Mar'ie rules out credits for RI aircraft exports
Mar'ie rules out credits for RI aircraft exports
JAKARTA (JP): Minister of Finance Mar'ie Muhammad
categorically rejected yesterday the possibility of providing
export credits for foreign buyers of such high-tech products as
aircraft from Indonesian companies.
"It is almost impossible for us to provide such a payment
scheme. The problem is: where we would get such funds from?," the
minister told the Budgetary Commission of the House of
Representatives during a hearing yesterday.
Mar'ie made the statements in answer to a question from House
member Bambang Warih Koesoemo of the Golkar faction.
Bambang raised several questions about the proposal, made by
Minister of Research and Technology, B.J. Habibie, that the
government grant export credits to support the sale of Indonesian
aircraft.
Golkar has terminated Bambang's position as a member of the
House, but his official dismissal as a legislator awaits final
endorsement of the House leadership (speakers and vice speakers)
and of President Soeharto.
Asked by Bambang when the government would be able to provide
such export credits, Mar'ie replied: "It might be possible in the
future, but it is impossible right now..."
The minister of finance said he had to make it quite clear
that, as things currently stand, the Indonesian economy cannot
afford to grant export credits for the sale of products from
companies under the supervision of the Agency for the Management
of Strategic Industries (BPIS).
"I feel it is sometimes important to make a straight-to-the-
point answer," he told the House in relation to the proposal from
BPIS Chairman B.J. Habibie that export credit financing be
provided to push along the sale of such high-tech products as
aircraft.
"Giving an unclear or ambiguous answer could generate false
expectations," he said.
He stressed that granting export credits to buyers of products
manufactured by BPIS strategic industries, such as CN-235
aircraft, is out of the question at present.
Minister for Research and Technology B.J. Habibie had argued
on Monday that the strategic industries under his supervision,
including the Bandung-based IPTN aircraft producer and the
Surabaya-based PT PAL shipbuilding company, had often been beaten
in the international market as a result, mainly, of the absence
of export credit financing.
Habibie said the absence of export credit facilities was the
main reason for the uncompetitiveness of IPTN aircraft on the
international market.
Losing money
Habibie admitted on Monday that five of the 10 companies under
BPIS have been losing money. He said this was not because their
products were uncompetitive but, rather, because their sales
efforts have not been supported by export credit financing.
"Nobody pays cash for aircraft, ships or trains," he told
journalists during a break of the House hearing.
He argued that all IPTN's competitors on the international
market supported their sales with export credit financing.
"We should therefore be given such a facility so that we can
compete under the same conditions," he said.
He added that President Soeharto had asked him to discuss,
with both the finance minister and the governor of the central
bank, the possibility of arranging export credits in order to
support aircraft sales by IPTN.
"If such export credit financing is not possible, then I think
it is better to close down those strategic industries, even if
that means firing 47,000 highly-skilled employees," Habibie said.
At yesterday's hearing, the Minister Mar'ie reiterated that
any incentives provided to companies under BPIS or to other
industrial firms should be based on existing regulations.
"We are committed to granting tax incentives and other fiscal
support to BPIS companies, provided these are in line with
existing regulations," Mar'ie said.(hen)