Legislators hail funding for jet plane project

Legislators hail funding for jet plane project

JAKARTA (JP): Members of the House of Representatives praised
President Soeharto yesterday for initiating a novel way of
raising funds to finance the development of a Rp 2 billion jet
plane project without tapping the government's resources.

B.N. Marbun, Moestahid Astari and Hamzah Haz said they all
supported the President's move to finance the project by means of
establishing a company which will raise the money from the
public.

The company PT Dua Satu Tiga Puluh (DSTP) was formally
incorporated last week and its formation was publicly announced
on Monday with President Soeharto, in his personal capacity, as
its chief commissioner.

It means Two One Thirty and is named after the N-2130, the
100-seater jet which is now being developed by PT IPTN, the
state-owned aircraft manufacturer headed by State Minister of
Research and Technology B.J. Habibie.

Although he said he fully supported the financing plan, Marbun
of the Indonesian Democratic Party, questioned the legal basis
for the President to head a private company.

"There is no law that allows the head of state to head a
private company. If he leads a state-owned firm, it would be all
right," he told The Jakarta Post.

But he quickly added that the idea is good, legitimate and
worthy of praise because the company is raising the money from
private sources.

"Let's hope the state does not have to set aside any funds
from its budget for the project," he said.

Minister/Cabinet Secretary Saadilah Mursjid, who is the
president director of PT DSTP, said on Monday that the company
hopes to issue shares to the public to raise the necessary funds.

More than 20 tycoons have already pledged to buy some of the
shares in PT DSPT; the plane is expected to enter the world
market in the 2006.

Priority

Moestahid, the chairman of the dominant Golkar faction in the
House, told reporters on a separate occasion that the development
of high technology industries has become a priority for
Indonesia.

"We have started developing high technology planes and we
cannot stop here. The nation has put its reputation at stake in
this high cost project," he said.

Moestahid said the government should ensure that no one
should be coerced into buying the shares simply to meet the $2
billion target.

Hamzah Haz, chairman the United Development Party (PPP)
faction in the House, said the public should support the scheme
because no state budget will be involved in the project.

"Money from the state coffers can be used for something else.
If the project succeeds, state-owned companies can buy IPTN
aircraft, thereby saving foreign exchange," he said.

According to Hamzah, the jet project will be an important step
for Indonesia to reduce its dependence on foreign countries for
high technology industries.

"We should not be dictated to by foreigners forever," he said.
(pan)