed, the company has been a long-time target of criticism because its sophistication and big capital are deemed too much for a country like Indonesia.

Dubbed the country's prodigal project, whose expenses are much bigger than its income, the company should have been closed earlier than expected.

However, all the criticisms were negated by the argument that PT Dirgantara Indonesia is a strategic industry, which gives the country an added value.

Above all, the aircraft manufacturing industry was nothing but the trust of then president, Soeharto, in his protege, B.J. Habibie.

No matter how high the cost was, it was Habibie's personal ambition, with support from and the protection of the highest authority, to pursue the project.

An inefficient industry with no market will go bankrupt in the long run.

It is an expensive lesson this nation has to live with. The authorities have to open their eyes and turn their ears to the criticism that no prodigal industry can survive with mere power and arrogance.

-- Media Indonesia, Jakarta

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