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IMF attempt to Destroy Indonesia Aerospace Industry

If you can make a good airplane on your own, no one can 'destroy' it. Regarding to competing with Boeing and Airbus, even Bombardier and Embraer pose no threat to this dual monopoly. The only potential future competitor is COMAC/CRAIC with their C919 and CR929. But still, we have to wait until the engines like ACAE CJ-1000A become mature.
Talking about ambitious plans, we have the Y-10 program in the 1970s, and made multiple test-fly through the 80s, but the program failed due to various reasons.
It is not IMF who 'destroyed' your aerospace industry, but your plan is unrealistic from the beginning based on your economic and technological strength.

N 250 program despite being the first plane in the world in its category to use Fly By Ware (FBW) system, IMO is still achievable business wise and can successfully make 72 seats version to compete with ATR 72 if the fund is not stopped.

On the other hand N 2130 program I am agree that it is not realistic in business sense, not to mention whether Indonesian government will be able to give many credit line to the buyers either.

The reason of why Indonesian Aerospace was so ambitious at that moment is because the CEO is Engineer who is Habibie himself. Engineer dream is to make sophisticated product while in many time they dont care to much whether it has business sense or not. Engineers needs to be managed by business people.

This is why Indonesian Aerospace is now lead by a successful CEO who in previous record can transform almost bankrupt state owned company, PT Pelni, which previously concentrated on passenger ship service, a die business after the emergence of low cost airline, into a profitable company and now focus on cargo service.

Indonesia Aerospace leadership in the old time was also filled by design engineers with so many dreams and plan in their head, but since 2004 it was taken by Production division man who has this N 219 plan before former PT PELNI CEO take the leadership since 2018.
 
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Btw N2130 wouldn't compete with Airbus neither Boeing also, they would compete with Embraer, Bombardier, ARJ21 (Comac), and Sukhoi Super 100?

Since the beginning of the program, N 2130 has been planned to have 104-132 seats. In the beginning of development it will build 104 seats passenger seats but it will be developed further to have 132 seats which is in par with Airbus A 320 and Boeing 737.

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N2130 Regional Jet

Companies considering a regional jet (or participation in a program) include PT Industri Pesawat Terbang Nusantara (IPTN) of Indonesia. Indonesia has indicated its desire to bring to market the IPTN-designed N-2130 turbofan, a 104- to 132-seat aircraft that began as an outgrowth of its N-250 turboprop. The N250 turboprop carrier was the pride of Indonesia. Coming exactly a week before the 50th anniversary of Indonesia's declaration of independence from the Dutch, the first flight of the N-250 turboprop in August 1995 brimmed with symbolism. The successful first flight for Indonesia's new N-250 commercial airplane led to an announcement of a plan for a mid-range jet aircraft to be finished in 2003 or 2004. Experts said the new, $2 billion plan was even more ambitious, entering a fiercely competitive arena. Habibie's son, a former Boeing engineer, was to head it up.

The N2130 Technology Program (NTP) was launched in October 1994 as a market and product-definition study. The NTP team was headed by Habibie's eldest son, Ilham, and consists of IPTN's younger, so-called "second generation", design engineers and managers. Its work was to be concluded by March 1997, with the drafting of the aircraft's design requirements and objectives.

PT Dua Satu Tiga Puluh (DSTP) as owner or holding company was founded in 1995 [1996?], soon after IPTN N250's roll out. Though industry officials pointed to the aerospace sector's lack of skill in finding and attracting varied sources of capital, the industry had made some progress in securing alternate funding. PT Dua Satu Tiga Puluh (DSTP) was founded to function as IPTN's fund-raising agency for the N-2130. DSTP was to raise the $2 billion needed for the design, prototyping, and certification of the aircraft through the private investment of individuals, corporations, and foundations, and an initial shares offering to the Indonesian public.

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The aircraft itself, the twin jet 80-130 passenger aircraft N2130, was put into design since 1994, while the plan was already announced three years earlier. According to the timetable presented by IPTN during the Le Bourget Paris Airshow 1995, on March 1997 N2130 should be on 'Design Requirements and Objective' phase, by April 1997, it should have been in the preliminary design process which will be finalized in 2000. According to the 1995 time table, the all-Indonesian-made aircraft would have its maiden flight on March 2004, and the very next month go into certification process until it finally delivered to its first operator on the June 2006 Indonesia Air Show.

