IPTN gets interest-free loan from forestry funds

JAKARTA (JP): Forestry minister Djamaloedin Soeryohadikoesoemo confirmed here yesterday that IPTN, the state-owned aircraft manufacturer, will receive Rp 400 billion (US$180 million) in an interest-free loan from his office to support the manufacture of N-250 aircraft.

"The loan will be taken from interest on reforestation funds held in Bank Indonesia and state banks," he said during a hearing with Commission IV of the House of Representatives (DPR).

Djamaloedin said the interest-free loan, which is made under a presidential decree, will be disbursed over 10 months beginning last month.

He, however, refused to specify terms of the loan or its repayment period. "The loan will be repaid after IPTN is able to produce and sell its airplanes," he told the House commission, which is in charge of forestry and agriculture.

The reforestation funds collected by the forestry ministry from concessionaires over the last five years have totaled around Rp 3.04 trillion (US$1.44 billion). All of the money has been placed in time deposits in several state banks and in commercial papers issued by Bank Indonesia (the central bank).

"The loan will be given in phases so that the gradual disbursement of the loan will not affect the operation of those banks," he said.

The minister said that most of the reforestation funds have been used to support reforestation programs as well as establish timber estates and that the total balance was Rp 825.89 billion at the end of the fifth Five Year Development Plan (Repelita V) in March of this year.

He estimated that the reforestation funds will reach some Rp 3.7 trillion in the next five years.

IPTN plans to launch a prototype of its specially-designed aircraft, the N-250, in the presence of 15 Asia-Pacific heads of the government in November.

IPTN executives said earlier that the company expects to sell 700 N-250s within 20 years, of which 230 would be sold domestically.

IPTN, headed by State Minister for Research and Technology B.J. Habibie, has so far recorded 157 domestic and overseas orders for the aircraft.

The company plans to establish production facilities in the United States. (hen)