IPTN to replace all foreign engineers soon

BANDUNG, West Java (JP): State aircraft manufacturer IPTN will replace all of its foreign engineers in the next three months in an effort to cut company spending and boost its efficiency.

IPTN president Hari Laksono said local engineers would replace their foreign counterparts.

"We have trained some reliable local engineers to fill jobs left by foreign engineers in the next three months," Hari told journalists after the signing ceremony for an agreement between IPTN's customer support division and the Air Force on Thursday.

Hari said that IPTN had reduced the number of foreign engineers to 38 from 260. Most of them worked on the CN-235 and N-250 aircraft projects.

Foreign workers will be laid off as soon as possible but the company must honor the contracts, he said.

Most of IPTN's foreign engineers were hired on six-month contracts and their replacements would be brought in after the contracts expired.

Hari said that the reduction was part of IPTN's move to boost its efficiency since the government cut off IPTN's funding under an agreement with the International Monetary Fund (IMF).

The N-2130 passenger jet project, which is being developed by IPTN, was singled out by the IMF to no longer receive state assistance or funding in return for the US$43 billion loan package it organized for Indonesia.

Due to the termination of state funding for IPTN, Hari said the company had to make some adjustments in its operation to meet its tight budget.

The reduction of foreign workers was one of the measures but he declined to give further details on the adjustments.

Hari also said that IPTN would urge PT Dua Satu Tiga Puluh (DSTP) to review its policy on selling the company's shares to the public.

DSTP was established by President Soeharto to support the development of a prototype of the N-2130 passenger jet.

Hari said there have been a lot of complaints about the purchase of shares which could have a negative impact on IPTN although the company had only received orders to produce N-2130 and was not involved in DSTP's financial activities.

In October 1996, DSTP and IPTN signed a financing agreement for the production of Indonesia's first passenger jet.

DSTP shares have been offered directly to the public but not listed on the stock exchange. (gis/43)