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)