Sat, 24 Apr 1999

IPTN to build 30 CN-235 airplanes by 2004

By M.M.I Ahyani

BANGKOK (JP): State-owned aircraft manufacturer PT Industri Pesawat Terbang Nusantara (IPTN) plans to build 30 CN-235 aircraft by the year 2004, the company's top executive said on Thursday.

IPTN president S. Paramajuda said the airplanes, worth US$360 million, were ordered by Malaysia, South Korea, United Arab Emirates and Brunei Darussalam.

"We are optimistic prospects will be brighter, especially when the Asian economy crisis is over," he said, after handing over two CN-235-220 aircraft ordered by Thailand's Ministry of Agriculture and Cooperatives .

Paramajuda said the CN-235 aircraft has no competitor in its class, because it is a light transport plane easy to operate and has low operational costs,

The two airplanes -- ordered by the Thai government in a $28.6 million barter deal with the Indonesian government -- departed from Bandung for Thailand's Airforce Base on Friday.

The handover was witnessed by Minister of Communications Giri Suseno Hadihardjono and Thailand's Minister of Agriculture and Cooperatives Pongphol Adireksarn.

The aircraft are designed for cloud-seeding, with a total capacity of four to five tons, but they can be transformed into passenger airplanes.

The airplanes, a modification of IPTN's CN-235 aircraft, are certified by the United States' Federal Aviation Administration, the European Joint Airworthiness Administration and Indonesia's Directorate General of Air Transportation, Paramajuda said.

In 1996, the Thai government agreed to delivery of the two aircraft in exchange for 110,000 tons of sticky rice.

"We are proud to finish the job amid the current economic crisis," Paramajuda said.

He acknowledged the company was facing financial difficulties due to the country's ailing banking sector.

IPTN was currently seeking financial support from international financial institutions, he said.

"We are negotiating with the Deutsche Bank, Credit Swiss and others."

Paramajuda said the lifting of the government subsidy, as required in an agreement with the International Monetary Fund (IMF), posed a blow to the company, as it must finance all projects from company funds.

He denied the company was a money-spending project, saying all money invested could be accounted for.

"All the money we received and spent can be observed from our results. For example, we finished and delivered this order (for Thailand's government) without government support.

"It would be fair if the IMF could see for themselves that the investment still exists," he said, adding that IMF Asia Pacific Director Hubert Neiss would visit IPTN's headquarters soon.