Soeharto calls for self-reliance in transportation

Soeharto calls for self-reliance in transportation

JAKARTA (JP): President Soeharto called on domestic companies
yesterday to help make the country more self-reliant in sea, land
and air transportation.

Speaking at the opening of a three-day workshop being held by
the Ministry of Transportation, the President said that the
transportation field poses one of the greatest challenges of the
free trade era.

"We will continue to develop our domestic industry to make
vehicles affordable to people so that we can reduce our
dependency on overseas supplies," Soeharto said.

He said the country should prepare means of transportation
that are suitable for Indonesia's geography.

"We have proven that if there is a strong and well-planned
will, we can develop a high-technology industry producing goods
with a competitive edge.

"We have seen encouraging results in the last few years in
developing aeronautics," Soeharto said.

Indonesia's state-owned aircraft manufacturer PT Industri
Pesawat Terbang Nusantara (IPTN) produces its small commuter
aircraft CN-235 in cooperation with CASA of Spain and its wholly-
domestically designed N-250. The maiden flight of the N-250
turboprop passenger aircraft was successfully undertaken last
year.

The government has approved IPTN's plan to develop the
country's first passenger jet. The N-2130 is expected to roll off
the production line in 2002.

State-owned PT PAL produces ships for Indonesia, including the
500-passenger Palindo Jaya vessel.

IPTN and PAL are overseen by the Strategic Industries
Management Board (BPIS) chaired by State Minister of Research and
Technology B.J. Habibie, together with eight other enterprises,
including railway equipment producer PT Inka.

In land transportation, the government has licensed privately-
owned PT Timor Putra Nasional, controlled by President Soeharto's
youngest son Hutomo Mandala Putra, to develop a national car in
cooperation with Kia Motors of South Korea. Timor Putra has
received tax exemptions based on its ability to meet certain
local content requirements.

President Soeharto said that participation of the private
sector will be important in light of the expected high costs.

"We open the opportunity, as widely as possible, for the
private sector to take part in the development of the
transportation sector," he said.

He said that in the name of public interest, the government
will continue to set guidelines in the field as well as supervise
and set transportation tariffs.

The President also awarded Wahana Tata Nugraha Kencana and
Wahana Tata Nugraha trophies to 42 big and small cities in the
country for their successful traffic discipline campaigns.

Semarang in Central Java, Padang in West Sumatra, Balikpapan
in East Kalimantan and Blitar in East Java won the Wahana Tata
Nugraha Kencana trophies for having won Wahana Tata Nugraha
trophies five times in five years.

Thirty-eight cities won this year's Wahana Tata Nugraha
trophies.

Minister of Transportation Haryanto Dhanutirto reported to the
President yesterday, saying that the number of this year's
winning cities is higher than 28 in 1995 and 21 in 1994.

Haryanto also reported that there were 7,873 traffic accidents
throughout the country from January to July.

He said that the figures reached 22,492 in 1991, 19,920 in
1992, 17,323 in 1993, 17,469 in 1994 and 16,510 in 1995. (icn)