Investors sought to fund prototype plane
BANDUNG (JP): Financially strapped PT Industri Pesawat Terbang Nusantara (IPTN), the state aircraft manufacturer, is currently seeking new investors to help finance the certification of its prototype N-250 turboprop airplane.
The company's technology director, Agung Nugroho, said here on Thursday that IPTN was actively seeking foreign investors to help it finance the certification process, which is estimated to cost up to US$100 million.
"The response so far is quite good. Several foreign investors are very keen to become new investors. But I cannot give the details now as their offers are still being studied," he said.
Agung said the N-250 prototype, the first plane wholly designed by Indonesians, is currently undergoing certification from the Indonesian Certification and Airworthiness Office, the Joint Airworthiness Authority in Europe and the United States' Federal Aviation Authority.
The prototype has completed 800 flight hours of the targeted 2,000 flight hours in tests for its certification, he said.
"Usually it takes one year to complete 1,000 flight hours," he added.
Agung said the N-250 aircraft could enter the commercial market once its certification process is completed successfully.
"The flight testing needs huge funds because we need to buy fuel, spare parts and other things. As part of the process, the aircraft's spare parts have to be reserved from special vendors," he said.
IPTN, the brainchild of President B.J Habibie, who served as corporation president until March last year, has been deprived of further government financial support since last year at the behest of the International Monetary Fund (IMF).
Agung admitted that the company was facing financing difficulties in implementing several of its projects following the cut in government funding.
"We have to refocus our mission, for example, by emphasizing the marketing of the CN-235 aircraft, especially its military version, which has been considered quite sophisticated in its class."
IPTN has also diversified its business by producing high-tech equipment other than aircraft and manufacturing defense devices for the government, he said.
The company is also "leasing" its expert staff to other aircraft makers, Agung added.
"At present there are around 20 of IPTN's aircraft specialists working with Canadian aircraft maker Downier for its Downier 728 aircraft development project. Several others were hired by the U.S Boeing for its model-structure test project," he said.
IPTN's technology division, which is chaired by Agung, is currently developing the telemetri tracking system, usually used in flight tests, to be applied to air and sea transportation traffic.
"We are currently studying the possibility of adopting the system in controlling ship traffic in ports. I hope there will be some parties interested in this project," Agung said.(43/gis)