West Java to help salvage aircraft firm

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.