What do high-technology aircraft and sticky rice have in common? Not much, except that in Southeast Asia, they are items for bartering.
Last month, Indonesia's state-run aircraft maker Industri Pesawat Terbang Nusantara (IPTN), the brainchild of Minister of Research and Technology, Yusuf Habibie, agreed to exchange two locally made CN-235 aircraft for 110,000 tonnes of Thai sticky rice.
Critics say the US$34-million deal indicates IPTN has yet to earn its wings in the market place. IPTN argues sales figures show it already is internationally competitive. The question is, what effect, if any, do such deals have on the regional market? The sticky rice agreement follows a similar pact with Kuala Lumpur for Malaysian-made trainer aircraft and cars. Another counter-trade deal with Pakistan is in the pipeline for 15 Indonesian N-250 aircraft.
The 44-seater, multi-purpose CN-235 is produced jointly with Spain's CASA company. The 70-seater N-250, a commuter aircraft, is a larger version of the CN-235. It made its maiden flight last August.
Christianto Wibisono, head of the private think-tank, the Business Data Centre, said: 'Sticky rice is not a staple need. These deals are done to show IPTN can sell its product, even though by irregular means. But after 20 years in the business, it should be beyond this stage.' Didik Rachbini, head of the Institute for the Development of Economics and Finance (INDEF), said: 'It is a solution to the problems of both sides - both have goods they need to sell. But the difficulty is, to whom will the sticky rice be sold in Indonesia, and who will use the aircraft in Thailand?' IPTN says it and CASA already have sold 160 CN-235s, with 125 already delivered. Of the 37 sold by Indonesia, 15 went to the state-run Merpati Nusantara Airlines, and six to the military.
The government has spent US$1.6 billion on IPTN, with $650 million earmarked for the N-250. Mr Habibie said he already had received 219 orders for the N-250 and needed 40 more to break even.
