President Abdurrahman Wahid officially changed the Bandung-based aircraft company's name on Thursday from Industri Pesawat Terbang Nusantara (IPTN) to PT Dirgantara Indonesia in commemoration of its 14th anniversary.
The President did not explain the background of the change in the name ofthe aircraft company officially opened in 1976 by former president Soeharto.
The President was accompanied by First Lady Sinta Nuriyah Wahid, and someCabinet members -- Minister of Industry and Trade Luhut. B. Panjaitan, the new Coordinating Minister for Economy Rizal Ramli, and Minister of Researchand Technology AS Hikam.
Spain's Ambassador to Indonesia Antonio Segura Moris was also present.
During the New Order era, under the auspice of former minister of research and technology B.J. Habibie, IPTN was considered a milestone in the development of the country's technology sector.
In his address, President Abdurrahman asked the aircraft industry to improve its management, the key to the company's future.
""In the past we were too keen on technology. We thought technology was beyond everything. Later, it was proven that without good management technology would not work well.""
He cited as an example the success of U.S.-based General Motors, which was led by an accountant.
""I am very happy that IPTN survives and has been able to overcome all thehurdles it faced in the past,"" he said, adding that industry would always play significant roles in dealing with unemployment. ""Therefore, industry must be able to catch international market demand and fulfill domestic market (requirements).""
It was the second name change for the aircraft company pioneered in 1976 by Nurtanio, an Indonesian Air Force vice marshal.
Nurtanio was recorded as the first Indonesian who had the skill 'to make'aircraft. And IPTN stood for Industri Pesawat Terbang Nurtanio after his name.
In 1986, Soeharto changed Nurtanio to Nusantara, which means the Indonesian archipelago. And IPTN then stood for Industri Pesawat Terbang Nusantara. The change was aimed at ""widening of the nation's horizons"".
At that time Habibie, the third Indonesian president, was considered the number one person in technology in the country and became one of President Soeharto's trusted aides.
Since then, anything relating to IPTN has been linked to Habibie.
Soon after its opening, IPTN produced the CN-212 Aviocar under the license of the Spanish Construction Aeronaurticas S.A., and the NBO-105, licensed by West Germany's Messerschmitt Bolkow-Blohm.
The 'well-reputed' IPTN then signed a deal with the French Aerospatiale to produce Puma AS-332 helicopters, and in 1979 CASA trusted IPTN to produce a medium-class passenger plane, later named CN-235.
Recently, the company has been rocked by financial problems and massive layoffs have been made by the company.
Minister Luhut expressed his optimism that PT Dirgantara Indonesia had a bright future. ""Within the next 20 years the company will have exported aircraft or aircraft components worth around US$72 million.""
The company's acting president, S. Paramajuda, said in his report to the President that the company's restructuring was proceeding.
""We will enhance our business relationships with international companies,including CASA,"" he said.
Source: The Jakarta Post, Fri, 08/25/2000
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