STRATEGIC INDUSTRIES WELCOME PLANNED DEFENSE BUDGET HIKE

Bandung, W Java, July 11 (ANTARA) - Several state-owned strategic industries welcomed the government's decision to raise the defense budget by 20 percent in 2010.

President Susilo Bambang Yudhoyono unveiled the plan to raise the defense budget here on Friday at the delivery of 40 units of APS 6x6 armored vehicles made by PT Pindad.

The state-owned strategic industries that hailed the government's decision included aircraft maker PT Dirgantara Indonesia and PT Pindad, the weapons' maker.

They hope with the increasing budget they would get new contracts for defense system equipment. "Our biggest income so far have come from contracts with the defense ministry reaching 60 to 80 percent of our income," PT Pindad's director, Adik Avianto, said.

Besides contracts for purchase of weapons and ammunitions PT Pindad also obtained contracts for 154 units of APS 6x6 armoured vehicles which were targeted to be met in 2010.

PT Dirgantara Indonesia meanwhile also hoped the increasing budget would also be used to buy the company's products such as CN-235, N-Bell and Super Puma helicopters.

The company had stopped making NBO-105 helicopters because the license contract for it from Bolkow had finished.

PT Dirgantara Indonesia's director of aircraft integration, Budi Wuraskito, said the value of the contracts for aircraft purchase from the defense ministry in the past five years reached around US$25 million.

He hoped the company would get more contracts following the government's decision to increase the budget for the defense ministry.

He hoped the company could handle more TNI (military) aircraft. "In the future we are ready to become a partner in supplying aircraft spareparts in cooperation with aircraft manufacturers abroad so that no problem would be found again with regard to parts supply for maintainance," he said.

Other strategic companies welcoming the government's decisions are PT INTI and PT LEN that produces and develops telecommunication instruments for civilian as well as military purposes.