The tragedy of Gatotkaca

Indonesian Aerospace (IA) was once the pride of Indonesian. At its heyday, it employed 15,000 skilled workers to produce propeler powered aircraft and helicopters. The 1998 Indonesian crisis marked the downturn of IA. IA lost the political support of its patron, lost its skilled workers and lost the financial backing of the government. Again, this is all chiefly caused by the western capitalist evils through their investment arm, IMF.

When Indonesia signed the Letter of Intent, IMF forced the government to cut the constant financing to IA. The argument was that Indonesia should focus on its core competence, channeled money to a more productive industry, used the money to repay the debt and that the government must not provide subsidy to any company in the spirit of "invisible hand" market mechanism.

If we are to see in a more ralistic manner, no such a huge industry can be developed without the political and financial support of the government. Most of the airline manufacturers received assistance from their respective governments, who also in many cases, helped them secure contracts. Airbus and Boeing received trillions of subsidy since their inceptions until they are "privatised" 50 years ago. If not because of those subsidy, can Airbus and Boeing grew to such a huge size? Impossible. The government has the obligation to nurture the infant industry that offers huge prospect in the future. Even up to this day, Airbus still received subsidy from the French government. So why IMF insised on Indonesian government to severe ties with IA? Are they afraid that IA would one day grow to rival Boeing?

Eventhough the government knew precisely that the foreign capitalists seldom keep to their works, I wonder why they still stick to the agreement. Cutting of subsidy caused more than 12,000 skilled workers became unemployed. Since they could not look for job in Indonesia as there is only one aircraft manufacturing company, most of the skilled technicians find job at German aircraft companies, Russia and even at Boeing. Yes, a brain drain. A tragedy. But the IMF say it is ok. A painful pill to swallow. A hue price for Indonesia to pay.

I acknowledge that there has been mismanagement in the company. We still remember when the former President Habibie, when he was still a minister, exchanged 3 Gatotkacas with rice and corn with Thailand. It became a laughing stock. It is perfectly fine. IA is still in its infancy stage. There is still a long way to go. Compared to Boeing, Mikoyan, Northrop Grumman and Lockheed Martin, the 25 years old IA is still a baby. A newly born baby.

In Indonesia alone, the market for the small size aircraft is huge. CN 250 Gatotkaca is well suited for accessing the desolated regions in the country. Foreign militaries bought the military version for coastal patrol. Malaysian government recently purchased it bacause the Sultan "love it, and make it east for him to travel to small cities to visit his people." There is a market isn't it. But the problem is, IA has no fresh fund to support R & D process and restock.

The onus is upon us to pressure our government not to discard the son of the nation. I do not want to see another of our company has to be privatised (read: sold to foreign country) because of funding.