Thu, 19 Sep 1996

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)