IPTN plan over production unit in U.S. wins support

JAKARTA (JP): Senate minority leader Bob Dole (R) stands behind the IPTN plan to set up an aircraft production unit in the United States, and hopes he can create jobs for his home state of Kansas in the process, State Minister of Research and Technology B.J. Habibie says.

"Mr. Dole said that he hoped to see the project realized," said Habibie, who is also president of IPTN (PT Industri Pesawat Terbang Nusantara), to Indonesian newsmen after meeting the American politician on Capitol Hill, Washington D.C. Tuesday.

"Mr. Dole even recommended Kansas, his home-state, as the project site," Habibie said.

The minister announced in February that IPTN will set up a plant in the United States to manufacture and market the N-250, a commuter aircraft with a capacity of 70 passengers.

IPTN already operates a marketing office in Seattle for the promotion of the aircraft.

The ambitious move has caused some controversy among Indonesian business and finance analysts because IPTN has refused to publicly disclosed the amount of capital required to finance the project.

Habibie was also quoted as saying by Antara yesterday that the N-250 move will "enhance the nation's pride on the international scene."

Funding

The minister again declined to specify how much government money will be involved in the ambitious project.

He did explain that 85 percent of N-250's components will be produced in the United States and Europe.

The minister also stated that he hoped the project will be completed by 1997.

"Within the next twenty years, the global demand for this type of aircraft will reach 4,500 planes," Habibie added. "If we can just cover 10 percent of that demand, we will break even."

There are no clear indications how much a finished N-250 will sell for. Some analysts have said a likely price will be around US$13 million.

IPTN will face competition in the commuter air market from Britain and France, Habibie said.

The minister, who has already spent one week in the United States, also plans to visit six more states, including Kansas, Alabama, Utah, Arizona, Ohio and Oregon.

Habibie is scheduled to return to Indonesia later this month. (04)