Our Proud, CN-235MPA PT DI.
Budi Santoso: The President can be the company's salesman  | Interview | Tempo.Co :: Indonesian News Portal
Budi Santoso: The President can be the company's salesman
TEMPO.CO, Jakarta - Aircraft manufacturer Dirgantara Indonesia has made known its disappointment at the government's plan to purchase an Agusta Westland AW101 helicopter, manufactured by British company Westland Helicopters jointly with Agusta from Italy. Ordered by the Indonesian Air Force, the plan became a hot topic public debate when it was reported that it was to become President Joko Widodo's mode of transportation when he goes on his 'blusukan', or unscheduled inspection trips, around the country.
Dirgantara regards the purchase to go against Law No. 16/2012 on the defense industry. The problem is that "something like that (the process) must involve the domestic industry," explained Dirgantara CEO Budi Santoso. Budi contends that his company is experienced in manufacturing Puma and Super Puma aircrafts. He feels the government would do better to order EC725 or Cougar aircrafts because they would be part of the Super Puma's development process, which is part of Dirgantara's program.
Following the prolonged polemic on the AW101, the information officer of the Air Force, First Marshal Dwi Badarmanto clarified that the plan to purchase the helicopter was not solely for the use of the head of state but also for the state's security purposes. "We also need the helicopter to transport troops," said Dwi in Jakarta, last week.
Budi Santoso recently met with Tempo reporters Jobpie Sugiharto, Tito Sianipar and Raymundus for an interview, during which the company's finance and restructurization director Budiman Saleh was present. In addition to the helicopter issue, Budi Santoso also spoke about Dirgantara's operations, including one order from the South Korean President's office.
* * * *
Are you disappointed that the Air Force plans to order a foreign-made helicopter?
For us, this would be problematic because the Air Force also buys aircraft from us. They ordered the fix wing (aircraft) from Dirgantara, because we are experts at making them. We still produce rotary wing or helicopters in partnership with other companies. This collaboration was initiated by Pak B.J. Habibie when we produced the Super Puma.
Are you saying it's alright for the Air Force to buy this presidential helicopter?
I don't mind it if it's in the interest of the President's safety. But wouldn't it be possible to involve the domestic industry? Because according to Law No. 16/2012 on the defense industry, such procedures must involve the domestic industry.
You are saying Dirgantara Indonesia was not involved.
Correct. The local content mandated by law is at least 35 percent. It doesn't need to be from one item ordered by the government. For example, if this item only contains a 5 percent local content, it means an additional 7 items must be ordered to meet the 35 percent requirement of the total value (of the order price). That legislation was enacted in 2012 and the government's implementing regulation, Government Regulation No. 76/2014, was issued last year. So it became official last year. If a Cougar had been ordered, we would have been able to take part, based on the criteria set by the government. That would take at least two years to produce. But this one seems like it's needed soon. If so, it would have to be ready-made. And that means they will take a ready-made AW (helicopter).
(According to Dwi Badarmanto, the Air Force has been using domestic aircraft, like the CASA 212, CN-235, CN-295 and the Super Puma. The TNI Indonesian military has also ordered long-distance transport helicopter like the Cougar, but to date, the process has yet to be completed.)
So this one will be a VVIP helicopter?
A ready-stock aircraft, formerly ordered by India.
Is it more expensive?
In fact, ready stocks are really usually cheaper. They are usually orders that were cancelled. The party ordering them probably paid a down-payment, which cannot be returned, hence the cheaper price.