PTDI delivers plane to Pakistan

Yuli Tri Suwarni, The Jakarta Post, Bandung

Amid the nation's financial crisis and an internal labor dispute, state-owned aircraft manufacturer PT Dirgantara Indonesia (DI) delivered on Wednesday military passenger plane CN235-220 to Pakistan, but paid a penalty of US$300,000 for a three-month delay.

PTDI president Edwin Sudarmo said the financial crisis and the dispute with its workers had caused the delay.

"However, I thank the workers who worked hard to complete the order," Edwin told reporters after handing over the 49-passenger plane to Pakistani Air Force officer Commodore Kazim Ali Awan. The ceremony was witnessed by Pakistani Ambassador to Indonesia Syed Mustafa Anwer Hussain.

PTDI business operations director Budi Wuraskito said Pakistan had signed an agreement on July 29, 2002 to purchase four planes worth US$52 million.

Budi said two similar aircraft would be delivered in late June and August while the remaining plane, which was designed as a VIP aircraft, would be delivered on time by the end of this year.

He said the company needed a $2 million working capital to complete the three planes. The company's existing $8 million working capital would be used to develop two planes for the Malaysian Air Force.

PTDI recently failed to resolve the dismissal of 6,600 of its 9,000 workers through a bipartite negotiation, and the issue is to be taken up by the Committee for the Settlement of Labor Disputes, which is expected to prolong the process.