IPTN seeks aircraft parts from local firms

IPTN seeks aircraft parts from local firms

BANDUNG, West Java (JP): State-owned aircraft manufacturer PT
IPTN's plan to produce 63 N-250 aircraft per year in the 2000s
will require local industries to supply parts for the firm, the
company's production director said yesterday.

"We need local vendors as we still have to rely largely on
overseas parts suppliers," Eddi Susilo told a seminar on business
opportunities and the role of domestic industries in supporting
the national aircraft industry here.

Currently, IPTN has to subcontract the making of aircraft
parts to foreign companies.

The N-250 turbo-prop aircraft, with a 70-seat capacity, is
still being developed by IPTN. The prototype made a successful
maiden flight last August.

He said that IPTN has to rely on foreign companies because
local industries, despite having their technical capability, have
not obtained the international certificates necessary to supply
aircraft parts.

"Relying on foreign sources put us in a difficult position as
they often take a long time to deliver their products," he said.

IPTN's production line is often disturbed due to the late
delivery of parts. "Late delivery of parts will also shorten the
plane's life span," he noted.

"We, therefore, are in need of local vendors," he said, adding
that the types of aircraft components include springs, rubber
components, tires, chemicals, paints, and cables.

Speaking at the seminar, B.J. Habibie, the president of IPTN,
expressed his hope that small and medium-scale industries in
Indonesia will use the business opportunity and become vendors
for IPTN.

Habibie, who is also minister of research and technology, said
that each aircraft has an average of 60,000 components.

"There are about 5,000 small and medium scale vendors which
supply parts and components to Boeing. If we can develop even 10
percent of that number as vendors for IPTN that means the
creation of 500 suppliers," he said in reference to the giant
American aircraft manufacturer.

Habibie noted that IPTN has already set up a special team to
help local companies enter the component industry.

Asked by The Jakarta Post about the doubts of many businesses
regarding IPTN's ability to pay on time, Habibie said the claim
was groundless.

"Our cash flow is very good. But we have to admit that selling
aircraft is not like selling other products that can be sold in
cash. That's why IPTN pursues counter-trades with other
countries," he said.

"Just look at Fokker, Boeing, British Aerospace. They don't
sell their airplanes in cash," he said. (17/13)