State airplane producer DI wins European award for best supplier

Yuli Tri Suwarni ,  The Jakarta Post ,  Bandung   |  Fri, 03/14/2008 1:21 AM  |  Business

State-owned airplane producer PT Dirgantara Indonesia (DI) received the Best Performance Supplier 2007 award on Tuesday from major Airbus aerostructure supplier Spirit AeroSystems Europe Ltd.

In remarks made at Spirit's headquarters in Bandung, West Java, spokesman Simon J. Collins said the award was intended to show appreciation for DI's leading-edge manufacturing ability and delivery system.

Meanwhile, DI President director Budi Santoso said the company would finish 15 sets of Airbus A380 wing components and parts this year and 25 more sets over the next three years.

The company, Budi said, was also producing 30 sets of Airbus A320 wing components and parts each month.

"This award is a token of trust that helps boost our confidence in competing in the global market."

Within two years the airline company hopes to double its 1 percent share in the global airplane components assembly market, an industry whose size could reach US$5 billion this year, according to Budi.

In line with growing global demand for airplanes and the company's improving performance, orders for components come from foreign manufacturers including Airbus, Boeing, Bombardier, EADS, CASA and Eurocopter and are expected to grow significantly, Budi said without elaborating.

He added new deals were being negotiated with Airbus, Hawker and Eurocopter.

To meet the growing demand, he said, the company has been revitalizing outdated technology infrastructure through a series of new investments.

The airline producer is also receiving local orders, including from the Indonesian government for three Superpuma air fighters.

However the planes which cost between $16 and $18 million were only 50 to 80 percent complete "due to payment problems", he said.

"Hopefully this year the government will be able to release the funds."

Aside from Superpuma, Dirgantara also produces the Maritime Patrol Aircraft (MPA), which is currently in high demand globally.

"Korea is interested in buying MPAs from us."

Last year the company narrowly avoided liquidation after finding itself in Commercial Court bankruptcy proceedings.

In September the company was to have been wound up to pay creditors and make severance payments to some 6,500 former employees.

However, in October an appeal by DI was accepted by the Supreme Court.

The company was ordered to pay compensation worth Rp 200 billion (about $21.8 million) to the former workers, but the dispute has yet to reach a final conclusion.

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