West Java to help salvage aircraft firm

Nana Rukmana, The Jakarta Post, Indramayu, West Java

West Java Governor Danny Setyawan says the province is committed to helping the central government salvage ailing aircraft manufacturer PT Dirgantara Indonesia.

He said on Saturday that he had won support from the provincial legislative council to inject money from its 2004 budget to help the company recover from its chronic financial problems.

"We have yet to how much funds we will provide because we are waiting for the green light from the state minister for state- owned enterprises."

He was speaking as he accompanied President Megawati Soekarnoputri's husband Taufik Kiemas on a visit to Indramayu on Saturday.

The company was established in 1980 to produce propeller aircraft and helicopters but has suffered due to its high operational costs and weak sales.

West Java legislature chairman Eka Santosa, who also accompanied Taufik, confirmed the provincial legislative council would support the governor's decision to aid the aircraft manufacturer.

"West Java has its own reasons to help PT DI as the factory, a symbol of the nation's pride, is located in Bandung," he said.

Asked about the proposed dismissal of 6,000 of the company's 9,670 workers, Danny said he had called on the central government to attract more foreign investment in the province to create job opportunities for the workers if they had to be dismissed.

"We can't help them if they have to be dismissed," he said.

The workers are suing the company management over its restructuring plans.