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