http://www.tempointeractive.com/hg/nasional/2009/02/05/brk,20090205-158711,uk.html
Indonesian Government Ready to Face Xian's Lawsuit Thursday, 05 February, 2009 | 23:03 WIB TEMPO Interactive, Jakarta:The department of State-owned Enterprises (SOE) is ready to face a lawsuit brought by Chinese airplane producer, Xian Aircraft Industry against PT Merpati Nusantara Airlines. In the lawsuit, Xian is demanding a Rp1 trillion reimbursement from Merpati for the 15 MA-60 propeller airplane it had ordered. "If they sue us, we will fight back, but in principle, we will resolve this conflict amicably," said SOE minister Sofyan Djalil in his office yesterday. The government tried to resolve the issue professionally and negotiations to reach a mutual agreement is ongoing. The negotiations focused on the price, quantity and quality assurance of the airplanes, including a buy-back guarantee in case the MA-60 planes did not meet certain quality requirements. According to Sofyan, quality assurance is necessary for the new airplanes' operation in Indonesia, "because we bought a large quantity, not just three units like other countries do." The government holds the right refuse aircrafts that could have damage Merpati's reputation, particularly when another state-owned airline is currently undergoing restructuring. According to a Tempo source the government in fact had not approved the contract to purchase the MA-60 airplanes, because the approval needed to be vetted by a shareholders' meeting at the SOE department. With each unit priced at US$15 million, the MA-60 aircraft is considered to be overly expensive, especially when it is an old stock that had been kept in the warehouse. "Just imagine, the planes were manufactured even before it was ordered," he said. Merpati CEO, Said Didu, said the MA-60 purchase was the government's domain. "So, the ball is in their hands," he said. WAHYUDIN FAHMI
