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)