The proposed capital injection will come in the form of state capital placement in which the government will turn the state aircraft maker`s debts into state capital.Jakarta (ANTARA News) - The government is planning to inject around Rp5.1 trillion in funds to state aircraft maker PT Dirgantara Indonesia (DI), a minister said.
"It (the plan) is still under process," Industry Minister MS Hidayat said after opening an exhibition and seminar on machinery and transportation means industry here on Tuesday.
The proposed capital injection will come in the form of state capital placement in which the government will turn the state aircraft maker`s debts into state capital.
Hidayat said he had submitted a proposal for capital injection to the House of Representatives Commission VI and the Finance Ministry was currently studying the proposal.
"PT DI must be restructured first to make it bankable so it can carry out production without past burden," he said.
He expressed optimism that if the company had been restructured it would be able to produce commercial planes which had high competitive edge.
"PT DI has mastered (aviation) technology and secured FAA certificate," he said.
He predicted that PT DI would be able to produce better aircraft than Chinese-made MA-60 planes.
"If we want our defence industry to make progress, we have to improve it in stages," he said.
He further said Indonesia would also develop aircraft with matured technology using high quantities of local contents.
"The aircraft is expected to fly to all parts of Indonesia, particularly the eastern parts which have a minimum number of airports and are made up of mountainous terrains," he said.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2011
