RI: Rolls-Royce's fast growing market

DERBY, England (JP): Indonesia, as part of Asia, has emerged as a fast growing market for both Rolls-Royce aero and industrial engines.

Rolls-Royce has been very active in developing a consistent and cooperative program with Indonesia in recognition of the country's market potential. The abundant natural resources Indonesia offers has prompted the British aero and industrial engine maker to set up its marketing campaign.

"Our approach is based on long-term partnerships to establish joint ventures and transfer technologies," said Gary Atkins, press and publicity manager of Rolls-Royce's Aerospace Group.

Atkins briefed a group of Indonesian journalists during a three-day visit to various Rolls-Royce facilities in England recently.

"We are committed to the future of Indonesia, whose abundant natural resources bring strong exports and stable currency. Rapid industrialization and expansion give Rolls-Royce the opportunity to be of service in many sectors," he said.

The relationship between Rolls-Royce and Indonesia has progressively grown over the last 25 years. In civil aviation, it started when the Rolls-Royce Dart turboprop engine powered aircraft such as the HS748, Vickers Viscount and Fokker F27 which were used by Indonesian airlines such as Merpati, Sempati, Bouraq and Mandala. Garuda Indonesia took its first Rolls-Royce jet engine when it began operating Spey-powered F28s in the late- 1970s. Garuda then ordered Rolls-Royce's Tay-engined F100s which it transferred to Merpati, which currently have these aircraft in service.

The scheduled arrival in Jakarta today of the new generation big twin Rolls-Royce Trent-powered A330 marks a new hallmark in Indonesia's improving relations with the British aero engine maker.

The company is also busy lobbying Garuda for the use of Trent 800, the big brother of Trent 700 engines, for Boeing 777s being ordered by the airline.

Rolls-Royce has also been cooperating with the state-owned IPTN aircraft manufacturer and its Universal Maintenance Center which maintains and repairs Dart engines and is qualified to maintain Tay engines. The acquisition of the Allison Engine Company by Rolls-Royce last year further strengthened this connection as Allison's AE2100C engines power IPTN's N250 which is now undergoing certification prior to entering into service. Also, discussions are being held with IPTN about the suitability of the BR700 engines (produced by Rolls-Royce-BMW joint venture) as the power plant for the new N2130 regional jet.

Over the years Rolls-Royce has also built a strong relationship with the Indonesian Air Force. The Rolls-Royce Adour engine powers the 14 Hawk Mk53 trainer aircraft already in service and the 40 Hawk 100s and 200s which are being delivered over the next two years. Eighteen of the latest Hawks have already arrived. The Air Force also operates a fleet of Hercules C130 transport aircraft which are powered by Rolls-Royce Allison T56 turboprop engines.

The Indonesian Navy's fleet of corvettes use the Olympus marine engines.

The result of this scale of activity is that Rolls-Royce is now the largest single aero engine supplier to Indonesia with some 1,000 engines in service.

Industrial engines

Industrial engines derived and adapted from aero engines have become another fast growing market for Rolls-Royce in Indonesia.

Robin Singleton, chief of Rolls-Royce International office in Jakarta, told The Jakarta Post there are existing installations in the Natuna and Bontang oil fields.

Rolls-Royce currently operates industrial gas turbines with Conoco in the Natuna (South China Sea) field and with VICO in the Bontang (East Kalimantan) LNG facility.

"Also, Rolls-Royce is keenly interested in the Natuna natural gas field development which offers a range of opportunities for the company and where up to 24 Trent industrial engines could be required for pumping purposes," Singleton said.

Malcolm Bennet, marketing manager of Rolls-Royce Industrial and Marine gas Turbines Limited, told the Post during a press briefing at a Rolls-Royce facility in Barnoldswick, Lancashire, recently that Rolls-Royce is prepared to join the bidding process for the Natuna megaproject, which will reportedly be opened early next year.

"We are interested in the development of a number of platforms which could use some 24 Trent gas turbines," he said.

He said Rolls-Royce was participating in the current configuration studies for the project and the company is planning "PT Rolls-Royce Natuna" to act as a focal point to identify Indonesian partners and to maximize local content.

According to him, industrial gas turbines which have high power and high efficiency are ideal for offshore duty.

The Indonesian government will reportedly invite some 200 contractors to bid for a wide range of opportunities offered by the project.

Rolls-Royce is currently building a US$90 million, 60-megawatt combined cycle power plant for the state electricity company PT PLN in Samarinda, the capital of East Kalimantan province, using RB211 aeroderivative engines.

Bennet further said that besides the PLN project, Rolls-Royce also has plans to construct a 130 MW combined cycle power station in the East Kalimantan city, but on a private basis.

"We received a Letter of Preliminary Approval from the Ministry of Mines and Energy last July," he said.

The private Samarinda project will use Trent gas turbines.

Rolls-Royce is determined to support all these activities with promotional and information programs. Rolls-Royce was a major exhibitor at this year's Indonesia Air Show and regularly participates in other relevant events, such as oil and gas exhibitions, power generation industry conferences and seminars.

To demonstrate its growing commitment to Asia, the company also ran a major advertising campaign on ABN TV, in Asian Wall Street Journal and regional business magazines this year. The visit to its facilities in UK by selected Indonesian media and a regular flow of media information are also part of its efforts to keep the Indonesian market informed of Rolls-Royce developments.

The company opened its permanent office in Jakarta in 1990 and has since expanded it steadily to become a constant point of contact with Indonesian interests. The office is staffed by specialists in civil aviation, military engines and industrial power development. It also has product support staff in the field working directly with civil and military engine customers.

An important part of Rolls-Royce Jakarta office's responsibilities is market intelligence, by which means the company seeks to identify potential projects for which it might bid.

"Similarly, the growing awareness of Rolls-Royce's versatility leads to approaches to bid being made directly to the company by interested Indonesian parties. As a result, plans are in hand for the formation of joint ventures with Indonesian partners for the Natuna natural gas project and for other industrial power sectors," Singleton said.

Rolls-Royce runs an on-going training program for engineering staff involved in the maintenance, repair and overhaul of its engines. Universal Maintenance Center personnel are currently in place at the Allison engine plant in Indianapolis, U.S., and are also given training at Rolls-Royce UK sites such as Derby and east Kilbride, Scotland, where repair and overhaul facilities are concentrated.

Rolls-Royce has consistently identified Asia as its key growth market and the success throughout the region of its Trent 700/800 engines testifies to the success of this strategy. As well as the Trent 700 on the Airbus A330, the Trent 800 has dominated the Boeing 777 market in the region.

"With the growth in industrial power requirements for meeting Asia's infrastructure needs, this market becomes even more important. Hence, Rolls-Royce is constantly strengthening its presence throughout the region," said Singleton.