Indonesia barters aircraft for Malaysian cars
JAKARTA (JP): Malaysia and Indonesia signed counter-trade deals here yesterday involving aircraft and automobiles worth around US$ 100 million.
Indonesia's Minister of Research and Technology B.J. Habibie and visiting Malaysian Minister of Defense Mohd. Najib Tun Razak signed a memorandum of understanding under which the Bandung- based IPTN aerospace company will export six CN-235 transport planes and in turn will buy 20 MD-3 light trainer planes and 2,500 cars from Malaysia.
Both officials saw the deal as the first step towards developing mutually beneficial cooperation in high technology sectors.
"We have to fight together to become leading nations among the other countries of the world. And this deal is a breakthrough for each country," Habibie said.
Under the agreement, Indonesia will deliver six CN-235s worth around US$100 million, including spare parts, to Malaysia, which, in turn, will export 20 MD-3s light trainer planes valued at $2.6 million and 2,500 Proton cars to Indonesia.
Habibie said that the CN-235 actually costs $13 million per unit, but the value of the six aircraft bought by Malaysia was higher due to the additional spare parts.
"Malaysia is considering buying 18 CN-235s but, only six aircraft were ordered in the first phase. On the other hand, Indonesia will also consider ordering more MD-3s if necessary," he said.
The memorandum of understanding was supplemented by four contracts of agreement signed by Indonesian and Malaysian parties involved in the implementation of the counter-trade deals.
One of them was a letter of intent signed by PT IPTN's vice president Hari Laksono and Malaysian Secretary-General of the Ministry of Defense Dato' Kamaruzzaman Syarif.
Present
PT Citra Lamtorogung Persada's chief executive, Mrs. Siti Hardiyanti Rukmana -- President Soeharto's eldest daughter -- and Malaysian Perusahaan Otomobil Nasional Bhd. (Proton) Managing Director Dat' Nadzi Salleh signed a contract for the import of 2,500 Proton automobiles of the Iswara Saga and Wira models.
Earlier in the morning, Minister Najib handed over a Proton limousine as a present from Prime Minister Mahathir Mohammad to President Soeharto.
Salleh said that in Malaysia the showroom price of the 1.3 liter Saga car with manual transmission is M$32,000 (US$11,850) and the price for the 1.6 liter Wira with automatic transmission is M$56,000.
The 2,500 Proton cars, of which 1,000 are earmarked as taxicabs and 1,500 for official use, will be imported in built up form.
"But we look forward to establishing a joint venture assembling plant with PT Citra Lamtorogung in Indonesia," Salleh added.
Proton cars are produced in Malaysia under a joint venture with Mitsubishi of Japan. In Indonesia Mitsubishi cars and trucks are assembled by the Krama Yudha group as the sole agent. (icn/vin)