Local people asked to finance jet project

JAKARTA (JP): Senior government officials in East Kalimantan and South Sulawesi have asked local residents to help finance the US$2 billion jet project of the state-owned aircraft manufacturer PT Industri Pesawat Terbang Nusantara (IPTN).

East Kalimantan Governor H.M. Ardans said in the province's capital city of Samarinda yesterday that local people, including civil servants, were also expected to buy shares in PT Dua Satu Tiga Puluh (DSTP), a company set up by the government in February to finance the construction of the 100-seater N-2130 jets.

DSTP was set up with initial paid-up capital of Rp 920 billion. This will eventually be increased to Rp 4.6 trillion.

"Residents, especially civil servants, should buy at least one of DSTP's shares. Buying two or more will be much more appreciated," Ardans was quoted by Antara as saying.

He said that DSTP's shares would be sold for Rp 25,000 each and that local people would be allowed to pay for the share purchase over four years.

Ardans, however, warned that people should not expect too much from their share purchases because they could only receive gains in the next four years.

According to Antara, the East Kalimantan chapter of the Indonesian Development Employee Association has bought a number of DSTP shares for Rp 50 million (US$21,222).

Syamsul Alam Bulu, mayor of Pare-pare, a port city in South Sulawesi, also made a similar appeal to local people to support the jet project.

The appeal was made in a recent special meeting with social leaders in the Pare-Pare mayoralty.

President Soeharto, in his capacity as DSTP's chairman, has recently called on regents and mayors in the country's 27 provinces to encourage people in their respective territories to take part in financing the jet project.

A number of state-owned companies have expressed their intention to buy DSTP stock. Twenty one state firms overseen by the Ministry of Industry and Trade have pledged to buy DSTP shares worth Rp 70 billion ($30 million).

Minister of Agriculture Sjarifudin Baharsjah said that state firms overseen by his office would contribute Rp 73 billion to the project. In addition, state firms overseen by the Ministry of Forestry would also spend $15.1 million on the jet project. (hen)