RI seeks offset arrangement for all aircraft purchases

JAKARTA (JP): Indonesia will require an offset arrangement for any purchase of aircraft from other countries in a bid to promote the development of its own aviation industry, Minister for Research and Technology B.J. Habibie said yesterday.

"The offset requirement, directed by President Soeharto, was applied when we ordered F-16 fighters from the United States," he said.

In 1986 Indonesia bought 11 F-16s from the United States, which agreed to award PT Industri Pesawat Terbang Nusantara (IPTN) a contract to make flaps for 400 F-16s.

In a discussion with hundreds of students during the air show at Soekarno-Hatta airport yesterday, Habibie said that IPTN has also won licenses from Boeing Co. of the United States and the European consortium Airbus Industrie to assemble components, including windows for Boeing's B-767 and flaps for the B-737.

"Because I have always been requiring offset arrangements in the United States, people there call me Mr. Offset," Habibie joked.

He also shared his philosophy in developing the industry in Indonesia.

"Developing military jets is cheaper than developing commercial airplanes. The two businesses have different characteristics. For military purposes, the rankings in importance are the mission of the aircraft, safety and cost, while for commercial purposes, the concerns are safety, cost and mission," he said when a student asked why he was not interested in developing military aircraft.

"On the other hand, the human resources for military and commercial purposes are different. And developing military aircraft will not result in much money being made."

Habibie also reiterated that IPTN had taken several steps to develop aircraft. "We first set up a partnership to jointly design and sell NC-212 aircraft and then CN-235s. Afterwards, we were able to develop our own commuter aircraft, the N-250. Now we have decided to develop our own jet, the N-2130."

When asked about his ambitions in the aviation business, Habibie said: "I have the responsibility to provide technology which creates money for the nation. Vehicles or computers have been handled by other countries, so we should take the aviation route."

Out of some 180 nations in the world, only eight produce more- than-30-seat commercial aircraft, including Indonesia, the only one in Asia. China, India and Japan only have military aircraft industries.(icn)