State firms to help finace N-2130 jet

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)