IPTN profits from UAE deal despite fine
IPTN profits from UAE deal despite fine
JAKARTA (JP): The state-owned aerospace company PT IPTN profited from the recent sales of seven CN 235-100 aircraft to the United Arab Emirates (UAE) despite an undisclosed fine imposed by the buyer for the late delivery of the airplanes.
"The sales of the seven aircraft gave a net profit of around four to five percent," Minister of Finance Mar'ie Muhammad told a recent hearing of the Budgetary Commission of the House of Representatives (DPR) last week.
The question on IPTN's deal with the UAE was raised during the hearing but Mar'ie gave no detailed explanation on the issue.
The state-owned aerospace industry in Bandung sold the CN 235- 100 airplanes to the UAE's armed forces for US$104.03 million; partly under a counter-trade arrangement that required IPTN to buy four C 212-200s and five DMC-5D Buffalo airplanes from the UAE, and partly for cash.
The C 212-200 and DMS-5D Bufallo airplanes were priced at $4.4 million and $25,030 each respectively. IPTN expected a profit margin of around $2.78 million from the deal.
During the hearing, the House members questioned whether IPTN could realize the projected profits from the deal, given the fact that the UAE had imposed an undisclosed fine due to the late delivery of the seven CN 235-100 aircraft.
The seven aircraft were part of the 28 CN 235s delivered by IPTN last December. Fifteen went to the state-owned Merpati Nusantara Airlines and another six to Indonesia's Armed Forces.
Mar'ie said that the total transaction value booked by IPTN from the sales of its aircraft and their components and other contracts had so far reached around $541.8 million.
The state-owned company is set to deliver another six CN 235s to the Malaysian Armed Forces and 16 more to Merpati.
IPTN, which produces the CN 235 airplanes in cooperation with Spain's CASA aircraft industry, successfully launched its first fully-designed aircraft, the N-250 turboprop airplane, in Bandung last August.
IPTN is currently developing a 130-seat passenger jetliner called N-2130, which is estimated to cost over $2 billion.(hen)