Considering the cost and level of technology involved, some observers questioned whether the N2130 project was just a ticket to participation in one of the other various Asian 100-seater projects. In a market report published on 16 May 1996, the Teal Group dismissed the project as a scheme "driven by techno-nationalist fantasies, not market realities." Even Western firms jockeying for a spot on the aircraft were guarded about its prospects.

By late 1996 three versions were envisaged, with a 29.45m-long airframe serving as the baseline 100-seat design. This will be followed by an 80-seat, 22.20m-shrink version and a 39.20m-stretch derivative, seating up to 130 passengers, in a single-class configuration. Subsequent consultations with airlines, however, revealed little support for either an 80-seater or a five-abreast cabin cross-section. So by 1997 IPTN had dropped plans to develop a shortened, 80-seat, version of the planned N2130 short-haul jet-airliner and instead opted for a larger-aircraft family with six-abreast seating for between 104 and 132 passengers.

Designers opted for a 3.95m-diameter circular-section hull, while the length of the baseline aircraft was been lengthened by 1m, to 31.25m. The baseline N2130, tentatively designated the -100, would be able to accommodate 114 passengers in single-class configuration, with 812mm seat pitch, or 104 in a mixed two-class layout. The stretched, 33.86m-long, -200 version would seat up to 132 passengers in an all-tourist-class configuration. In the face of increased competition from other Asian consortia in the 100-seat jet market, by 1998 IPTN had opted to speed up development by 2 years, leading to planned production of the first N-2130 aircraft by 2002 and deliveries beginning in 2004.

A wing part of a 1:7.89 scale half-span wind tunnel model was designed and built for Indonesian Aircraft Industries (IPTN) in the years 1999/2000 by Vojnotehnièki Institut Ratka Resanoviæa [VTI], Beograd, Serbia. The wing segment comprised: wing, including main wing box (1805mm half-span), single-slotted flaps (4 positions), clean high-speed leading edges, slats, an immovable aileron, and installation for measurement of pressure distribution on seven chordwise wing sections, ·wing-fuselage fairing, through-flow nacelle (TFN) and its pylon, with instrumentation for measurement of pressure distribution, turbofan power simulator nacelle (TPS) and its pylon, with instrumentation for measurement of internal flow parameters and other installations necessary or the operation of the power simulator.

Most of the model was produced on CNC milling machines. For some specific components CNC EDM (electrode and wire-cut) was used. Artistic hand finish was applied when appropriate. Main parts were built from high-grade stainless steel, while the less stressed parts were made from aluminum alloy. Quality control was carried out on CMM coordinate measuring machines. Main parts of the wing were the outer and the inner wing box, each box assembled from the upper and the lower half. Sides of the boxes formed two main spars of the wing. Leading and trailing edge devices were detachable in order to enable changing of wing configuration.

In July 2000 the wing was transported to ONERA facilities at Tolouse and there was assembled with the fuselage-tail assembly. During the summer of the same year the model was successfully tested in F1 and S1 wind tunnels.

In the decade of the 1990's the human aspect once again took center stage in the design and operation of commercial aircraft. As occupation health and safety has gained importance in society in general, it has gained even more importance in the design an operation of commercial aircraft. In aircraft design today, the man-machine interface is considered in every task of the human workload. The discipline of ergonomics truly impacts each phase of product or tool design. At IPTN, the ergonomics effort is principally being applied to the design of the cockpit, cabin and cargo compartment of the N250. The ergonomists at IPTN are keenly aware that there would be a conflict between the user and his working environment without proper attention to the human considerations in the design is left for ergonomists and innovative programs like IPTN's participatory approach, to ensure that the human aspect is optimized in the man-machine interface.

Wwhile industry sources confirmed the existence of a potential Indonesian market for regional aircraft, opinions differed as to the size of this market, an important factor in IPTN's ability to achieve the economies of scale necessary to produce an international competitive aircraft. A feasibility study by IPTN projected that 25 percent of global demand for regional jet aircraft of approximately 100 seats will be met through sales of the N-2130, specifically 168 units domestically and 632 units internationally during 2005-2025.

By 1998 the Indonesian aircraft industry faced serious economic and political uncertainty because of the region's financial crisis. Nonetheless, Indonesian industry officials indicated that the aircraft industry was proceeding into the preliminary and detail design stages of the N-2130 program. Though IPTN had long supported a large aerospace work force, employees' work hours were cut to reduce expenditures and the company plans to lay off 3,000 workers in 1998.

