IPTN to sign US$200 million contract

IPTN to sign US$200 million contract

BANDUNG, West Java (JP): The state-owned aircraft maker PT
Industri Pesawat Terbang Nusantara (IPTN) will ink contracts
worth US$200 million at the Indonesia Air Show '96 next month for
the supply of 25 airplanes and helicopters.

IPTN's commercial director, Heru Santoso, told reporters here
on Wednesday that the deals would include the supply of three CN-
235 aircraft and six NBO-105 helicopters to the Ministry of
Defense and Security.

Three domestic airlines, Sempati Air, Merpati Nusantara and
Bouraq Airlines are set to buy six, five and five N-250 aircraft
respectively.

"So far we have sold 31 CN-235s, including the 15 aircraft
operated by Merpati Nusantara. We have also signed contracts for
the supply of 29 CN-235s which are now being built," Heru said.

He said that military versions of the CN-235 aircraft cost
$14.4 million each.

In addition to N-250s, CN-235s and NBO-105s, Bandung-based
IPTN, which is overseen by the German-trained State Minister of
Research and Technology B.J. Habibie, also produces C-212
passenger planes as well as Bell-412 and Superpuma helicopters.

The company will also develop a twin-jet 130-seater aircraft,
to be called N-2130, at a cost of about $2 billion, which is
scheduled to roll off production lines by 2002.

Heru, who is also chairman of the Indonesia Air Show 1996,
denied that his company had reached a break-even point. "Only the
NC-212 and the NBO-105 have reached the break-even point so far."

Habibie said last month that IPTN needed to sell only 40 more
N-250s to reach the break-even point of 259 aircraft. The 70-
seater aircraft, due for delivery at the end of 1997, costs about
$13 million.

Some of the orders for CN-235s and N-250s have been placed as
counter-trade arrangements, under which Indonesia will receive
certain industrial or agricultural goods such as cars or sticky
rice in exchange for the aircraft.

The government has poured Rp 1.6 trillion (US$683 million)
into IPTN since the company was established in 1976. (17/icn)