Malaysia, RI sign car, military aircraft agreement
Malaysia, RI sign car, military aircraft agreement
KUALA LUMPUR (Reuter): Malaysia and Indonesia yesterday signed a military aircraft and car deal which they said could lead to formation of a Southeast Asian consortium to manufacture commercial aircraft.
"I now dream of the 21st century when a commercial aircraft will be made by a consortium comprising Indonesia, Malaysia, Singapore or other Southeast Asian countries," Indonesian State Minister for Research and Technology B.J. Habibie said.
Habibie and Malaysia's Defense Minister Najib Abdul Razak signed a US$224 million deal which involves Indonesia buying 20 Malaysian-made trainer aircraft and 1,500 Malaysian Proton cars.
In return Malaysia will buy six Indonesian-made CN-235 military transport aircraft.
Indonesia is selling the CN-235s, made by state-owned IPTN (Industri Pesawat Terbang Nusantara) for $112 million and paying Malaysia the same amount for the MD3-160s, made by state-owned SME Aviation, the Proton cars and aircraft maintenance services.
"Both countries are paying cash and at the end, the money will be squared," Najib told reporters after the signing ceremony.
Malaysia's air force will use the Indonesian aircraft for troop transport while Indonesia is using the Malaysian planes for its transport ministry. The cars will be used as government vehicles and taxis, Najib said.
Najib and Habibie signed a tentative agreement in Jakarta in May 1994 but the final agreement was delayed till this year due to technical reasons, Malaysian officials said.
"This transaction is a commitment to the future and allows us to fly to the 21st century with state-of-the art aerospace technology," Habibie said.
Indonesia and Malaysia are members of the Association of Southeast Asian Nations (ASEAN) which also groups Brunei, the Philippines, Singapore and Thailand.
Consortium
Habibie, a German-trained engineer who initiated Indonesian plane manufacturer IPTN in 1976, said Southeast Asian countries can follow Europe's Airbus Industrie in forming the consortium.
"Airbus Industrie has gone from making one plane into being one of the world's major aircraft manufacturers," he said.
Najib said Malaysia will study Habibie's proposal but would work on its own aerospace industry first before committing to a regional consortium.
"Once we have finalized our aerospace plan, we can discuss with Indonesia and other Southeast Asian nations the merits of setting up a consortium based on the European model," he said.
Malaysia's fledgling aerospace industry comprises several state-owned and private firms assembling and making planes using foreign technology.
Apart from the MD3-160 trainer, which is made using Swiss technology, Malaysia is manufacturing the Eagle aircraft using Australian composite technology and the German-designed amphibian Dornier Seastar aircraft.