STRATEGIC INDUSTRIES EXPECTED TO EARN RP1.1 TRILLION IN 2010

Jakarta, Jan 17 (ANTARA) - Strategic industries are expected to begin to rise in 2010 and boost their profit to Rp1.1 trillion from Rp740 billion last year, Said Didu, state-owned enterprises (BUMN) secretary, said.

"We are optimistic that the target of strategic industries could be achieved in line with the revitalization program of the national defense's main armament system," he said here on Sunday.

He said the demand for armaments of all the defense force's units and those of a number of other countries would cause Indonesia's strategic industries to rise.

Didu said that beginning this year, the government through the Ministry of Finance had agreed to provide multi-years financing of strategic industries' projects.

"Strategic industries have secured a multi-year contract guarantee so that the implementation of the projects would be guaranteed," Didu said.

Indonesia's aircraft industry PT DI has secured a contract for the building of aircraft and their components, while the shipbuilding firm PT Pal Indonesia has also secured contracts for the production of ships, ship docking and maintenance. In the meantime, arms producer company PT Pindad is also producing guns, cannons and tanks.

"Therefore, strategic industries are expected to increase their capital expenditures beginning this year for the need of their investment and work capital," Didu said.

This year the capital expenditures of strategic industries jumped by 235.3 percent to Rp1.9 trillion from Rp570 billion in 2009.***