IPTN wants to sell planes to Australia

JAKARTA (JP): President of the state-owned PT Industri Pesawat Terbang Nusantara (IPTN), B.J. Habibie, said yesterday that his company is willing to offer an offset arrangement to win a US$500 million tender from the Royal Australian Air Force (RAAF).

"The RAAF is currently in the process of replacing 18 of its transportation planes. They can be replaced by either Spain's CN 235-200 or IPTN's CN 235-330," Habibie, who is also the State Minister for Research and Technology, told reporters prior to a meeting with President Soeharto at Merdeka Palace yesterday.

Habibie returned last Wednesday from a 10-day visit to Australia.

He said that IPTN will be prepared to sell turbo-propelled CN 235s to Australia under an offset arrangement, Antara reported.

However, Habibie did not give any details regarding the offset arrangement.

The minister said that the arrangement might lead to the possibility of IPTN procuring some Australian-made components in return for selling its aircraft.

Habibie also said that IPTN is prepared to redesign the aircraft in order to meet Australia's aviation standards.

According to Habibie, the tender will be finalized in 1998. (hdj)