Government Must Protect the Aviation Industry

Bandung, West Java (Antara) - Industry Minister MS Hidayat said the aviation industry, which produces aircraft will continue to be developed and protected, so that Indonesia could meet its demand for small aircraft to connect its remote regions. "We are supporting the development of the aviation industry because it could lead to the development of hundreds or even thousands of other industries," he said, when visiting PT Dirgantara Indonesia, here on Friday. He noted that aircraft is badly needed to connect regions in the country. He also stated that the central and regional governments and PT DI have discussed the specifications of aircraft needed to connect isolated regions. In connection with that, he said the government supported the 19-seated N219 aircraft development project as the aircraft would meet domestic needs. "The aircraft is predicted to be able to absorb 40 percent local components and this will be increased to 60 percent later," he said. Hidayat promised if the local components used in the aircraft reached 60 percent, it would be protected against similar components made by foreign companies that have low local content. Through the National Development Planning Board, the government will also support PT DI by injecting Rp400 billion for N219 research and development. PT DI will cooperate with LAPAN (the National Institute of Aviation and Outerspace) for the N219 research and development project covering four prototypes. "This year we have provided Rp310 billion worth of research and development assistance through LAPAN and will provide Rp90 billion more next year," he said. PT DI's marketing VP Arie Wibowo, on the occasion, said the company needed about Rp500 billion for the N219 research and development. "We will meet the shortage from our sales proceeds," he said. The strategic state-owned company has so far produced and marketed CN235, besides helicopters and Nc212, as well as a number of aircraft components with their export value reaching US$20-25 million a year. The director general of High Technology-based Prime Industries, Budi Darmadi, meanwhile said the aircraft industry could produce hundred component industries. "Right now there are 40 to 50 component industries that have the potential to support aircraft development," he said. (*) Reporting by Risbiani Fardaniah