Texmaco can build vehicles: Minister

JAKARTA: The government has finished a technological audit of ailing textile company PT Texmaco's machines, and confirmed that the equipment can be used to manufacture large-sized vehicles.

State Minister for Research and Technology Hatta Radjasa said on Tuesday, however, the audit was unable to determine the quality of any vehicles the company could build.

"We have to further discuss and analyze the ability of the machines to manufacture vehicles. Many of them are not even installed yet," Hatta said after visiting President Megawati Soekarnoputri to wish her a happy Idul Fitri.

The ailing Texmaco was put under government supervision after its owner Marimutu Sinivasan failed to pay the company's debts of Rp 17 trillion (US$1.8 billion).

A full audit of its equipment and financial condition was conducted to decide the fate of the company, which used to manufacture large trucks for the military under the Perkasa name.

Indonesian Military (TNI) chief Gen. Endriartono Sutarto has suggested the President allow the company to manufacture military equipment. -- JP