Soeharto leads firm to finance N-2130 jet project
Soeharto leads firm to finance N-2130 jet project
JAKARTA (JP): President Soeharto is heading a group of politicians and business conglomerates who have founded a company to raise at least US$2 billion to finance the development of a 130-seat passenger jetliner by the state-owned PT IPTN aerospace industry.
Soeharto (in his personal capacity) was appointed chief commissioner of the company, called PT Dua Satu Tiga Puluh, and former vice presidents Umar Wirahadikusumah and Sudharmono commissioners.
The management of the company, set up last Friday, is led by Minister/Cabinet Secretary Saadilah Mursjid as the president, assisted by Rahardi Ramelan, Deputy Chairman of the National Development Planning Agency (Bappenas), and Giri Suseno Hadihardjono of the Institute for the Development and Application of Technology (BPPT) as directors.
All officials are participating in the company in their personal capacities.
"The jet development project is vital to serve the needs of Indonesia's 200 million people," Soeharto said on Monday after the signing of a memorandum of understanding on cooperation between the new company and PT IPTN at the Merdeka Palace.
He said Indonesia, as a vast archipelagic country, needs to develop land, sea and air transportation to facilitate the efficient movements of goods and people.
"During the current Idul Fitri exodus, we faced severe difficulties in meeting the demand for transportation. The situation will be much worse in 10 or 20 years unless we act now."
He said since the jet's development, from the designing and engineering to the production of its prototypes for testing, requires a huge investment, its financing could not be derived from the state budget.
"Therefore, people should pool their resources to finance this project," Soeharto added, in stressing the objective of the new company.
PT Dua Satu Tiga Puluh (DSTP), the Indonesian words for "2130" - the name of the airplane to be developed, initially had an authorized capital of $400 million, split into 400,000 shares each with a par value of $1,000.
Soeharto thanked the 55 business conglomerates who have subscribed 50 percent of the $100 million paid up capital of PT DSTP.
Among the business shareholders attending the ceremony were Sudwikatmono, Mohammad (Bob) Hasan, Prajogo Pangestu, Eka Tjipta Widjaya and Henry Pribadi.
The president added that PT DSTP will sell its shares to the general public through direct placement to raise the $2 billion needed to develop the N-2130 jetliner.
"Since the development of the jetliner will take about five to eight years, we need about $400 million a year," he said.
The development of the N-2130 jetliner was first disclosed soon after the successful maiden flight of the first IPTN-made N- 250 turboprop airplane in Bandung last August.
The 70-seat commuter plane is being developed fully with state funds, including an equivalent of $180 million in an interest- free loan derived from the reforestation funds. Commercial sales are due to start in 1998.
Soeharto argued, however, that propeller airplanes such as the N-250 would not be adequate to meet Indonesia's air transportation needs in the 21st century.
"We therefore should start developing a jetliner right now not only to meet our own needs but also the international market demand," he said, adding that the world would need thousands of 100-130 seat jetliners between 2005 and 2025. Indonesia alone would require at least 170.
The new company will be based at the Granadi building at Jl. Rasuna Said which also houses the social foundations chaired by Soeharto. (vin)
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