INDONESIA AS NEW EMERGING MARKET

Wednesday, June 07, 2006

Indonesia to buy transport planes from Poland

JAKARTA (Agencies): Poland agreed Tuesday to sell 10 M-28 Skytruck light transport airplanes to Indonesia as part of a memorandum of understanding to increase defense cooperation.

The memorandum was signed by Defense Minister Juwono Sudarsono and his Polish counterpart Radoslaw Sikorski in Jakarta.

The purchase will use a US$75 million loan offered by Poland. The east European country initially offered a loan up to $260 million to buy the airplanes.

The Skytrucks -- produced by Polish state aircraft maker PZL Mielec -- will be operated by the National Police and the Navy for maritime patrol missions.

Indonesia purchased several Skytrucks for $135 million during the presidency of Megawati Soekarnoputri in 2003.

Juwono also said that state aircraft maker PT Dirgantara Indonesia (DI) would get a work contract of between 3 to 6 percent of the value of the purchase as part of efforts to empower state-owned defense industries.

Skytruck is a dual-engine light transport airplane with similar capabilities to PT DI's own CN-212 Aviocar.

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