IPTN to launch Australian venture

JAKARTA (JP): President Soeharto, as patron of the Board for Strategic Industry Management (BPIS), has approved the setting up of a joint venture by Indonesia's state-owned aircraft maker, PT IPTN, and Australia.

"The joint venture will be called either IPTN Technology Australia (ITA) or Indonesia Technology in Australia and it will be established after the Idul Fitri holiday next February," State Minister of Research and Technology B.J. Habibie said over the weekend.

After meeting with Australian Deputy Prime Minister/Minister of Trade Tim Fischer, Habibie said that the joint venture company will be located in Australia.

He did not mention the capital structure of the joint venture nor the total investment for the industry.

But he noted that the establishment of the joint venture firm was aimed at improving Indonesia's aircraft engineering capability by using human resources in Australia.

Habibie said that this could not be construed as IPTN selling technology to Australia because the aircraft producer's Indonesian staff would control the main production unit in Indonesia.

Initially, the joint venture will operate as an engineering company, utilizing Australian companies to make airplane components, such as doors, wings and tails.

Asked about how the preparation of the joint venture establishment is going so far, Habibie said that IPTN has demonstrated to Australia its capability to produce the CN-235, N-250, and N-2130.

Habibie expressed optimism that the planned joint venture will benefit each country. "Australia will not only benefit from selling the products on its domestic market, but also from selling to Indonesia and other foreign countries," he said.

Meanwhile, Fischer, who was accompanied by Australian Minister of Industry, Science, Technology and Tourism John Moore, said that his government welcomes the establishment of the planned joint venture.

"Basically, Australia is widely open for Indonesian companies to invest in transportation, construction and hitech industries," Fischer said. (bnt)