IPTN seeks foreign partners and funding

IPTN seeks foreign partners and funding

SINGAPORE (AFP): Troubled Indonesian aircraft builder PT
Industri Pesawat Terbang Nusantara (IPTN) on Thursday expressed
determination to become a key Asian player as it seeks foreign
partners and funding.

IPTN President S. Paramajuda said foreigners could
theoretically buy 100 percent of the company, which is now
undergoing restructuring, but the firm prefers to remain 51
percent Indonesian-owned.

"We are very interested and hoping to attract foreign
partners," Paramajuda told AFP at the region's premier air show,
Asian Aerospace 2000.

IPTN, once controlled by Indonesia's ex-president B.J.
Habibie, had received harsh criticism for the controversial
funding it received from the government when Jakarta was gripped
by Asia's financial crisis.

In a press conference at the Singapore air show, Paramajuda
said IPTN was no longer directly under the ministry of finance
but under the holding company of state-owned PT Bahana Pengelola
Industri Strategis (BPIS).

He said IPTN was carrying a debt of about Rp 900 billion
(US$121.2 million) but was confident of seeing positive growth
rates from this year as the restructuring program goes into full
force.

Under the slogans "The New IPTN" and "IPTN 2000," Paramajuda
said IPTN was determined to become one of the leading aerospace
companies in Asia with a core competence in aircraft design,
development and manufacturing of small- to medium-sized civilian
and military transport aircraft.

He said IPTN was holding talks with several potential foreign
partners, whose main concern was the political instability in
Indonesia.

"We have the human resources which are capable to develop and
produce aircraft. We also have the facilities which match the
aircraft industry. So we are talking with the companies with
similar size like us," he said,

"The foreign companies, however, are more looking to see what
the government does in terms of (political) stability."

Paramajuda said he expected to see limited growth this year
due to the restructuring program, but it would pick up starting
2001.

"The growth rate is expected to be very limited, less than 10
percent because it had just started its restructuring program,"
he said.

"But in year 2001, our target is 20 to 30 percent growth."