Ministers work to form aircraft leasing company

Ministers work to form aircraft leasing company

JAKARTA (JP): State Minister of Research and Technology B.J.
Habibie said yesterday that he and Minister of Finance Mar'ie
Muhammad are working on the forming of a finance company to help
finance the sales of aircraft produced by state-owned PT IPTN.

"In a few months ahead, I hope it becomes a reality," Habibie
said at a seminar organized by the committee of the Indonesian
Product Exhibition at the Jakarta Fairgrounds.

The minister explained that the move is to support the
marketing of IPTN's products because "no aircraft companies in
the world sell their products for cash."

He said the United Arab Emirates, which had ordered seven of
IPTN's newest N-250 aircraft, proposed to help with the financing
of IPTN's products.

The problem of marketing IPTN-made aircraft surfaced earlier
this year when Habibie suggested that the government provide
export credit facilities for products of strategic industries,
including IPTN's aircraft. However, Minister Mar'ie turned down
the proposal, saying that the government was short of funds for
such facilities.

After attending the inauguration of the maiden flight of IPTN-
made N-250 in Bandung, West Java, last week, Mar'ie said he was
ready to discuss with Habibie a way of marketing IPTN's products.

Meanwhile, Minister of Industry Tunky Ariwibowo said yesterday
that a number of state-owned companies under his supervision are
ready to help finance the construction of the N-2130 jet aircraft
by IPTN.

Ready

"The most ready ones are cement, fertilizer and paper
companies," Tunky told journalists after inducting a number of
new officials at the Ministry of Industry.

Currently the ministry oversees five cement companies, six
fertilizer companies and two paper firms. They are PT Semen
Gresik, PT Semen Padang, PT Semen Tonasa, PT Semen Baturaja, PT
Semen Kupang, PT Petrokimia Gresik, PT Pupuk Sriwijaya, PT Pupuk
Kalimantan Timur, PT Pupuk Kujang, PT Pupuk Iskandar Muda, PT
Asean Aceh Fertilizer, PT Kertas Kraft Aceh and PT Kertas Leces.

He assured that by helping finance the development of the N-
2130, the state-run companies will not face cash-flow problems.
However, he noted that the final decision on the matter is the
finance minister's, who is the official shareholder of all state
companies.

The construction of N-2130 aircraft, which is under the
supervision of Ilham Habibie, a son of Minister Habibie, will
require at least US$2 billion. The prototype is expected to hit
the sky by 2003.

However, Minister of Forestry Djamaludin Suryohadikusumo
assured that no reforestation funds will be earmarked for the
construction of the N-2130.

Djamaludin transferred some $180 million in interest-free
loans derived from the reforestation funds to IPTN for the
construction of the N-250.

President Soeharto said after officiating at the maiden flight
of the N-250 aircraft that the funding for the N-2130 will not be
taken from the state budget but from other sources such as state-
owned enterprises. (rid)