Indonesia to request offset in F-16 plane deal
Indonesia to request offset in F-16 plane deal
JAKARTA (JP): State-owned aircraft manufacturer PT IPTN is eying an offset for the government's purchase of nine F-16 war planes from the United States.
The company's president, B.J. Habibie, who is also state minister of research and technology, said here yesterday that the government is currently negotiating with the U.S. government for such an offset arrangement.
An offset is a trade arrangement whereby the buyer agrees to the purchase of goods on the condition that the seller accepts a certain part of the payment in goods, not money; in this case, aircraft parts.
"According to a Presidential decree, there must be an offset for any import of high-tech products," Habibie told journalists after speaking at a business meeting on the government's investment promotion for the country's eastern provinces.
When asked about the value of the offset, Habibie said: "usually we ask for 30 percent of the total value of the imported products."
The Air Force Chief of Staff Rear Marshal Sutria Tubagus disclosed last month that President Soeharto had approved the Air Force's plan to purchase nine F-16s, which would have initially been sold to Pakistan, is this important? from the United States.
Currently, the Air Force has 11 F-16s, six of which are in the Air Force's Blue Eagle aerial acrobatics team.
In addition to F-16s, the Air Force plans to import 24 Hawk warplanes from Britain.
Habibie said yesterday that IPTN had got offsets to produce a number of components for both the Hawks and the F-16s.
"It is very important to note, however, that IPTN was not established for such offsets," Habibie urged.
IPTN manufactures fixed-wing military and civil aircraft CN-235 and N-250, maritime patrol aircraft, NC-212, helicopters NBO-105, NBell-412 and NAS-332 Super Puma as well as a number of components for the F-16, Boeing 737, Boeing 767 and the Rapier Missile.
The company also provides integrated logistics support, engineering services, customer training, maintenance, overhaul and repair for various aircraft and engines. (rid)