Industry Ministry supports Dirgantara Indonesia`s aircraft export

Jakarta (ANTARA News) – The Ministry of Industry is supporting PT Dirgantara Indonesia (PT DI) to export its aircraft through buyers credit financing under the National Interest Account (NIA) scheme of Indonesian Export Financing Institution (LPEI), or Indonesia Eximbank.

“Its about financing. The governments support for its first stage is in the form of buyers credit for some countries that need such funding. We give loans to countries which want to buy our aircraft,” head of the industrial research and development in the ministry, Haris Munandar, said.

He earlier accompanied Industry Minister Airlangga Hartarto in a meeting with PT DIs board of directors here on Wednesday.

Haris disclosed that the buyers credit could reach Rp400 billion (US$30 million) for aircraft export to some countries, such as Thailand, the Philippines, Nepal, Senegal and the United Arab Emirates.

“Such funding would not be available to all buyers. Only some countries in need, such as Nepal and Senegal, can enjoy this facility. Rich countries would not need this,” Haris explained.

However, the funding could also be used by PT DI to improve its exported products competitiveness.

“Thailand and the United Arab Emirates will not need such credit. The buyers credit will be submitted towards working capital so that the aircraft can compete in the global market in terms of price,” he noted.

Meanwhile, President Director of PT DI Budi Santoso revealed that the company has been making efforts to boost exports by 2018.

“If we look at our national market share, we cannot depend on the state budget or on government buying. Our target is to increase exports in 2018,” he stressed.

The company would target African countries next, considering the high demand potential there. The LPEIs financing scheme will help in this endeavor.

“Under the NIA scheme, we sould be pusing exports to earn more state revenue. It can be used for funding or, as producers, we can use it as working capital,” he added.

Currently Vietnam, the Philippines and Thailand have been using the companys NC212 type aircraft.

The United Arab Emirates and South Korea bought its CN235 aircrafts.

(Reported by Sella Panduarsa Gareta/Uu.S022/INE/KR-BSR/H-YH)