State firms to help finace N-2130 jet

JAKARTA (JP): Twenty one state firms overseen by the Ministry of Industry and Trade will help finance the US$2 billion jet project of state-owned aircraft manufacturer PT IPTN, an official said here yesterday.

The ministry's secretary general, Aidil Juzar, said the 21 firms have been persuaded to buy shares worth Rp 70 billion (US$30 million) in PT Dua Satu Tiga Puluh (DSTP).

DSTP is a company set up in February by President Soeharto in a private capacity to finance the construction of the 100-seater N-2130 jets. DSTP is offering shares to the public to generate the needed funds.

Minister of Agriculture Sjarifudin Baharsjah said earlier this week that state firms overseen by his office will contribute Rp 73 billion to the project.

Earlier this year, Minister of Forestry Djamaludin Suryohadikusumo revealed that state firms overseen by his office had bought 15,100 DSTP shares worth $15.1 million.

When the company was founded in February, Soeharto owned 44,950 priority shares worth Rp 103.38 billion, while nine tycoons owned 45,000 priority shares worth Rp 103.5 billion.

On Thursday, Soeharto called on regents and city mayors to lead the fund raising campaign in their respective areas for the jet project.

A number of critics have blasted the government-backed fund-raising campaign for the jet project as another possible factor contributing to high costs in the country's economy. (rid)