Despite a possible postponement of 2-3 years, as of 1998 Indonesia intended to continue development of the N-2130 regional jet and looked to market the aircraft throughout Asia. In 1998 DSTP officials indicated that the company was considering listing its shares on the Jakarta Stock Exchange in 5-6 years and may eventually allow foreign investment. As of September 1997, DSTP raised 25 percent of the N-2130's development costs. However, the ability of DSTP to meet its goal of raising $2 billion by 2002 was uncertain. DSTP officials indicated that the country's financial situation had severely inhibited fund-raising abilities, and complaints over the public shares offering have reportedly prompted IPTN to call for a review of the company's methods of capital mobilization.

On September 29, 1999, PT Dua Satu Tiga Puluh (DSTP), the company responsible for N2130's funding, was officially dismissed. Its preliminary design was to be handed over to the Ministry of Industry and Trade, and the US$ 70 million spent on the design process was to be considered as 'sunk-cost'.

N2130 Regional Jet
 
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IPTN has never fully opened its financial books and analysts have long suspected the Bandung company of having racked up considerable losses since its establishment in 1976.

There was NO IMF attempt to "Destroy Indonesia Aerospace Industry". The reason to insist on stopping government funding were the huge losses racked up by IPTN and the secrecy around those losses. The real crooks here are within Indonesia, not IMF.
 
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There was NO IMF attempt to "Destroy Indonesia Aerospace Industry". The reason to insist on stopping government funding were the huge losses racked up by IPTN and the secrecy around those losses. The real crooks here are within Indonesia, not IMF.

You are making an assumption by saying huge lost here. IPTN ( Indonesian Aerospace/PTDI now) is a strategic company and it employed around 16.000 employees in the past. Most of the orders at that time is from Indonesian government.

With the economic crisis going on at that time, there is no big orders given by the government from that period, even until 2014. Thanks that foreign orders keep coming from Malaysia, UAE, Pakistan, Brunei, and South Korea from 1998 until 2007 where it was the most difficult period of the IPTN/PTDI. Some aerostructure business ( making parts for Boeing/Airbus/Airbus Defense) is also the other business entity that makes the company survive amid no Government financial help.

Not to mention IPTN has to do massive layoff and just keep around 4500 employees and the company of course must pay severance pay which is not cheap. This is to keep business going on amid no/very few Government orders.

In that situation then it will be strange if IMF insisted the government not to give any financial assistance to the company. We were experiencing very big financial crisis during that period. If we have to give up N 2130 then it will be fine, but unfinished program like N 250 where 2 prototypes have been built still needs money to finish development and certification. At least we have to build another 4-6 prototypes + development and certification cost which is not cheap and the company was under huge financial pressure since government cannot even give a penny to the company because of IMF strict condition.

If N 250 program was still continuing then the company could possibly get huge order since not long after that there is low cost airplanes that makes the airline industry quite booming, even until 2019.
 
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In that situation then it will be strange if IMF insisted the government not to give any financial assistance to the company. We were experiencing very big financial crisis during that period.

In times of financial crises, the correct strategy is to cut losses, just as IMF suggested.
 
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N250 Project Stops Because of IMF, BJ Habibie: This is Crime​

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Reporter:

Tempo.co​

Editor:

Yudono Yanuar​

Friday, September 13, 2019 08:44 WIB

TEMPO.CO , Jakarta - One thing that disappointed BJ Habibie was the failure of his N250 aircraft to be mass produced. This turboprop aircraft with fly by wire technology was designed in the 1990s after leading IPTN.


"In August 1996, we succeeded in flying the prototype N-250 Gatotkaca at Husein Sastranegara Airport, Bandung," Habibie said in the May 28, 2012 edition of Tempo Magazine.

"This aircraft is the first aircraft in its class—subsonic speed—that uses fly by wire technology (all movements are controlled by a computer). At that time, the N-250 was the third aircraft to implement this technology, in addition to the Airbus A-340 and Boeing 767. But the two planes are large-capacity jet passenger aircraft. The birth of the N-250 Gatotkaca was a great success and was praised by the world, "said Habibie.


But the story ends differently. When the monetary crisis hit Indonesia in 1997, the IMF was willing to help the government with a US$ 5 billion loan with one of the conditions to stop subsidies on IPTN.

As a result, the N250 project stopped halfway. "This means that the government is no longer helping IPTN complete the N-250 turboprop. Even though the aircraft is in the final process of flight testing to obtain national and international airworthiness certification from the American Federation Aviation Agency and airworthiness certification from the European Joint Airworthiness Agency," said Habibie who his hands and mouth trembled as he spoke.

"They destroyed everything I had built. This is criminal to me," said BJ Habibie.

 
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